Compensation Rates are a new concept in HoudiniEsq 2.0, designed to help you determine how to adequately compensate your employees for time billed and collected on. Staff Compensation looks at the total amount of Events billed for a particular Invoice against it’s payment received, and allows you to adjust their percentage (or flat amount) of pay according to the rate set when adding them as a Member to the Matter.
To set up Compensation Rates, you will need to be an Administrator. When logged into HoudiniEsq 2.0, navigate to the Settings Dashboard. Select the Staff option, and then select a specific user. Then, click the “Pay” option at the top to show their current Compensation Rate entries. Clicking the (-) icon next to a currently entered Compensation rate will remove it.
This will also allow you to create a new Compensation rate with the (+) icon at the top right. You can select a currently defined rate from the dropdown, or add a new one by entering the value and pressing the Enter key. Then enter the amount, either as a static dollar value or a percentage using the toggled checkbox. Once finished, click “Add Compensation Rate”. Once finished, click Done. Clicking Cancel will return to the Compensation menu without adding any new rates.
When Staff have Compensation Rates set up, these can be applied by adding them as a Matter Member. Select the Compensation from the appropriate field when adding the Staff to the case.
You can also, as always, add a nw Compensation type on the spot by entering the value in the field and pressing Enter.
Compensation can be tracked in the Reports section using the Compensation dashboard. Select the Reports section at the top right of the interface, and then select “Compensation” from the list below.
This view allows you to sort by Staff, Matter, Date or Invoice Number using the options at the top right. Additionally you can filter for a specific date range, as well as do a general search for a specific entry.
In order for a Compensation entry to be shown in this dashboard, the following criteria must be met:
- Paid invoices only. Payment must have been received in the form of a fees earned or payment to be shown on this report.
- Invoices with billable events only. All compensation entries are made for invoices which have billable events, not expenses.
- Payments made cover expenses before compensation. For example, an invoice has $500 in Events, $400 in Expenses and is paid in full Your Compensation rate is set to 50%, so you will only receive $250 of the payment as the rest must cover the incurred costs. If the invoice is not paid in full, any payment entires that do not exceed the amount in Expenses will show as $0.00.
- Staff must be a Member of the Matter. As noted above, in order to properly set the compensation rate, you must add the Staff to the Matter. Keep in mind that if you created the invoice, and received the payment already you can add a Member and define the rate, and the report will generate their compensation without having to re-apply the payment.
Also, keep in mind this report only pays attention to the amount billed versus the payments received, and not the actual time billed by each staff. If one attorney bills 20 hours and another bills only one, they will still receive compensation according to their rates. This is not the performance report, although you can certainly use it in tandem with that report to help determine how to optimize your staff’s workload.
Keep in mind that this article and report are subject to change as we continue to refine the app. If you have any suggestions feel free to email us!