Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Interview Partners to connect and practice with!
Back to overview

What is ideal staffing rate of a consulting company ?

How can we calculate the ideal staffing rate of a company with following information :

- Number of consultants : 150

- TJM : 3500

- Rentability : 15%

2
4.7k
18
Be the first to answer!
Nobody has responded to this question yet.
Top answer
Vasilis
Coach
on Apr 10, 2017
x-BCG Dubai, x-Recruitment lead for BCG, Case Interview Expert (350+ interviews, 100% recommendation rate), Ops Manager @ Uber

Hello Anonymous,

This is a tough one. There is no ideal staffing rate really, since the difficulty and strategic importance of the project are crucial parameters in the staffing process. At BCG, we could overstaff a project that is very critical to us, in order to position ourselves better for future work. Similarly, we could understaff a project that we know is within our realm of expertise and would allow us to knock the ball out of the park without much effort.

Hope that makes sense!

Vasilis

on Apr 10, 2017

Hi there, you need a few more parameters to calculate that. Basically it is the ratio between the charged hours and the salaried hours. A consultant also needs time for continuous education, trainings, interviewing candidates, holidays. Usually it is around 80%. 

In this example, I think they wanted you to calculate the break-even point. If you have a consultant in France, starting level making 40kEUR let us just say, that means 167 EUR/day, let's assume 250 EUR with social expenses and miscellaneous. 

The contribution margin for each day on project is 15%*3500EUR=525 EUR 

Therefore if he is active at least 250/525=48% of the time, then the cabinet is not overstaffed. The staffing for the whole company is the weighted average of staffing rates. 

1
on Apr 10, 2017
I didnt get 15% in your calculation. Also if you assume a consultant costs 167 a day and paid 40 k, you assume that he is working 240 days and not 221. Why ? Many thanks
on Apr 11, 2017
The 15% was given by the person who asked this question, read the top of page. The numbers are arbitrary, what counts is the logic.
Similar Questions
Consulting
Stating your initial hypothesis
on May 18, 2024
Global
8
2.0k
Top answer by
Pedro
Coach
Bain | EY-Parthenon | Former Principal | 1.5h session | 30% discount 1st session
50
8 Answers
2.0k Views
+5
Consulting
Revolut Case interview
on Mar 01, 2025
Global
5
12.5k
Top answer by
#1 rated McKinsey Coach
358
5 Answers
12.5k Views
+2
Consulting
A&M PEPI Associate - Case Study & Excel Exercise
on Jan 25, 2025
Global
2
2.4k
Top answer by
Hagen
Coach
#1 recommended coach | >95% success rate | 8+ years consulting, 8+ years coaching and 7+ years interviewing experience
68
2 Answers
2.4k Views
How likely are you to recommend us to a friend or fellow student?
0 = Not likely
10 = Very likely
Thanks for your feedback! Your opinion helps us make PrepLounge even better.