Compensation for bringing work to the company
Compensation for bringing work to the company
(OP)
Hello all,
You were invited to join a firm and you know that you will bring work to this new company. What is a reasonable compensation for bringing work that you should ask for. The amount of work you might bring is around your annual salary to possibly twice that.
It is my situation and would like to get some ideas from you. Thanks
You were invited to join a firm and you know that you will bring work to this new company. What is a reasonable compensation for bringing work that you should ask for. The amount of work you might bring is around your annual salary to possibly twice that.
It is my situation and would like to get some ideas from you. Thanks





RE: Compensation for bringing work to the company
Following that scheme, let's assume your annual salary is $100,000.00 and you bring in $200,000.00 worth of revenue. Your bonus would be $4,000.00, or approximately (based on a bi-weekly pay period) one (1) gross pay cheque.
If you are brought on as a partner, the percentages go up appreciably, but people aren't in the habit of gifting portions of their company away, so you would probably have to buy your way in. Then you need to make a whole pile of bonus money just to recover your investment.
Based on my experience, treat "new business" bonuses as mere milk-money unless the other guys are serious about a deal sweet enough to be of benefit to you.
RE: Compensation for bringing work to the company
RE: Compensation for bringing work to the company
<edit> removed sentence due to misreading </edit> Is it expected that you will bring in new work? If so, the employer may already expect it as part of your job, and thus it's already reflected in your salary.
If you do not already have a negotiated compensation based upon sales or project income - I am betting your employer considers that your job and what your current salary already covers.
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NX8.0, Solidworks 2014, AutoCAD, Enovia V5
RE: Compensation for bringing work to the company
Serious employers reward performance-based bonus schemes that place due consideration on the value of repeat business and high quality work. In other words, "repeat business" is just as good as - or better than - "new business". Employers either value that, or they don't. The ones that don't are the ones that offer the "new business" bonuses.
To me, it is completely perverse - and disturbingly symptomatic of what engineering has degraded to - to base the incremental value of an employee's contribution on new work that hasn't even been done yet. It is, in part, for this reason that I left a management position in a company in which I refused to participate in the discussions concerning year-end bonus allocations unless they were directly tied to performance.
RE: Compensation for bringing work to the company
Job security is a myth. I have seen employers "gift" their employees the pink slip ( layoff) as soon as work started going down.
RE: Compensation for bringing work to the company
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NX8.0, Solidworks 2014, AutoCAD, Enovia V5
RE: Compensation for bringing work to the company
It is better to have enough ideas for some of them to be wrong, than to be always right by having no ideas at all.
RE: Compensation for bringing work to the company
Asinine! really! what is, then, the difference between you who does the engineering and the other one who does engineering just like you but also because of his connections brings work to you and keeps you engineering stuff. Salary doesn't change with how much work he brings and bonuses are not guaranteed. A company I previously worked for lost most of its work when a couple key guys left and its staff reduced to the third.
RE: Compensation for bringing work to the company
RE: Compensation for bringing work to the company
that is a good reply. thanks
RE: Compensation for bringing work to the company
i'd consider my anticipated margin for that type of work, the probability of actually obtaining that margin especially with a new client, and especially how long it'd take me to complete it and invoice it; i'd wonder about new client's payment schedule and reliability for payment, i'd consider my business prospects for the next year and the current twice per month overhead demand.... and pretty soon 1x to 2x annual salary isn't looking super strong. but if I needed you for my current workload, i'd hire you without the 100k or 200k prospect.
now, if I could turnaround your annual salary in a month....now, you're talking....
RE: Compensation for bringing work to the company
Bringing in work that is unprofitable isn't a help at all. You should never reward revenue only- even in salespeople- or they will simply buy you work with your own money.
I've brought in plenty of work and received no special compensation for it. It's part of every engineer's job to be looking after the business- keeping up with contacts looking for potential work, both external to the company and with former customers.