Here, I discuss the strange dynamic whereby companies simultaneously de-value the knowledge and skill of their own employees, while valuing the expertise of outside consultants, even as they resent them. One reason for this resentment is their fees, and I discuss the reasons why consultants appear to earn much higher daily wages when compared to employees who do similar work. The simple reason is that the 'input variables' and the way they are calculated differ, appropriately, from those used in calculating wages for full time employment.
In summary, the prevailing myth that most consultants pocket humongous fees compared to full-time employees of similar status is just that - a myth.
