The "Labor Costs" feature allows you to define your hourly cost, which can be set individually for each workspace or project member. These costs are crucial for calculating team and project profitability.
This feature is available on the Premium or Enterprise plans.
How do I add Labor Cost:
Labor Costs are directly associated with your team members and can be specified in two places:
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For individual workspace members
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For individual members of private projects
Adding Labor Cost for individual workspace members:
Adding Labor Costs for individual workspace members is done on the Workspace Members page, here's how:
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Navigate to this page by clicking on Members in the sidebar.
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On this page, you can add in the Labor cost for a user under the Cost column as shown in the screenshot below:
Adding Labor Cost for individual project members:
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Open a Project from the Projects page
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Click on the “Team” tab.
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Define Labor Cost under the 'COST' column for individual project members as shown in the screenshot below:
Useful tip: The Profitability Report will use the Project User Labor Cost when available. If the Labor Cost isn’t set for the Project User, it will utilize the Labor Cost set on the Team page.
Updating labor costs
Labor costs utilize a similar system as the Historical Billable Rates feature. When updating a labor rate you'll be presented with a window (screenshot below) that will contain the following options:
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Apply the rate change for all data. Selecting this option will apply the new rate on any time entry associated with the labor cost.
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Apply the rate change starting from today. This is the default option. Use this to preserve the previous labor cost that was set.
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Apply the rate change on a specific day (past or future). Use this to align changes with a specific date in the past or future. For example, for an employee that received (or will receive) a raise.
❗ If a specific date is selected, the new rate will be applicable to all Time Entries starting from 00:00 of that day, based on the admin's timezone. For more technical details related to rate changes, click here.
Frequently Asked Questions
Who can enter labor costs?
Labor costs can only be defined and viewed by Administrators and Project Leads (role available only on the Premium plan).
How do I know which labor cost will be applied?
If a user has a labor rate entered on both the workspace level and the project level, the system will always default to using the most granular/specific rate, i.e. the labor rate entered on the project. We use the same logic for billable rates.
Can I assign Labor Costs to user groups?
No, labor costs can only be assigned to individual team members, similar to Billable rates.