Commission Inquiry
I’m trying to approach this matter from an objective perspective:
If Consultant A generated £225k in revenue for an engineering agency over the course of a year, what total compensation would you anticipate for them?
Additionally, Consultant A has a company car that they can use for personal purposes and charge related expenses to the office.
When considering the total remuneration for Consultant A, who billed £225k in a year for an engineering agency, several factors come into play.
Base Salary/Commission: Typically, consultants in this field can expect a combination of a base salary and commission on the revenue they generate. A reasonable expectation for a consultant who has billed this amount might be around 40-60% of that as their base salary, depending on the agency’s commission structure. This could translate to around £90k to £135k.
Commission: If the consultant receives a commission on the billed amount, this could range anywhere from 10-30%. For example, if the commission rate is 20%, that would add £45k to the total remuneration.
Bonuses: Depending on the agency’s policies, there may be performance bonuses or incentives based on targets achieved, which could be an additional £10k to £20k.
Benefits: The value of the company car, especially with personal usage, can also be a substantial part of the remuneration package. Depending on the car’s value and the agency’s policy on personal use, this could be valued at around £5k to £10k annually.
Considering all these factors, a reasonable total remuneration expectation for Consultant A might range from around £150k to £200k, assuming a healthy mix of salary, commission, bonuses, and the added value of the company car. Ultimately, the specific remuneration would depend on the agency’s commission structure and benefits package.