These include any working hours that you can bill to a client (consulting, work on their projects, research, client visits, client correspondence, etc.). Offshore outlay: Simplified analysis on Billable and non-billable time in offshore. What Is the Staff Utilization Rate in Consulting? And if so, how long should that last? The methodology for calculating this is fully explained here . I find that free services have no value, however and initial meeting in which some very basic and high level “free” advice can help develop some good will and build a trust based relationship. You can be quite sure most people will agree the value of a new BMW is more than $5k. Never do consultancy for free! The other 67% of your time will be spent building your business, marketing yourself, speaking, etc. Environmental Consulting Respond to RFPs and proposal requests faster (and minimize non-billable research hours) with aggregated standard data layers, count summaries, and permit pathways Create a programmatic templated deliverable for desktop reports Thank you for sharing. 1,800 billable hours in a year Most consulting firms estimate around a 90% utilization annually. For example, public accounting and legal services firms also traditionally bill by hours of staff time.Â. Now, if you work for a national consulting firm with a huge overhead, you can get $75/hour for an entry level tech with zip for brains. No part of this site or its content may be re-used without prior written permission. Hourly rates vary across industries, from $28/hour for the Legal field, to $11/hour for the Customer & Administrative field. This is also the time that most law firms spend a lot of energy measuring and tracking. And what if you don’t know exactly what the % of change is going to be you bring to a company? My current resume description of my environmental consulting experience is basically 2 bullets: Maintained over 85% full-time billable hours through processing and interpreting environmental field data for environmental monitoring Floor billing rates are typically expressed in hours – $50/hour, $500/hour. Across the globe there are several studies that over the years have confirmed the long working hours of consultants. If we have the chance to place our people on a project with billable hours, that d) A utilisation considerably lower than 100%. For example, environmental consultants are hydrogeologists, ecologists, anthropologists, civil engineers, etc. Above, in order to meet expenses, grow the business, and take time off, I would need to bill $94.20 per hour in order to sustain a consulting business. In the example above, I removed 80 hours of billable time, or two weeks’ vacation. Especially in firms with a strict up or out policy, reporting substandard levels of billable hours can be damaging to one's career progression. Fixed billable hours A year ago, I switched to consulting full time and joined MavenHive. If you charged your floor rate of $94.20/hour, even if you billed for an entire day (8 hours) for the conference, you’d only make $753 at your floor billing rate. Consulting can be a great way to fund a startup or make a bunch of cash. The most recent revision adds more to ceiling billing rates. Overall, the main purpose of environmental consultants is that they provide guidance relating to managing environmental risks to human health and the environment. Likely would make more money at a smaller consulting … If your contract is set up to pay you as you achieve specific milestones — say, completing one-quarter of the project or […] Our mission is to provide the highest standard of environmental consulting services to our clients. Privacy Policy, Compliance, and Disclosures, feel free to use this link to copy this Google Sheet for yourself, Alan Weiss’ excellent Value-Based Fees book, Transforming People, Process, and Technology, Part 1, How To Set Your Consulting Billing Rates and Fees. Oh sure, founders work 60-80-hour weeks, but not employees. Ceiling billing rates are typically expressed as percentages of fees or flat budgets. We offer hundreds of time tracking features, including an easy time tracker, dozens of reports, and integrations with your existing payroll and accounting software. Let me tell you a story that goes back to late 1993, which seems like an eternity ago, yet at the same time feels.just.like.yesterday. Environmental Field Tech $ 50.00. I’m in the beginning stages of putting my business plan together, and a big concern is my rates. We’ve assumed an 8-hour work day, but any owner of a consulting company will tell you this rarely happens. Remove more billable hours. If you don’t speak, the conference may or may not fill those seats. a) It factors in the additional benefits you’d get if you were in perm employment. I certainly can’t do FREElance anymore, so this insight is a great reference and reminder to not sell myself/services short. For example, let’s say I wanted to make a gross salary of $60,000 per year. This is my floor billing rate, the rate I must not bill under, or else I risk losing money and/or harming my ability to grow the business. By doing so, businesses have the opportunity to discover some interesting trends, in … Good analysis. Here’s what the hourly rates are for 8 prominent industries: Consulting hourly rates by industry Multimedia & design - $20. You should know what you’re worth, having performed the aforementioned calculations to determine the floor and ceiling, but propose comprehensive rates for the project. I had just moved to Charlotte and opened up our first branch office, mainly because my wife at the time Billable Hours – This is the time spent on a client’s case which can then be billed directly to that client. If you got 50% of ticket under your affiliate program (assuming 50 seats at $495/seat), you’d get $12,375. First, you need to know what your mandatory annual income is, the money you must earn in order to be able to survive and reasonably thrive. Here's how you can automate the calculation process and find out the exact amount you need to … We strategize. Value is perceived differently by different people.. not really, you’re talking about “perceived value”. Thus, a second-year consultant might be expected to carry a somewhat higher billing rate than a first-year consultant. 10 Great Jobs to Kickstart Your Career, Attorneys Should Follow These 5 Ways to Bill Clients Efficiently, Management Consultant Job Description: Salary, Skills, & More, Common Billing Mistakes by Legal Professionals That You Should Avoid, Jobs and Careers for Political Science Majors, 5 Strategies to Get Paid for All Legal Work Billed, Here Are Some Tips on How You Can Get a Job as a Consultant, Top Things to Know About Working in a Private Practice Law Firm, Career Information on Working at Public Accounting Firms, Education and training, including acting as an instructor for in-house classes, Prospecting for new clients and engagements, Conducting research related to practice development. (edit) someone else mentioned it but I failed to include initially. Read on: 43 Best Project Management Software and Tools Consultation and customer service can be charged if it is eating into your productivity. As a result, staff often feel pressured to overstate billable hours, with the inevitable consequence that clients become increasingly skeptical of bills that they think are inflated. Once, early in my career, I was a project manager on a billable project. In order to develop a fair ceiling rate, you must know and understand deeply the industries and companies you’re serving so that you know the economic value of the work you’re providing. Is there any value, added subtracted or otherwise, to giving the first consult free? Working 10-11 hour days every weekday is the bare minimum and when big projects come in the door, easily expect to work 70-80 hours for weeks or months on end. Don’t accept any project under that rate unless there’s some massive leverage that comes with the project, like the opportunity to move up the food chain somehow. Cons 1.) Wolf is part of a movement of small, flexible, responsive consulting firms that have been formed as a direct response to the unresponsive, profit-driven, aging consulting industry doing the same old projects the same old way. All of us had done our fair share freelancing and consulting projects. Utilization is the percent of billable hours compare to the total hours including admin, leave, and etc. Source(s): I just got off a project where a national firm of "employee owned consulting firm" types just got fired from a cushy contract with a … Some conferences are offering up to 50% of the ticket price as a commission in their affiliate program, so it’s reasonable to ask for that as your fee outright or in an affiliate program if you’ve got a great audience/community. A third example might be a graphic designer whose work increases website conversion from 2% to 5%. When contemplating offers from firms, ask questions to learn more about their billable hour policies and practices. 35% Annual non-billable hours (Based on maximum): 616 (1,760 x 0.35) Estimated time Using the process we discussed at the beginning, calculate the … In some cases, reporting time as unassigned bears a great stigma because it produces no profit or other benefits to the firm, so staff generally avoids it at all costs. Once you have your hours and the total amount you must bill, divide the two. Track where your billable hours leaks are in sales, project delivery, support and administrative management and plug them. Non-Billable Hours – While this is the It is not unusual for the top partner in a given consulting firm to bill at 3 times or more the hourly rate for the services of a first-year consultant. Billable hours are the hours that are spent on payable projects. but when there aren't billable hours (happens every Nov/Dec pretty much at this company) it gets old real fast. ... Billable hours is really the only thing that seemed to matter. This is really helpful! They assume 100% utilization, meaning every hour they’re clocked into work, they’re doing billable work. Additionally, each member of staff has an hourly billing rate reflects their job title and level of experience. Around 15% of consulting work for clients, chargeable hours, is in practice not billed to clients, finds a new study by London Business School and a software firm. If you’re billing a project with a fixed fee, decide how many hours it will take you to accomplish it, multiply times your hourly rate, and be sure to specify in your contract that the project is restricted to X hours, with additional hourly charges for every hour after that point. Great models, Chris. Yet others work at environmental consulting firms, or work alone as a consultant. Don’t forget things like time off. The Environmental Consulting industry is indeed a large industry and active in countries such as United States of America, United Kingdom, France, Germany, Italy, Holland, Switzerland, Australia and Canada et al. His work gets good results, he is funny and outgoing, and he is getting moved up the partnership track regularly. Title: Overhead Rates.xls Each member of staff must keep a detailed timesheet that breaks out their work hours by type of activity, client, and engagement. Likely would make more money at a smaller consulting firm. A free inside look at company reviews and salaries posted anonymously by employees. In late 1993, my 2-yr old environmental consulting firm… My wife works as a consultant for a medium-sized civil- and environmental-engineering consulting firm (about 50-60 employees). Average freelance and consulting hourly rates Consulting hourly rates by industry. by Christopher S Penn | Jan 22, 2018 | Advertising, Awakening, Business, Marketing, Money | 14 comments. Source(s): I just got off a project where a national firm of "employee owned consulting firm" types just got fired from a cushy contract with a company that I am associated with. Using non-billable hours As another example, say you know a particular method for looking at Google Analytics, a way that can instantly increase the ROI of a company by 30%. Notify me of follow-up comments by email. Cheers, NW (@Clermont1) – @teamclermont. Finding your ceiling requires you to ask, ask, ask your customers what the impact of your work will be, and/or asking peers, colleagues, or even competitors what results they’ve generated. Firms use a metric called utilization rate to judge the productivity of staff, and it often becomes a critical factor in decisions regarding compensation and promotion. What if you’re tasked with changing their strategy eg and you can at best guess what it will do but don’t actually know. Environmental Field Tech $ 50.00 Other Employees 1.5 x employee rate For expert testimony or attendance at night meetings the fee is $150.00/hour with a minimum of 4 hours required. That’s a gigantic difference, and it’s why you must find your ceiling as quickly as possible. Vanguard Environmental manages the regulatory compliance of more organizations than any other in North America. Social post ’ s say you have your hours and the environment are typically expressed as of..., post sales support, indirect hours, calculate project profitability, and.! Reminder to not sell myself/services short of billable hours, calculate project profitability, and business school lecturer I! Designer whose work increases website conversion from 2 % to 5 % website conversion, you paid. Billable work billable time, including me calculate project profitability, and you ’ a. 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