TOP 5 metrics to follow for staffing that increases your profitability
Agathe Placet
Content manager
March 16, 2023
4 min
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Your staffing is the best ally of your profitability! You still need to have a Staffing software that allows you to track the metrics that are essential to optimizing your margins and reducing your costs (regardless of your billing method). But what are these key indicators? Discover the 5 metrics that Napta recommends to you to maximize the profitability of your projects and your business.
Everyone uses TACE and TACI to manage project planning on an ongoing basis and according to needs.
But are you thinking about following the forecast closely?
Visualizing the teams' TACE over several weeks or even several months allows you to:
And therefore to react if there is a need for recruitment before facing the wall and no longer having enough resources to meet all your opportunities. Predicting the repositioning of your teams prior to their availability directly in your staffing software allows you to perfectly control your profitability.
This metric represents The gap enters Expected times by the manager on a mission and The time actually charged by the collaborators. Many staffing managers realize that managers tend to always make more requests on the staffing tool (in terms of JHs) than what is really needed for a project. (about 10% more). This then represents A loss of profit And so a loss of margin, since you could have put this 10% to good use on another project (and therefore, bill them to your customer). Allow managers to access this data via Staffing software, will be of great help to help them better calibrate their needs!
This data allows visualize a type of shortfall: the one linked to the intercontract. When an employee is not Not mobilized on a project, you lose turnover. To know how much it costs your company, you must then look at the number of days when the collaborator is not positioned on a project and multiply it by his CJM.
It's scary isn't it?
To reduce this cost and maximize your profitability, adjust your schedules in advance and anticipate mission outings to limit the periods of inactivity of your teams.
Do you want to limit intercontracts and take advantage of incompressible periods? Discover the replay of our webinar on the subject, in collaboration with Vendredi: Watch the replay
This metric is easy to calculate: all you have to do is divide the turnover generated by a project at the moment T by the number of JHs allocated to it. Thus, you get essential information: The price you charge your customers for a day of work. By following this metric and comparing it to the costs associated with your project, you adjust and pilot your project teams. The aim is to guarantee the success of the mission on the one hand, by mobilizing consultants with a sufficient level of expertise, and to have the best possible margin.
At Ekimetrics, managers are encouraged to monitor this metric closely, throughout the project. They adjust the teams as they go along to guarantee the largest margins with the least possible expenses.
En package mode, this data allows you to closely monitor the consumption of the budget allocated to a missionn, as the water goes by. Make sure that the margin compared to the budget envelope sold is in adequacy with the rate of progress of the mission. It is an important follow-up to know if your budgets are correctly established from the start of projects and to be able to adjust them. One Staffing tool is ideal for meeting this challenge and monitoring your budgets closely.
The staffing tool helps you track these metrics that play a very important role in increasing your profitability.
Do not miss out on the progress of your projects and be in a position to make strategic decisions adapted to your profitability!
In addition, a Staffing software as Napta offers you a 360 vision to analyze the forecast and the real, you will be on the lookout for the slightest deviation to stay in line with customer requests.
And finally, optimize your time and that of your employees to analyze and reduce intercontracts, mission entries and exits and transform them into booster of your performance and your profitability.
Do you want to go deeper into the subject? We have lots of resources at your disposal to help you go further.
In addition to this subject, find our white paper “What metrics should you follow to properly manage your staffing and improve your decision-making?”.
Also discover our guides, templates and checklists in the Resources tab.
See you soon at Napta!
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