True Labor Burden Analysis: Technician vs. PM vs. Estimator
What You’re Really Paying for Each Role—and Why It Matters
Most restoration companies know their hourly wage rates—but very few know their true cost per employee. And when you're managing multiple roles like technicians, project managers, and estimators, failing to track actual labor burden can lead to underbidding jobs, overhiring, or mispricing services.
Let’s break down what labor burden really includes, how it varies by role, and how to use this analysis to tighten margins and grow profitably.
What Is Labor Burden?
Labor burden is the total cost of employing someone—beyond just their wage.
It includes:
Payroll taxes (FICA, FUTA, SUTA)
Workers’ compensation
Health, dental, and other benefits
PTO, holidays, sick days
Training time
Downtime (for techs waiting between jobs)
Company-provided tools, uniforms, or vehicle allowances
Admin or HR support (indirect labor burden)
If you’re paying a tech $28/hour, your actual hourly cost could easily be $38–$42 once all burden is factored in.
Labor Burden by Role: A Breakdown
Technicians (Field Labor)
Wage Range: $22–$30/hr
Typical Burden %: 35%–45%
Drivers of Cost:
High workers’ comp rates (due to physical risk)
Frequent use of overtime, especially on emergency jobs
Paid idle time (drive time, waiting for approvals, equipment setup)
Uniforms, PPE, tools, or vehicle costs
Why it matters:
Technicians are revenue-producing—but only when they’re billable. You must account for unbillable time in your labor burden and make sure your pricing covers it.
Project Managers (PMs)
Salary Range: $65k–$100k+
Typical Burden %: 25%–35%
Drivers of Cost:
Salaried positions often include higher benefits packages
Less risk = lower workers’ comp
Overhead position (non-billable)
Usually includes phone, vehicle, fuel reimbursement
Why it matters:
PMs don’t show up on job costing reports unless you allocate their time correctly. If your gross margin looks healthy but your net margin is shrinking, PM burden may be the leak.
Estimators
Salary or Commission-Based
Typical Burden %: 20%–30%
Drivers of Cost:
Often hybrid comp (base + commission)
Light equipment/tools cost
Overhead position unless time is job-allocated
Potential sales expenses (mileage, lunches, networking)
Why it matters:
Estimators contribute to revenue indirectly. If their close rate is low or job sizes are shrinking, their cost per dollar sold goes up—quickly. Tracking their burden helps evaluate ROI on the role.
How to Use Labor Burden Data in Your Business
1. Set Your Pricing With Confidence
If you don’t know your true labor burden, you can’t price jobs for margin. Use burdened labor rates when building estimates—not just base wages.
2. Evaluate Role Efficiency
Compare total cost vs. productivity:
How much revenue does each tech produce per month?
What’s the average gross margin on jobs managed per PM?
What’s the revenue per estimate written?
3. Forecast Hiring Accurately
Use burdened costs when projecting how new hires will impact cash flow and profit—not just their base salary.
4. Benchmark and Improve Over Time
Track burden % quarterly. If it’s creeping up, dig into what’s changed—benefits, overtime, inefficiencies? Early detection helps you course-correct before it impacts profitability.
Pro Tip: Don’t Treat All Techs the Same
A senior mitigation tech might be producing $35k/month in revenue, while a newer tech is producing $18k—but both are burdened similarly. Segment your analysis by tech level to make better hiring, training, and compensation decisions.
Ready to see what your team really costs—and how to protect your margins as you grow? At Kiwi Cash Flow, we help restoration companies build accurate, role-specific labor burden models and use them to improve pricing, hiring, and profitability.
Book a free strategy call today and let’s break down the numbers together.