Employee Finance Wizardry

Employee Financial Wizardry What your people cost, and what they return.

The founder who has more than five people on payroll and has never sat down and calculated what those people actually cost — Core plus Additional, loaded against available hours — or what each one of them returns relative to that cost.

The buyer — the incoming owner of a firm where labour is the biggest line on the P&L. You need to read labour the way a principal reads it: as a ratio between what you pay and what you sell, not as a list of salaries.

The appointed leader who is now responsible for a crew, a branch, or a department. You set utilization targets and need context of what profitable utilization (billability) actually looks like. You want confidence to hire with the clarity of capacity and return..

What you’ll be able to do after one hour

Calculate Available Hours per person and for the firm as a whole — paid hours minus time off, the number that matters for everything downstream.

Calculate your firm’s Aggregate Loaded Labour Rate — Total Compensation divided by Available Hours. The single number that lets you price, measure, and manage labour cost.

Use the four numbers that link compensation to pricing to margin — the billing rate multiplier on base and on loaded pay, the blended billability target, and the gross margin target on loaded labour. Know why they move together.

Understand the choice every owner faces in the hiring market — and how getting the four numbers right is what makes it a non-choice.

Finish the hour with Real Gross Margin calculable on your own firm. This course is where the concept from Business Finance Wizardry becomes a live tool.