this post was submitted on 03 Dec 2023
247 points (99.6% liked)
Technology
37713 readers
443 users here now
A nice place to discuss rumors, happenings, innovations, and challenges in the technology sphere. We also welcome discussions on the intersections of technology and society. If it’s technological news or discussion of technology, it probably belongs here.
Remember the overriding ethos on Beehaw: Be(e) Nice. Each user you encounter here is a person, and should be treated with kindness (even if they’re wrong, or use a Linux distro you don’t like). Personal attacks will not be tolerated.
Subcommunities on Beehaw:
This community's icon was made by Aaron Schneider, under the CC-BY-NC-SA 4.0 license.
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
When running a business, you need to budget 3x salary for actual TCO of a staff member:
1x covers their direct salary 2x covers retirement fund, electricity, office space, and infrastructure items unlike server and laptops for corporate use etc.
The 3x multiplier is for when you're a services company, and that represents a possibly profit margin.
So for signal, your $380k becomes $190k which in my experience is average for a US tech sw dev at a mid to early senior level.
I donate to signal monthly and I have no problems with the costs they're posting. I work in SV tech and I've seen 20x worse numbers.
I’m extremely curious where you get those numbers from, I operate businesses and that doesn’t pass the sniff test.
I've used the 3x multiplier for staff planning at services companies since the early 2000s.
Perhaps there are regional differences, but they've rung true for planning billable rates of return at every services company I've worked at in the last 20 years here in AU.
I realise that the services aspect isn't relevant, but having the sum of indirect staff costs equivalent to staff salary cost when office space is involved isn't a massive stretch in my experience. (Indirect costs would include office rent, utilities, infrastructure and a share of shared functions such as IT, HR, facilities etc...)
3x is too much tbh. It's more like 2x in total, at least going by european points of view - I don't know what would make the US more expensive though with even less welfare. And office space in these days is a diminishing cost of course with all the hybrid/remote options. Laptops cost is pretty negligible. I think Signal does have a lot of hosting costs though.