Going freelance in training or HR – how much to charge

freelance consulting talking photoGoing freelance in training or HR – how much to charge

With organisations laying staff off HR and training are no exception. This leaves many to think about going freelance. Knowing how much to charge is one challenge. Often people in the consulting and freelance world under value their services, and equally purchasers are increasingly unrealistic about what they expect to pay.

Some time ago I was asked to present to a local CIPD group about ‘going freelance’ and in the course of that preparation it highlighted some important facts that all freelances should be aware of.

When setting your daily rate, you need to look at the wider picture rather than just a recovery of your ‘old salary’

Lets do some simple maths…
There are 52 weeks a year – you will want 3-4 weeks leave – that leaves 48 working weeks.

You need to account for admin – tax returns, marketing etc, this will leave you with 2-3 days to work a week – so that is 48*3= 144 working days. Marketing effort should not be underestimated – this included all unpaid time doing proposals, visits etc.

Now – rather than charge ‘by the hour’ and all of the timekeeping required to prove it – charge by the 1/2 or full day. Your market space and the way you deliver your services will dictate if this is possible or not.

So if you want an income of UP TO:

  • 100k – that is 100,000/144 or 695 a day
  • 50k – 350 a day
  • 25k – that is 175 a day

If you are going to charge by the hour,  remember that you need to cover other time you cannot sell – for example a one hour meeting means you cannot sell that day as a full day. Also invoicing for 1 hour of work takes the same effort as invoicing to 10 days.. so the cost of that must be taken into account.

Hourly charging

If you are looking to do hourly advice/ guidance, then charge for a package – say 50 hours over a year and invoice monthly. then all you need to do is keep a record of time used. The client can always add time if they need it. This is better for you and them in terms of cash-flow. professionals will charge up-wards of £100 (UKP) per hour – this is only £800 per day – don’t undercut too much (putting the competition into a war on price will just undermine the industry and make your business unsustainable – look what happened in the IT training sector – encourage people to buy on quality and service) – value yourself and what you can offer.

You get the idea – remember of course that you will now need to pay for any training you need, equipment, internet connections etc – so these can easily mount up – do not undersell your self – set your price and be proud of it!

Useful references include:
Trainerbase purchasers 1
TrainerBase purchasers 2
Trainingzone article
TrainingZone article
HRZone article
Trainerbase article
Going Freelance
Mike
first published Jan 2008
Updated January 2014

Management and Leadership development are importent to you and of course to the team here at RapidBI. We hope you find this information valuable, if you do please tweet or facebook like this page. Thanks

Check Out Mike Morrison's Book on Organizational Development – Theory and Practice, for tools and tips on developing organizations, managers and leaders on Amazon and Kindle

Read more management articles from the team


 

Related Posts Plugin for WordPress, Blogger...
About Mike Morrison

Mike Morrison is a consultant and change agent specialising in developing skills in senior people to increase organizational performance.
Mike is also founder & director of RapidBI, an organizational effectiveness consultancy.

Comments

  1. RT @revlearning: RT @rapidbi: New Blog post Going freelance in training or HR – how much to charge …

  2. RT@rapidbi Going freelance in training or HR – how much to charge: Many think about going freela..

  3. Heather Townsend says:

    RT @rapidbi Going freelance in training or HR – how much to charge

  4. VaStrat-GeorgeTaylor says:

    Going freelance in training or HR – how much to charge …: With organisations laying staff off HR and training ..

  5. bobriensan says:

    RT @rapidbi New Blog post Going freelance in training or HR – how much to charge …

  6. RT @rapidbi: Going freelance or doing private work in training or HR – how much to charge? – blog post –

  7. RT @rapidbi: Going freelance or doing private work in training or HR – how much to charge? – blog post –

  8. RT @SharonGaskin: RT @rapidbi: freelance or private work in training or HR – how much to charge? –

  9. RT @ClareEvans: RT @rapidbi: Going freelance or doing private work in training or HR – how much 2 charge? –

  10. HR Webinars says:

    I really enjoyed this post. You describe this topic very well. It is key to have a full-service HR employment law training and consulting firm specializing in HR Training, Seminars on employment law, HR compliance training and sexual harassment prevention to train employees in any field. HR Training is available for employment law HR Training on the federal and state employment discrimination laws. It is vital to have a company with a high level of expertise in HR Training, combined with dedication to personal service. Your managers and employees will rave about how engaging, interactive and informative employment law HR Training seminars. Some firms even offers drafting and review of employment law policies and employee handbooks. HR Training seminars are also available for conducting investigations including sexual harassment prevention and discriminatory harassment workplace investigation training.

  11. Useful Blog post: #rapidbi

  12. Useful Blog post: http://t.co/Kw2mHVpW #biz

  13. Useful Blog post: http://t.co/Kw2mHVpW #biz

Trackbacks

  1. Twitter Comment


    RT @rapidbi: New Blog post Going freelance in training or HR – how much to charge [link to post] …

    Posted using Chat Catcher

  2. Twitter Comment


    RT @rapidbi: New Blog post Going freelance in training or HR – how much to charge [link to post]

    Posted using Chat Catcher

  3. Twitter Comment


    RT @revlearning: RT @rapidbi: New Blog post Going freelance in training or HR – how much to charge [link to post] …

    Posted using Chat Catcher

  4. Twitter Comment


    RT@rapidbi Going freelance in training or HR – how much to charge: Many think about going freela.. [link to post]

    Posted using Chat Catcher

  5. bobriensan (Barbara OBrien) says:

    Twitter Comment

    RT @rapidbi New Blog post Going freelance in training or HR – how much to charge [link to post] …

    Posted using Chat Catcher

  6. Twitter Comment


    RT @rapidbi: Going freelance or doing private work in training or HR – how much to charge? – blog post – [link to post]

    Posted using Chat Catcher

  7. Twitter Comment


    RT @rapidbi Going freelance in training or HR – how much to charge: Many think about going free.. [link to post]

    Posted using Chat Catcher

  8. Twitter Comment


    RT @SharonGaskin: RT @rapidbi: freelance or private work in training or HR – how much to charge? – [link to post]

    Posted using Chat Catcher

  9. Twitter Comment


    RT @ClareEvans: RT @rapidbi: Going freelance or doing private work in training or HR – how much 2 charge? – [link to post]

    Posted using Chat Catcher

  10. @Roundtableguys Going freelance in HR or training

  11. Blog article – Going freelance in training or HR – how much to charge?

Speak Your Mind

css.php