![]() ![]() I could go on a lengthy rant about why I don’t think trying to calculate net-margin on projects and clients is a worthwhile pursuit. This usually happens when someone is trying to work backward from project-costing to net-profitability. I see this most often when questions about overhead and billable capacity come into the fold. In my experience, most of the confusion around what to include and what not to include in employee cost calculation comes down to not being clear on how this cost-per-hour number is going to be used (and what questions it’s going to help answer). Why do so many people calculate employee billable cost-per-hour the wrong way? Calculating Gross Margin on Projects or Clients.Using Employee Cost Per Hour In Your Agency.The Steps to Calculating Employee Cost-Per-Hour in Your Agency.Fully Loaded Employee Calculator – The Method.I want to help you understand how to calculate this important metric in the different contexts you might encounter in your agency. That’s why I’m writing this guide to give you a clear answer on the cost of an employee. So we’re helping you answer how much does an employee really cost your agency. There’s a lot of mud in the water, and you’ve probably read a lot of conflicting information on the subject. This is our 2023 employee costs calculator. What should and shouldn’t be included in an employee cost calculation? Tip: If you just want to try out the employee cost calculator, it’s right here. ![]() ![]() What about employees that are part-admin and part-billable? What about benefits and insurance? Production software? You can understand the actual cost is very different than the hourly wage. Should I include overhead in an employee cost calculation? What about worker’s compensation? State unemployment tax, social security, 401k? Should a fully loaded true cost of employee calculation be based on their gross capacity or just their billable capacity? The ultimate question we’re all trying to answer is – how much does an employee cost per hour? Or How much does having an employee cost? ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |