MarginWorkshopGrowth & Organization
First Manager / Working Foreman Break-Even
Find out when hiring the first management layer or a working foreman actually pays off.
Pays off$35,000 net annual value
Value of owner time freed$100,000
Break-even hours/week (hours only)13.0
How we got here
- Value of time freed = hours × value × weeks = 20 × $100 × 50 = $100,000
- Net annual value = time freed + capacity value - manager cost = $100,000 + $0 - $65,000 = $35,000
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Next Decision
Based on your results, these related decisions are available.
- Management Span of Control CostSee how many crews this manager can supervise before spreading too thin.
- Revenue Required for Next Management LayerSee exactly how much revenue growth justifies this hire.
- Management Overhead Introduced by GrowthSee what this hire structurally adds to your overhead per billable hour.
Want to Learn More?
Methodology
Formula: net annual value = (owner hours freed × freed-hour value × weeks) + (additional revenue capacity × contribution margin) - manager cost.
Assumption: additional revenue capacity defaults to zero, hours-freed value alone is usually the primary case for this hire.
Limitation: for supervising multiple crews at once, see Operations Manager Break-Even instead.