No, because in our operating model, we don’t have staff “on the bench.” Your interpretation would be quite accurate for a typical professional services firm operating with a “bench model.”
I am simply trying to say that the reported number of experts is a good indicator of revenue, but the actual revenue is even stronger because these other variables also influence it.
Am I remembering incorrectly, but didn’t you at least previously have your own employees on the payroll as well, i.e., you also have a so-called bench in theory?
We have approximately thirty percent of our experts on our own payroll, but while on the bench, their salary is significantly lower than when they are on a project. When on a project, the salary is in the range of 8.5–9k EUR / month, while on the bench, it is 3k EUR / month. So yes, there is bench time, but a) its cost is considerably lower than in a “normal bench model” and b) the expert’s incentive to sell themselves into an extension or the next project is much stronger.
With twenty years of experience in professional services, my own rule of thumb is that our overall bench risk is on the scale of one-tenth compared to the “normal bench model.”
You can read more about it here: How does Witted Mavericks work? – Witted.com
Witted founder and former CEO @Harri_Sieppi was a guest on Salkkukatsaus this week, where in addition to his arresting life story, they discussed the founding of Witted and its long-term potential.
Discussion on the founding of Witted starts at 41:24 and Witted as an investment at 01:20:15. 