If your Rates differ depending on the Role of the staff person, then setting up Role Rates is the best way to structure the Rates in your system. This works only when your staff members can be given a single, defined Role - the naming of Roles is up to you, but there is a one-to-one relationship of a staff member to a Role.
Please review this article to learn the steps to set up Roles Rates, as well as building Estimates at the Role 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
You will now need to add the Rates for each Service and Expense you offer. From the Admin menu choose Rate and Staff Management > Service Rates & Markups.
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
Make sure your system is set up to use Role Rates. From the Admin menu choose System Set Up > System Preferences.
Choose the tab called Work. The boxes for Estimate By Roles and Role Rate need to both be selected. You will also want to select the Staff Roles option, so that you can associate staff members to a Role name you create.
Click Submit - found in the bottom right of page - when done to save any changes.
Step #4: Create Roles in List Maintenance
Staff members can each be associated to one Role. To create Roles, navigate to Admin > System Set Up > List Maintenance.
Choose the option of Role on the left. Use the Add New button to create new Roles. Drag and drop to re-order Roles, or choose to order alphabetically. Click Save when ready.
Note that the role of "No Role" is a required system setting and cannot be removed. You can choose to make it Inactive, should you not want it to appear in your main system as an option.
Step #5: Assign Staff to a Role
To begin to associate each member of your staff to a Role, navigate to Admin > Rate and Staff Management > Staff, Staff Rates and Permissions.
You will land on the Admin Staff List. Click the name of staff person that needs a new or different Role assigned.
Choose a Role from the dropdown menu. Click Submit to save your changes. Repeat for other members of your staff as needed.
Step #6: Enter in Role Rates
Now that you have added in the Roles and assigned a Role to each staff member, you can enter the hourly, billable value for each Role. Navigate to Admin > Rate and Staff Management > Role Rates
Check that the Individual Staff Rates Match the Role Rates
You will need to make sure that your Staff Rates match the Role Rates for the Role of that staff member. Navigate to Admin > Rate and Staff Management > Staff, Staff Rates and Permissions.
Click the Rate button for any staff member. Let's select Natasha, She has the role of Senior Designer.
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.
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. As you want to use Role Rates, and Role Rates need to match Staff Rates, this is an important page to get right for each staff member.
Senior Designers (like Natasha) have a rate of $200/hour when using the Higher Rate Category; $80/hour when using the Non-Profit Rate Category; $165/hour when using the Rush Rate Category; and $150/hour when using the Standard Rate Category.
Be sure to scroll through your listed Services and Expenses, to blank out values where something should not have a billable value.
When done with your first team member, click through any other active team members listed on the left, to ensure the Staff Rate fields match the Role Rate of Role for that person. Use the Save button found in the bottom right of the page to keep your work.
Step #7: Estimate at the Role Level
When building your estimates it is important that you select the Role that will be working on each Service so that the correct rates are pulled into the Estimate - otherwise the Service Rate will be used to calculate the value of the Estimate.
Above, we have created this Estimate using the Rush Rate, and selected the Role of Senior Designer. The hourly rate displayed is $165 - a match for the hourly Rush Rate value for this Role.
Had we picked the Standard Rate instead, the value per hour for a Senior Designer changes - again a match for the hourly Standard Rate for this Role.
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