Another question on salary 6

[newengie]

Hello all,

I'm a fairly new engineer with a little over a year experience working for a mechanical engineering design firm in Northern California. I am making a little less than 20% of what the company charges. I haven't been in this field long enough to know if that kind of pay range is what I should be getting. Any input/advices would be greatly appreciated. Thanks!

newengie

 

[TheTick]

Now that I realized I am underpaid

That, or your employer is overbilling. You don't "deserve" money based on what your employer is billing. Such thinking would be in need of a good swift adjustment.

 

[vc66]

As usual, Tick is the voice of reason.

Maybe you suck at what you do, newengie. Not saying that you do, but theres a bunch of different reasons why the company pays you the percentage of the bill out that they do.

To think that you're underpaid because just because of your percentage of the billable rate doesn't really tell the whole story.

V

 

[newengie]

vc66,

I thought employers are always looking to pay the least possible?

 

[IRstuff]

They could be doing both; underpaying you, and overcharging the customer. No two companies have the same cost structure or market, so there's no telling, simply from the multiplier, whether you are actually underpaid, relative to your peers in the same area and the same industry.

I know from previous experience that such cost multipliers can easily have 30% variance from company to company.

TTFN

FAQ731-376

 

[vc66]

The least possible for someone who is integral to the company is much more than the least possible for someone who is dead weight.*

*Assuming the same negotiation skills.

V

 

[TheTick]

Employers are not always looking to pay as little as possible to employees. Sometimes valued employees get paid more because they help the company make money.

 

[ScottyUK]

Some get paid more because they can't be replaced, or at least the knowledge locked away in their heads can't be replaced. I'm sure my previous management had weighed up the balance between my occasionally argumentative attitude against my knowledge of the plant and ability to get it making money. The money always had the louder voice.


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If we learn from our mistakes I'm getting a great education!

 

[apsix]

I know from experience that such cost multipliers can easily have 30% variance within the same company.
In fact, within the same office as I'm now sitting.

It doesn't help my morale to know that a 'more valued' employee has a 15% larger salary with a 12% lower charge-out rate. As it is information that I'm not meant to know it's difficult to use as a bargaining chip.

Employers will often pay only as much as they think that they can get away with.

On the other hand, I'm earning a lot more now than I would without a job....