Everyone Loves a Gross Margin Report

is a handy guide that helps analyze our staffing firm’s profitability and forecast future revenue. It is a very important tool if checked regularly because the information can help us make adjustments to ensure good profitability. Gross revenue is one thing but the true bottom-line is profit.
The Gross Margin Report should be analyzed from a number of perspectives. For example, when calculated by customer we can see which of our clients are the most profitable. If you simply look at highest revenue, you may be missing the fact that one of your smaller customers are producing more revenue after costs.
Another great perspective is by employee. Which employees are the good producers? If you are processing credits because of low quality work or are lowering rates because of client dissatisfaction with the employee, it is good to know. On the other hand, well-liked employees that are producing nice profits may be worth a raise or some other benefit in order to keep them loyal and happy.
What about internal employee productivity? When the gross margin report is produced by consultant you can determine which of your internal employees are yielding the most profitable placements. Are they reaching for low hanging fruit just to say they made a placement? Is your placement leader really your “highest producer”?
Other great ways to review the gross margin data is to procure the numbers by: average gross profit $ per hour;