How Much Am I Worth Per Hour? (Financial Advice)

Javery

Javery

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OK, here's the deal... I would greatly appreciate if anyone can figure this out for me.

I'll try to keep this simple... Employee X makes a set salary per year plus a year-end bonus working for Company Y. Employee X also receives matching 401k contribution, medical and dental insurance from Company Y and 3 weeks paid vacation time. Employee X quits her job to have a baby and Company Y wants her to come back and work part time to help out. Company Y will pay Employee X on an hourly basis for her services.

How do you compute what a fair hourly wage is based on everything the employer provided when Employee X was a full time employee? Company Y wants to take her salary and divide it by 2000 hours to get the rate but obviously there is a lot more to it. Company Y and Employee X are on good terms and Company Y asked Employee X to come up with a fair number. Can any of you help? THANKS!
 
I'd say, given that "they" say that you need to make about 33% more as an independent contractor to cover things like indurance and benefits, that the formula should be (salary/2000)*1.33, maybe start at 1.4 and negotiate down to 1.33.
 
well how many redlights turn every hour? Plus you can make more at rush hour! And it depends on what clothes you have one. Oh and the size of your boobies might make you more money ( or less if your a man)
 
Is EmpX a 'contractor' or a 'part time employee' or a 'temp'? Would she still get benefits through the company, be asked to chip in for them, or is she on her own with that? How long will she be 'helping out'?

It could be argued that those benefits Company Y gives, 401k match, health, bonus, etc, are to reward full time, dedicated employees, and since her current status is not eligible, the costs thereof should not be counted in to an hourly wage offer. Not sure if you can ask this, but is she married? Does she have insurance elsewhere? If she does, it wouldn't be 'fair' to pay her cash for the healthcare costs, if you don't offer that option to FT employees.
And not to make it too simple, but a fair wage is one both parties agree to for the work to be performed that meets or exceeds any regulatory guidelines. A lot of places don't even hire part-time, so they could get away with paying either less or more. My son's daycare charges a lot more per hour for 2 or 3 days a week rather than 5 days a week.
 
[quote name='Mr_hockey66']well how many redlights turn every hour? Plus you can make more at rush hour! And it depends on what clothes you have one. Oh and the size of your boobies might make you more money ( or less if your a man)[/quote]

I read an interesting analysis about this [the women get paid less myth] in The Week magazine. There's a lot of misunderstanding to it, and the best way to represent the fatal flaw in the problem is to ask, "If women get paid 50-80% of men, consistently and regularly, why would a company *ever* hire a man?"
Here's another argument: " Feminists routinely claim that women get paid less than men, putting the blame on discrimination by men. They say that women only get about 83% (or some such figure) of the average male wage -- yet their statistics never take into account the length of the careers of the individuals concerned ! Because women routinely take time out of their careers to have and raise children (and then usually get sole custody of them upon divorce), the average female career is shorter than the average male career -- which inevitably means that they are less senior than their male colleagues, on average, and therefore that their pay will be less ! "
More to it, of course.
 
[quote name='dtcarson']Is EmpX a 'contractor' or a 'part time employee' or a 'temp'? Would she still get benefits through the company, be asked to chip in for them, or is she on her own with that? How long will she be 'helping out'?

It could be argued that those benefits Company Y gives, 401k match, health, bonus, etc, are to reward full time, dedicated employees, and since her current status is not eligible, the costs thereof should not be counted in to an hourly wage offer. Not sure if you can ask this, but is she married? Does she have insurance elsewhere? If she does, it wouldn't be 'fair' to pay her cash for the healthcare costs, if you don't offer that option to FT employees.
And not to make it too simple, but a fair wage is one both parties agree to for the work to be performed that meets or exceeds any regulatory guidelines. A lot of places don't even hire part-time, so they could get away with paying either less or more. My son's daycare charges a lot more per hour for 2 or 3 days a week rather than 5 days a week.[/quote]

These are very good points. EmpX is a CPA and she will be covered under my insurance. I'm not sure if employees get paid to not accept benefits at Company Y - it works that way at my job but I don't know about hers. She put in 8 years of service there and just wants to make sure she isn't lowballed. They need her help more than she needs to work...
 
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