Dischino, I do think that her compensation is probably appropriate, but I need to correct your numbers. It is not a 12K raise. When you go from a consultant to an employee, you need to account for the benefits a consultant does not get. Add in %20 for payroll taxes, unemployment taxes, workmans comp. Add in 10-30% for health insurance, depending on how many dependents she has. Add in %15-20% for 401k contributions.