Employee Finance Wizardry

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

What you’ll be able to do after one hour

• Calculate Total Compensation for your firm — the Core-plus-Additional number — and see the gap between base pay and your actual labour cost.
• 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 binary choice every owner eventually 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.