Should we Count the Full Billed Hours Toward Efficiency When a Tech Finishes Early?

A Contractor University Member recently utilized the Ask-The-Expert Q&A feature within the member dashboard by submitting the following question and received the response below.

Contractor Question:

“We’re reviewing technician efficiency. Should we account for when a flat rate task is completed in less time than estimated? If so, what’s the best way to track it accurately?”

Contractor University Expert Response:

“Great question.

When it comes to efficiency, we look at hours billed versus hours worked. For example, if the flat rate task is billed at 2.5 hours, even if the tech completes it in 1 hour. That means the tech is operating at 250% efficiency on that call.

We track efficiency based on billed hours, so yes, we count the full 2.5 hours. In fact, in many cases, I pay techs this way—the faster they complete the task, the more efficient (and potentially more profitable) they are.

Of course, if the job isn’t billable, the tech doesn’t get credit toward efficiency.”

Contractor University members can click here to log in to their member dashboard and submit a question through the Ask the Expert portal.