Bench time is every consulting firm's financial enemy. When consultants sit on the bench, the firm pays salaries without generating revenue.
The Cost of Bench Time
For a consultant earning $120,000/year:
- Daily cost: ~$460/day (salary + benefits + overhead)
- Weekly cost: ~$2,300/week
- Monthly cost: ~$10,000/month
At a typical billing rate of $200/hr, each bench day represents ~$1,600 in lost revenue.
Common Causes
- Project gaps: Time between engagements
- Pipeline mismanagement: Not enough work sold
- Skill mismatch: Available skills don't match demand
- Seasonal patterns: Industry-specific slow periods
- Client delays: Projects postponed or paused
Strategies to Minimize Bench Time
Short-Term
- Internal projects and training
- Business development activities
- Knowledge creation and documentation
- Cross-training for flexibility
Strategic
- Improve pipeline visibility and forecasting
- Diversify service offerings
- Build retainer-based revenue streams
- Develop contractor/flex workforce capacity
- Use PSA software for proactive resource planning
Healthy Bench Targets
| Firm Size | Target Bench % |
|---|---|
| Solo/Small (<10) | 10-15% |
| Mid-market (10-50) | 8-12% |
| Large (50+) | 5-10% |