Employees-Billable hours per week?

[dlowe93]

This is mainly aimed at the members who have employees, but feel free to chime in.

My partners and i are at the point where we will probably expand to include an employee or two by the end of the year. We are working on our budgets for Q3-Q4, and want to be able to factor in those costs.

My question is, approximately how many hours per week is it realistic to consider billable hours per employee? We have a good idea of what salaries are, and know what we can bill per hour, and need to find a common point among the two. I know that we need to factor in benefits, etc., as part of our employee cost, but don't worry about that.

I know as a self-employed person i usually average 25 to 30 billable hours per week, but is that realistic for an employee?

Thanks in advance,

d.

[TheOriginalFlashDavo]

I find it much easier to use contractors and freelancers. I have a couple of regulars, former colleagues from a previous job, plus there are plenty of other good people out there. I then just scope each job with them, they give me the hours and rate for their time which I then add to my time on the project, and there you have the final cost to the client. With no overheads to pay such as holiday pay, benefits...etc it works out much more cost effective.

Not possible for you?

[OddDog]

I get from 30 to 60 billable hours per employee.

I would suggest you use a minimum of 30 for budgeting.

Also look at the posibility of bonuses for extra hours billable. Do 55 hrs a week, get the bonus per hour*25.

hope that helps.

[dlowe93]

Originally posted by TheOriginalFlashDavo
I find it much easier to use contractors and freelancers.

Not possible for you?

That's how we are doing it right now. There are some large, long-term projects coming up and it might be more effective to to hire than pay out freelance rates for 6-8 month projects. Still, that's another mouth to feed...

Patrick, how do you figure 50+ hours per employee per week? Is that just figuring billable hours across multiple projects, or is that true attorney-like hours of overtime?

Funny, when i posted this i figured that Dave and Patrick would be the first to reply. Thanks guys.

Although Hurricane should be along soon. What time is it in Sao Palo?

d.

[TheOriginalFlashDavo]

Originally posted by dlowe93
Funny, when i posted this i figured that Dave and Patrick would be the first to reply. Thanks guys.

(although I shouldn't have been - I'm finding everything I can to stop from doing an essay I have due next week!!)

And sorry I can't help you with more employee specific info. My company has only ever been a "bit on the side" for me next to my full-time gig, and with Uni part-time as well it's getting less and less of my attention.

For a project of the size you mention I can understand why you're investigating.

Good luck.

[OddDog]

as project deadlines come up we do more hours of work a day.

our clients realise that there changes toa project cause delay and increased hours of work. i just bill them.

like attorneys, well i guess. never stayed up late to finish a project deadline ?

[monsterfx]

I know the ad agency I used to work at wanted people to be at least 85 - 90% billable, which works out to 34 - 36 hours/week.

For what it's worth...

monster.