Transparency

Why Transparency?

Technical product development is a highly creative process, and the best firmware, electrical engineering and software professionals are self-motivated to do great work. However, the I've-got-a-secret game played by many placement companies has a corrosive effect on business relationships which hampers that creativity, making it difficult for clients to attract and retain top talent. Transparency in the contracting relationship isn't just the right way to approach placement, it makes good business sense for everyone.

It is an accepted principle that employees shouldn't share their salaries with others. However, placement companies have attempted to extend that common sense approach to prevent contractors, placement agencies, hiring managers and other executives from knowing rates and commissions. We see nothing wrong with contractors and hiring managers alike knowing what we are earning for our services, and hiring managers knowing what contractors are being paid for theirs. We believe this creates a level playing field so that all involved can make informed decisions, and prevents abusive practices, such as those described on our Pitfalls page, from creating needless obstacles.

Rate Expectations

Our compensation generally follows the guidelines below, although special cases may arise where our expectations may be higher or lower than given below. In any case, we encourage our contractors and hiring managers to discuss their rate information with each other (although not with other contractors, for similar reasons that employees should not share salary information). See our Contracting Models page for additional information regarding the terms below.

Direct C2C

For direct C2C contracts for which we made introductions, we expect the contractor to pay us 10% of paid invoices as a referral commission. Contractors with a long track record of operating their business and staying current with invoicing will qualify for this model, depending on the approval of the end client.

Managed C2C

For managed C2C contracts, we expect to earn 20% of what the contractor's business entity is receiving, or approximately 17% of the total billing to the client. This higher commission reflects our involvement in handling the invoicing and payments, and taking a more active role in the day-to-day business relationship. Most C2C contractors will fall into this category.

W-2

For W-2 contractors, we expect to earn 25% to 30% of what the contractor is receiving, or approximately 20% to 23% of the total billing to the client. This higher commission reflects the payroll deductions and other W-2 related expenses, which can vary by locality, and excludes benefits. Benefit plans, if available, will incur higher percentages and be handled on a case-by-case basis.