Option 2: Setting up Staff Rates
If your Rates differ depending on the staff person performing the work, then setting up Staff Rates is the best way to structure the Rates in your system.
Please review this article to learn the steps to set up Staff Rates, as well as building Estimates at the Staff level.
Step #1: Create Rate Categories
The first step is to create your Rate Categories. There is no limit to the number of Rate Categories you add. Perhaps you need one for Standard work, one for Non-Profit, and another for Rush work.
Begin by going to Admin > Rate and Staff Management > Rate Categories.
Note that access to the Admin area is user permission based. Speak to your in-house fp. Administrator to have your permissions changed.
You will land on the Manage Rate Categories page. I already have a few Rate Categories in place, but let's create another one to use for work with non-profit clients. Fields marked in blue are required.
- Type in a name for this new rate and optionally add in any description. This description would only be seen by your internal users - it would not display on Estimates or Invoices.
- Enter default costs and mark-up. These will apply to any new Expenses and Services that you create after the creation of this Rate Category. You will still be able to change these values, but these defaults will be in place to save you time.
- By default, new rates you add will be already marked as Active - meaning you can use them for creating new work immediately. Un-check the Active box as needed.
- Choose to make this rate your Cost Rate - aka, what it costs you to provide this work. To learn more about cost rates, please review this article: Setting Individual Staff Costs & Creating Cost Rate Card. You can also choose to make this rate the Default Rate. Meaning that this rate will be selected when you create new work in your system. You will be able to make a different selection as needed.
Click Save when ready.
Once you save your changes, the new Rate Category will be listed. To edit this rate, or any other, click on the name, and the top portion of the screen will populate and be editable.
Step #2: Enter the Rate Values Across Your Services & Expenses
All your Internal Services ($$/ hour), Internal Expenses ($$/ units sold) and External Expenses (percentage mark-ups) will be listed here, along with any of your active Rate Categories. Leave the default rate and mark-up values, or type in other values of your choice. Click Save (found at the bottom of the page) when done.
Note that when staff track time, so long as you follow all the steps within this document, it is the individual Staff Rate that will be used for the billable value of that Timesheet. However, we still recommend putting values here at the service level - this really covers you in the event that someone builds an estimate by service, or a staff member is added and they are not properly set up with staff rates. Consider this a bit of a fallback.
Step #3: Make sure that the System Preferences are Set Correctly
Choose the tab called Work. The boxes for Estimate By Roles and Role Rate need to both NOT be selected.
Click Submit - found in the bottom right of page - when done to save any changes.
Step #4: Add in the Rates for Each Staff Person with a Staff Rate
You will land on the Admin Staff List. Click the Rate button for any staff member. Let's pick Edard from our list.
When you pick the Rates button beside a staff member name, you will land on the Manage Staff Rates page. All of your Rate Categories will be listed here. As you want to use Staff Rates, this is an important page to get right for each staff member.
The values in brackets are the Service Rates you set-up in Step #2. The fields to the left of the Service Rates is where you need to add or edit Staff Rates. If that field is blank, the Service Rate (in brackets) will be used. Keep the field blank if you want the Service Rate to be used.
In my example, when any Rate Category is picked, I want Edard to bill out at a different rate than the Service Rate - specifically if he is working on Design, or Copywriting/ Editing.
I can just type the values I want to be used when Edard does this kind of work, into the appropriate fields. Where I have not entered a value, the bracketed value will be used.
Click Save in the bottom right of the page when done. Pick another team member from the left hand side, to make similar adjustments for any other team members.
Note that if a staff person needs a different rate across the entire Rate Category, you can use the top row and Apply Rate button to quickly add values.
Just remember to scroll through your listed Services and Expenses, to blank out values where something should not have a billable value.
Step #5: Estimate at the Staff Level
When building your Estimates, select the staff person that will be working on each Service - otherwise the Service Rate will be used to calculate the value of the Estimate.
Above, we have created this Estimate using the Standard Rate, and picked Edard for these two Services. The hourly rate displayed is $115 for Copywriting/ Editing, and $125 for Design - a match for the Staff Rates we added for Edard on the Standard Rate Category, for these Services.
Had we picked a different Rate Category - such as the Rush Rate - the values for Edard, for these Services, would change accordingly.