From what I can tell there are just a few sensible ways to pay a professional services worker:
- By the hour on billable client work
- By the hour on non-billable work (process improvement)
- As a % of billed project work (sales)
- Fixed fee for bringing on new consultants
- Fixed Salary
And metrics at play that would allow you to build a model are:
- Billable hours
- Hourly bill rate
- Total billed on project
- Number projects
- Wage Costs
- Number billing consultants
- Margin on work
I want to be able to get paid for all of these methods but the company has to first determine how all of these options work such that the company can continue to grow rapidly and sustain its growth. No small task but I hope to continue to think about and develop a formal, flexible software model for this.
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