Category: IT Staffing
Among the most frequently asked questions from job seekers converting from salaried to a contract or consulting positions is that of compensation. Specifically, how to convert their current or desired salary to an hourly rate for a W-2 contract assignment. The following steps can be used as a guide:
Divide your annual salary by 2080 (annual hours worked) to arrive at the raw hourly rate {A}
Multiply your raw hourly rate {A} x number of desired vacation days + Paid Holidays x 8 (hours per day) {B}
Add in your annual health insurance premiums {C}
Add your annual salary + Vacation / Holiday Pay {B} + annual health insurance premiums {C} and divide by 2080 to arrive at your hourly rate inclusive of basic benefits
As an example, assuming an annual salary of $100,000, 3 weeks of vacation + 6 paid holidays, and $4800 in health insurance premiums, the hourly rate would be:
$100,000 / 2080 = $48.08{A}
$48.08 * 15 vacation days + 6 paid holidays * 8 hours/day = $8077.44 {B}
Salary $100,000 + Vacation & Holidays $8077.44 + Health Insurance $4800=$112,877.44
$112,877.44 / 2080 = $54.27 Contract / Consulting hourly rate
You can add other benefits such as employer’s 401(k) contributions to this formula, however, it is important to note that the job market ultimately determines the going rate for your skill set. You must set realistic expectations by researching the job boards to gauge what the employers are paying for your skills. There are other benefits to working contract which should also be considered in addition to your compensation.
All staffing agencies and most major employers use an Applicant Tracking System (ATS) to manage resumes. According to Ed Struzik , an IBM expert on ATS technology, the percentage of large corporations using such systems is in the high-90’s. Among many features and benefits of an ATS is the ability to filter resumes based on keywords. It has become increasingly important to ensure that you resume is “ATS friendly” or that your resume is parsed correctly by automated software applications. Here are some tips to write an effective resume:
Use simple formatting without Headers/Footers, Columns or Tables
Avoid any special characters and fancy bullets and never include images or graphics
Stick with common fonts and do not use colors
Save your resume in MS Word or Text format only, do not use a PDF format
Do not use Templates as they use formatting that you will not detect readily
Use common headings such as Summary, Experience, Education etc.
Be consistent when writing your employment history. For example, Company, Title, Location and Date (in reverse chronological order)
It is important to remember that in the end your resume content is what will get you noticed. Be very specific when describing your skillset and responsibilities