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    to get promoted or not to get promoted

    Interesting dilemma and myself and couple others are facing it right now..

    basically in the consulting world business is slow, so different groups within a company are fighting to put their people on projects. Clients are asking for low costs due to competition between companies, the firms have pressure to keep their bid prices low, which impacts what kind of resources costwise they will take to the project.

    so lets set the factors here in a more logical manner

    business slow = increased competition between firms = pressure on firms to keep prices low = use cheaper resources if possible.

    add to this that due to low utilization different groups within teh company are fighting to place their consultants on a project, so increased competition there.

    Myself and some people who joined the company recently are being advised the following

    1) you can pick whether or not to get promotion
    2) you salary increase will be the same whether or not you get a level above
    3) if you get promoted then you are at a higher billing rate.
    4) you are at a higher billing rate and are newer in the company so you dont have the network to try and get on projects and your higher billing rate may keep you out from projects because either we pass higher costs to client and lose on proposals, or we take a loss ourselves.
    5) If you dont get on projects and your utilization rate is low, if the company decides to cut people, people with low utilization will be first to go.

    suggestion is to just take the pay raise, and wait for the economy to get a bit better, build the networks and get a mid year promotion which the seniors have committed to.

    I had a very open discussion with the partner who I report to and he has given me a few days to decide whether I want him to nominate me for promotion to the group or whether I want to keep my bill rates low and get considred for promotion mid-year.

    under normal situation i would have def said i wanna go for the promotion, looking at current economic conditions andmy tenure at the firm, i am thinking of playing it safe...

    whatcha say?
    The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

    #2
    suggestion is to just take the pay raise, and wait for the economy to get a bit better, build the networks and get a mid year promotion which the seniors have committed to.

    I think you answered your own question...
    1) You are gonna get the promotion after a few months anyways so whats the rush....
    2) Your salary increase is the same so nothing lost there
    3)Higher billing rate is a lot of pressure and with the current economic condition and competitive nature of industry I wouldn't recommend unnecessary stress.

    ciao
    BoSS

    Comment


      #3
      Boss

      yeah, I am sometimes toological and all in this. The good thing is that I know they are not trying to screw me over but are on my side in this.

      The 3-4 people I know who are in a similar situation are thinking the same. I will be like 5-6 months behind on the promotion track but atleast have a better chance of surviving the downturn.
      The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

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        #4
        what's billing rate? is it the salary where u are taxed heavily like in the UK if ur salary is 28.4 (latest 29.4K) then u r charged higher tax.

        Comment


          #5
          Khan sahib in consulting world the billing rate is the charge per hour to the client. There are different billing rates based on a consultant's level of expereince. I new consultant may be billed at $150/hour whereas a partner could be billed at $600/hour. Then there are graduated billing rates for people at different bands/levels within the organization.

          Billing rate is not what you make, but the more senior you become the more leveraged you are higher your billing rates. They have a relation to salary because just as you have certain range of salary within levels/bands there are certain levels of billing rates per level/band. The billing rates are more standard than salaries actually overlap to some extent in the levels.

          The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

          Comment


            #6
            Fraudia.
            if its just a few months, play safe. But what's the American economy gonna do in a few months? So, seems to me like a postponed execution.
            Regarding the introduction of the Euro and the USD still at a high level I believe ur economy will go down.

            From my own personal experiences (if they could be of any intrest to you) ;
            Been safe and logical for too long. Now, i regret that sometimes. So, there are times you have to forget the algebra and stop thinking.
            (otherwise threat them you'll leave for Holland, plenty of jobs over here http://www3.pak.org/gupshup/smilies/wink.gif)
            Good luck.

            Comment


              #7
              Originally posted by khan_sahib:
              what's billing rate? is it the salary where u are taxed heavily like in the UK if ur salary is 28.4 (latest 29.4K) then u r charged higher tax.
              Khan Sahib: The billing rate in cosulting includes the (annual salary + benefits + bench time + overhead)/ number of hours in a year.

              Does that make sense Mr. Fraudia? I have not done this for a while now. BTW/What type of consulting do you do?

              Comment


                #8
                infoman, you are talking about yearl costs. Billing rate is simply how much my clients pay my company for my work on an hourly basis.

                I am in strategy consulting area. mostly aligning International business strategies with IT tools ranging from supply chain to CRM, portals, ERP etc etc.
                The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

                Comment


                  #9
                  Originally posted by Fraudz:
                  infoman, you are talking about yearl costs. Billing rate is simply how much my clients pay my company for my work on an hourly basis.

                  I am in strategy consulting area. mostly aligning International business strategies with IT tools ranging from supply chain to CRM, portals, ERP etc etc.
                  With all due respect Mr. F, the rate that is offered to your clients by your company is based on the factors I have mentioned.

                  I also did Business Strategy consulting for seven years, including Business Alignment. However, now have switched over to Banking. Good luck with your promotion quandry. In my experience in consulting, it is so regimented (put in your time and get the promotion. As an undergrad, you do your two years and become a senior consultant/associate. They expect you to get an MBA and then come in as a manager. Did you find the same? ) that if the opportunity arises for greater responsibility and management, jump on it. Money will always be there because of the higher value for strategy consulting.

                  Comment


                    #10
                    Infoman

                    I joined as a manager since I have been in the industry prior to consulting. I did the opposite of your journey and went from Financial Services to consulting.

                    As far as regimented, yes it is regimented, but you have to show your worth in a certain period of time its move up or out which does some QA as you get higher and higher.

                    The career paths and movements in fina services were planned too, but without real pressure, I often ran into dinosaurs who were just there because they had the networks to be there and were happy in the position they had been for 10 plus years. Not the case in all functions but when you look at the operations side of the house you may see this pattern.



                    [This message has been edited by Fraudz (edited July 11, 2001).]
                    The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

                    Comment


                      #11
                      delay the promo..

                      you are right in the fear that higher costs will keep the people from hiring you.. therefore low productivity and making you surplus to requirements...

                      promotion isn't always good.. as one of my colleagues suddenly found out that due to regrading.. he got a promotion.. and therefore does not qualofy to get overtime.. while he did before.

                      in addition on of my uncles delayed his promotion for many years because he got many benefits at the lower level which he would have lost as a senior.. at the end he was given a choice.. get promoted or got going..

                      Comment


                        #12
                        delay the promotion bcz of overtime ???

                        Heck, I don't think money should be the only focus. What about career building, more broad base of knowledge, interacting with a higher level of people. Prestige. More responsibility. Career progression and ultimate career goals.

                        I can understand delaying promotion, because once promoted your billing rate will increase, increasing the cost of the project hence might become a factor for keeping you out of the projects... but don't delay promotions for losing out on overtime!

                        Comment


                          #13
                          and your higher billing rate may keep you out from projects because either we pass higher costs to client and lose on proposals, or we take a loss ourselves.

                          If the salary is not dependant on promotion than how will the company make more or less loss by placing you on a project? In most companies I know, they have two (or more) different cost workings. [list=1][*]Outside Charge-Out Rates: For the clients (based on level and grade)[*]Internal Cost Rate: Internal cost calculations (based on salary and other costs which a company actually incurs on you)[*]Inter-office Charge-out Rate: A third one for charge-out rates of inter-office enagagments, etc. Its usually between #1 and #2.[/list=a]

                          So the loss on a project, will be higher if using #1, as compared to #2. And if salary and other compensation is the same for current level as against to promoted level, than #2 will not be effected, by promotion.

                          Just a thought. But you already know this. Right?

                          At the end of the day, you going on a project will also depend on your skills and performance. But billing rate is definitely a factor.

                          Comment


                            #14
                            Peacemaker

                            In almost all cases their is a slight overlap between different scales. I get the benefit of the overlap because my Boss decides that. However, whether inter office or whether for the same office but on a different practice area's project the billing rates are standard and thay have to factor those in and if they offer me to a client at a lower rate, its considered an internal loss.

                            Unlike being on the audit/acct type area which you are more familiar with. In the consulting projects resources from various different practice areas are pulled and while you may need the skills, if there are pricing pressures you would like to get the lowest rate resource who can get the job done.

                            My Boss' view is that he wants to keep me as an attractive resource to people from other practice areas who are looking for people with my skills and give me the time to build my network in the company so people know me more and not write off as a proposed resource if the bill rate seems high.

                            Either way I have decided to play it safe for now, and defer for the mid year promotion in Jan.

                            The greatest trick the devil ever pulled was convincing the world he did not exist. And like that... he is gone.

                            Comment


                              #15
                              Interesting I learned some new business phrases.

                              Did you got promoted Mr. Fraudia, its Jan. http://www3.pak.org/gupshup/smilies/wink.gif

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