Intertech offers several solutions so you can find one that fits your needs. On the development front, we start by placing consultants that are proven leaders focused on getting in, spooling up quickly, and building your software using best practices. At the same time, we augment these professionals with a recruiting department that works with you to bring on resources that you can ensure are the kind of people you want on your team. Whether consultants, contract to hire or direct hire candidates.

Engagement Options

No matter which engagement you select, Intertech will be involved to ensure all goes well – from background checks, technical assessment, role assessment, onboarding, support & beyond.

• Consulting Services
• Contract to Hire
• Direct Hire

Interview Process

Once a candidate is identified, the steps outlined in the graphic help determine the best resource and assist you in maintaining a healthy culture in the workplace, whether a junior, intermediate or senior asset. No matter which level of expertise the candidate has, we have a motto, “Great-People-Need-Only-Apply.”

(Click Graphic To Enlarge)

When comparing apples-to-apples – Senior FTE developers to multi-project experienced consultants — the actual difference in productive hourly rate is minimal and quickly made up in co-development costs through the avoidance of common errors, knowledge transfer, and flexibility in team scalability when the project is complete.

FTE = Full-Time Employee

—————————DEFINITIONS:

Base Salary

Base salary is the paid to an employee, not including any benefits, bonuses, overhead, G&A, or raises.

Direct Expenses

These are the expenses related to the employee’s base salary paid by the company that goes beyond the base salary but should be included. Direct expenses include:

• FICA & Unemployement = 9.5%
• Medical Insurance = 7.1%
• Dental & Other Incidentals = 1.5%
• Retirement 401k Match = 3.5%
• Bonus = 6.8%

NOTE: If your calculations are different than these, feel free to enter in 0% to 100% depending upon your company’s rates. For Example: – if your “bonus = 15%” and your “401k match = 6%” then together they equal 21%. Next, subtract our number of 10.3% from your number of 21% and add the difference to our preloaded number of 28% (28% + 10.7% = 38.7% for direct expenses rate) .

Indirect Expenses

When determining what a workflow costs or comparing apples to apples between full-time vs. outsourcing (consultants have these figures included in their hourly rate), these are the expenses that are often forgotten as required costs of doing business and having an employee on staff. Indirect expenses include:

• CEOCFO
• HR & Recruiting Cossts
• Finance Department & Tools
• Marketing
• Sales
• IT systems
• Hardware
• Software
• Lincense/Fees
• Support
• Infrastructure
• Mortgage & Interest
• Property Taxes
• Utilitiess
• Office Furnature
• Facilities Expenses
• Supplies & More

NOTE: If your calculations are different than these, feel free to change the percentage to fit your company’s overhead & G&A. For Example: According to a 2018 Deltek survey (source) that included 638 respondents, in companies listed as Small (under $20 million), Medium ($20 to $99 million) and Large (over $100 million), and included over 90 questions, found the average indirect expenses for the different company sizes came in at: Small Business = 56%, Medium Businesses = 57%, and Large Businesses = 48%

Actual Salary

Base Salary plus direct and indirect expenses determine “Actual Salary.

Based on 2080 hours in a year (260 workdays x 8 hours each day) — Minus 168 hours for paid vacation (21 days) — Minus 64 hours paid holidays and (8 paid holidays) = 1,848 — Adjust to fit each employee’s specifics.

Employee’s Calculated Base Hourly Rate

“Actual Salary” divided by “Maximum Hours Available.” based on 100% productivity.

Estimated Daily Productivity

100% equals an 8-hour day without breaks, 87.5% equals a 30-minute lunch break and two 15-minute breaks while the rest of the day is productive. Below are the universally accepted productivity rates:

• Freelance Developer = 96%-98%
• Consultant Developer= 96%-98%
• Full-Time Employee – Developer = 74% to 81%
• Full-Time Employee – Base = 37% to 47%

It is important to remember that corporate required training, events, seminars, expectations, oversight, and other factors take away from actual work and lower the productivity rate of a full-time employee. In contrast, while an outsourced freelance and consulting resource’s hourly rate is based on a much higher production rate per hour due to the nature of their position and expectations (typical rates listed above).

RESULT: Employees Productive Hourly Rate

Outsourced resources tend to be at a 96% to 98% productive rate due to their role. Full-Time Employees (FTE), based on multiple research articles and data, tend to run between 37% and 78% productive within an 8-hour workday, depending upon their job description. THIS IS THE NUMBER TO USE WHEN COMPARING OUTSOURCED RESOURCES HOURLY RATES & ESTIMATES because their rates include all direct and indirect expenses.

FINALLY:

Take the Consultant’s hourly rate and subtract your senior-most developer’s PHR (Productive Hourly Rate) you just calculated. In doing so, you arrive at the amount you will pay for the expertise and perspective the Consultant has gained by working on multiple projects and teams doing work that your team may only do once.