12 April 2022, Sydney / Australia, Source: Tribes.AI
The economic impact of missing or inaccurate timesheets has been estimated at US$50,850 per employee per year or US$9.1 billion per day for the professional services sector across the US, the UK and Australia.
The estimates are based on government figures combined with a survey of over 1,200 managers in the sector - 90.5% of whom agree that billable hours are missing and estimate the loss at an average of 21.5%. This means that globally, close to 1 in every 5 billable hours are not recorded!
These results impact millions of businesses across the globe representing a significant chunk of GDP - 2.5 million businesses in the US worth 13.1% of GDP, 1.3 million businesses in the UK worth 15.0% of GDP and 949,000 businesses in Australia worth 9.8% of GDP.
The Tribes.AI research estimates the total economic damage at US$ 9.1 billion across the surveyed countries which breaks down into US$7.5 billion per day in the US, £1.3 billion in the UK and AU$377 million in Australia. These figures are similar to a US$8.8 billion figure for the US, published in HBR in 2015, however, this new report covers a larger sample of managers across more countries including a more accurate estimate of average hourly rates as well as a breakdown by major industries.
According to the managers surveyed in the report, the industries that lose the most billable hours are ranked as follows:
- Advertising & Marketing
- Banking & Insurance
- Websites & Hosting
- Real Estate (Residential & Commercial)
- Software, IT & Support
- Lawyers & Legal Services
- Construction & Engineering
- Consulting & Accounting
- Photo, Film & Video
- Other professional services
Download the full report for additional data on average hourly rates and billable utilization rates as well as major pain points for managers and business owners all broken down by country and industry.
Tribes.AI develops a next-generation activity-based time tracking (ABT) platform that delivers accurate timesheets without human error to find unbilled hours. The tool also makes the critical link between time spent and impact on revenue to generate smarter, more meaningful team productivity metrics such as effective hourly rate by employee, team and client.
Initial trial feedback:
"This solves a big headache. Literally every agency I've worked with has struggled to get people to fill in timesheets- employees hate doing it, finance people hate chasing staff and CEOs/CFOs hate incorrect data".
Christian Bartens, Co-Founder of Tribes.AI said:
“The idea came from starting and running Datalicious, a marketing analytics agency we sold to Equifax. The initial team worked well, but as we grew past 50 staff and expanded across the globe, it became really challenging to understand what different parts of the team were working on - and whether their priorities were right. Now that working from home has become business as usual, tools such as Tribes.AI can genuinely help focus and bring remote teams together.”