Consulting firms, what cut should they take?

[bigbadboss101]

Ok, some of you are employed thru consulting firms, and some work for them. My questions is, what cut is reasonable?
For example, Husky pays ABC Consulting $50 per hour for employees. ABC pays workers $30 per hour. Is the 60/40 split reasonable?

It does depend on industry. So for IT, O&G industry do you agree the 60 employee/40 consulting firm cuz is fair?

[bigbadboss101]

bump, no one can share their experiences?

[FishPoo]

There is no fair? The problem is, every consulting group provides different services. If it's 60/40, then the firm better be providing quite a bit of work for the employee, in one of my cases, i think the split was 80/20. In times like this, I would expect the employees to get a larger cut from the firm but anything for 60-80% sounds good to me.

I mean as long as employer = happy and employee = happy, I don't see an issue.

[Envitro]

Depends on experience too. If you have more experience you can demand a better cut... and it depends on balls too..

if you can ask for more, you will get more.

I remember when I first started I was getting billed out at $75 per hour and I got $15 per hour. After two months I rebelled and asked for a better cut, and they wouldn't give it to me. I quit soon after and got a waaaay better deal. This was about four years ago though, but still. Some are bastards about it, while others can be fair. It really depends.

I have friends who were able to get much better deals recently, in the 80-20 to 90-10 range.

[boi-alien]

bottom line. as long as you're happy with what your rate is, whatever the consulting firm can get above your rate, you don't quetion it, just means they're good at bargaining or you don't know your own market value.

[barbarian]

These are the "pimp" type of consulting firms that you are talking about, right? The companies that you go to when you get laid-off, and that take a giant cut?

[bigbadboss101]

No, not like that.

I am in systems and was working at Shell doing SAP work. This consulting firm hired a number of functional personnel. I am more technical, having done ABAP, HR, configuration a long time ago.
The work I am doing now is more functional.

Firm bill us out at the same rate. The dozen of us all get paid differently though. I am up for renewal end of year and I am deciding if I should as for a bump.

[Euro838]

Why don't you pimp yourself out and take 100% of the pay? I'm sure if you are a good at what you do and your client is impressed with your work, they would be more than willing to help you out in terms of your compensation and they'll probably be able to save a bit too. I know there are clauses in these contracts stating they can't hire you for a period of time but there's always ways around it. I just think it's robbery what these pimps are getting for essentially doing very little. I know they say they'll take care of you when times are slow but during these times if you sit on the bench for 3+ months, they'll just lay you off. So much for security. Anyways, if I were to work for these pimps, I'd make sure I had the bigger part of the pie. Anyways, if you are good at what you do, I'd suggest you command what you deserve.