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Professional Service Firm
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We are a professional service firm, and struggling to get employees and managers, for that matter, to do anything "non-billable". We have tied to reviews, we have tied to performance, but when it come
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Professional Service Firm
posted at 10/5/2009 7:28 AM EDT
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Posts: 32
First: 6/10/2004
Last: 8/12/2011
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We are a professional service firm, and struggling to get employees and managers, for that matter, to do anything "non-billable". We have tied to reviews, we have tied to performance, but when it comes down to it, unless its billable time (our compensation plan) doesn't pay for employees to help out.
If you work at a law firm, (that's the closest example I can think of), how are you incentivised to hold those workships, write newsletters or white papers in your area of expertise. It's all non-billable marketing hours, but how are you incentivised to do such things?
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Professional Service Firm
posted at 10/5/2009 8:30 AM EDT
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Posts: 2146
First: 2/15/2006
Last: 9/14/2011
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Back in the day, there was a % of time (like 15%) that was okay to be non-billable. All of our performance was based off of 85% billable.
Based on the cyclical nature of our business, there were times where we were over 100% and others where we weren't even 50% billable. It was in those lower billing times that we were expected to do training/development/papers, etc.
Personally if it is an expected goal, it should be communicated and measured and be part of the review of compensation.
And those that did were rewarded with promotions, bonuses and pay increases. Those that didn't, stagnated and eventually left the firm.
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Professional Service Firm
posted at 10/5/2009 8:53 AM EDT
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Posts: 155
First: 8/24/2009
Last: 2/9/2010
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In my company I rarely bill by the hour. I prefer a multi-tiered approach with my clients that pays for different phases of the project with a measurable outcome. This works best for everyone and removes any stigma of what billable hours do.
The benefit comes when a project is finished earlier than anticipated, everyone is happy, and you get repeat business.
That may not help you unless your company is open to changing both its billing and compensation structure but I can assure you it is the proverbial win-win for everyone involved.
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