Commission Inquiry
I’m aiming for an impartial perspective on this:
If Consultant A generated £225,000 in billings over the course of a year for an engineering agency, what total compensation would you anticipate for them?
Additionally, Consultant A has a company car that they can use for personal purposes and charge at the office.
When evaluating the total remuneration for Consultant A who billed £225k in a year for an engineering agency, we need to consider several components:
Base Salary: Typically, consultants can expect to earn around 30-50% of their billable amount as base salary, depending on the industry and their experience. For £225k billed, a base salary might range from £67.5k to £112.5k.
Commission/Bonuses: In addition to the base salary, many consultants receive commission or performance bonuses based on their billable hours or overall company performance. This could add another 10-20% of the billings, which would be approximately £22.5k to £45k.
Company Car: The inclusion of a company car adds value to the total remuneration. The taxable benefit of the car depends on its value, emissions, and other factors, but for estimation, it could add around £5k to £10k to the overall package.
Benefits: Additionally, benefits such as pension contributions, healthcare, and other perks commonly add another 5-15% of the base salary. This could range from £3.5k to £16.9k.
Total Remuneration Estimate:
Considering these factors, the total remuneration package for Consultant A could realistically range from approximately £98.5k to £174.4k.
It’s important to note that these figures can vary significantly based on the specifics of the role, the company’s compensation structure, and the industry standards.