For consultancy, the hourly rate the customer is paying to the employer versus what actually lands on the bank account at the end of the month.
For product development, the price of licenses and support deals per month, correlated to the hourly cost of everyone on the office, and then what actually lands on the bank account at the end of the month.
As for how much money it costs me an FTE to play around something outside the planned roadmap, their monthly salary divided by the amount of hours they are supposed to be working per month, correlated with the time spent on said activity.
Actually I have been in a couple of projects, where instead of sprint points or hours, we actually had euros as ticket efforts.
> For consultancy, the hourly rate the customer is paying to the employer versus what actually lands on the bank account at the end of the month.
No, that is just accounting of salaries. That doesn't calculate the value/worth of the work and hence can't be used to determine salaries. That's circular logic.
> For product development, the price of licenses and support deals per month, correlated to the hourly cost of everyone on the office, and then what actually lands on the bank account at the end of the month.
That is not really what I was asking for or my parent talking about. We were talking about specific salaries. Engineer X wants Y salary. justified or not? You are suggesting revenue/hours.
With that logic, everyone gets the same salary and you would also value the identical work differently depending on the revenue (which might or might not be justified)
Too many Java devs to chose from? Salaries going down.
Can't get hold of them? Salaries going up.
Whatever engineer wants is driven by market prices in land, and offshoring prices as well.
And yeah in countries with collective agreements across the industry, regardless of your actual job, everyone on the company building gets their tariff XYZ salary as per yearly industry agreement.
i might be missing something but you are still equating value of work with salaries for some reason. this is the context we are discussing, the original quote:
"How much of each dollar you make for the company with your hard work do you take home?"
i was asking how you calculate how much you make for the company. you specifically. not 'revenue/hours' or whatever. you and you only. salaries do not factor into this. how could they?
> And yeah in countries with collective agreements across the industry, regardless of your actual job, everyone on the company building gets their tariff XYZ salary as per yearly industry agreement.
that isn't true though. this might be the case in some countries (please provide a reference) but in europe with strong unions and collective agreements, it is wrong. it sets the minimum standard and companies pay over that agreement all the time.
How much of each dollar you make for the company with your hard work do you take home?