How to pay project manager Thread poster: Diego Tronca
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Diego Tronca 
France
Local time: 08:19
Member (2006)
English to Italian
+ ...
Hi group,
My work has been growing for the last year and a half to the point that I can't manage all incoming projects anymore on my own. This is my situation: I'm not an agency and I only deal with Eng and Fre > Ita; I collaborate with over 250 agencies and 4 major publishing companies (science, medicine etc.), I have 32 freelancers that work basically only for me and an average of 30 projects a day.
I'm thinking of getting a project manager after the summer, and I wanted to ... See more Hi group,
My work has been growing for the last year and a half to the point that I can't manage all incoming projects anymore on my own. This is my situation: I'm not an agency and I only deal with Eng and Fre > Ita; I collaborate with over 250 agencies and 4 major publishing companies (science, medicine etc.), I have 32 freelancers that work basically only for me and an average of 30 projects a day.
I'm thinking of getting a project manager after the summer, and I wanted to ask you for advice.
Since my clients/agencies are everywhere in the world, I end up checking my emails from 9am until 11pm every single day (except on weekends).
My questions are:
-Should I hire 2 PMs, who could share the long working hours?
-How much should I pay a PM paid considering that I am a freelancer and it would not be a salary?
Thanks.
Diego ▲ Collapse
| | | | | Pay what you would want to be paid | Jul 16, 2021 |
Hi Diego
I'm not sure if I understood your post/query 100%, but if your intention is to, essentially, "employ" someone full-time (or buy their time for the whole month or months at a time, etc.), then it would make sense to pay them what they would be able to earn if they had to continue freelancing like yourself + the percentage they would need to contribute towards their government for social security contributions, etc.
As an example, if I was working as a freelancer... See more Hi Diego
I'm not sure if I understood your post/query 100%, but if your intention is to, essentially, "employ" someone full-time (or buy their time for the whole month or months at a time, etc.), then it would make sense to pay them what they would be able to earn if they had to continue freelancing like yourself + the percentage they would need to contribute towards their government for social security contributions, etc.
As an example, if I was working as a freelancer (an auto-entrepreneur in France) and I wanted to take home a net income of €2500 per month, then I would need to add something like 22% to the net income (which the government would deduct for various things) and land up with a brute income of something like €3000. That would mean that you'd pay the PM €3000 and the government would deduct their 22% and the PM would take home €2500.
That would be the lower end of expenses, as it might be that you come across a good PM who's set up a private company and pays themselves a salary from the company. In such a case the contributions to the government are higher, seeing as the company would be paying both the employee's and the employer's social security, etc. contributions.
In the latter case, you would end up paying the PM (essentially their company) a monthly amount of about €4300 if the PM wanted to take home a net income of €2500 (after the employee and company contributions are deducted). Here's a little calculator you can use to give you an indication of how I came to the latter amount:
https://www.cnfe-urssaf.eu/index.php/fr/entreprise/j-estime-mes-cotisations
Otherwise, someone who's going to be (potentially) sacrificing all their time (and maybe their existing client base) to work full-time for you would need some form of job security, so it might be good to draw up a 3/6/12 month renewable contract to give them a sense of security (and to help them consider your proposal more seriously).
Hope this helps. It's just a few things that crossed my mind. ▲ Collapse
| | | | Edward Potter
Spain
Local time: 08:19
Member (2003)
Spanish to English
+ ...
Diego Tronca wrote:
My questions are:
-Should I hire 2 PMs, who could share the long working hours?
-How much should I pay a PM paid considering that I am a freelancer and it would not be a salary?
Interesting problem.
I like the idea of hiring 2 PMs: one for the morning/afternoon shift and the other for the afternoon/evening shift. You would fill in for them as needed.
You probably will have to train them no matter their past experience. You might find the most eager employees at a university translation program. Find the head of the translation department, explain your situation, and you would probably get a very positive response.
Payment would probably be in the form of a stipend, which would keep your costs low. On the other hand, you still might want to pay more outside of the stipend. When you find a good one, you will want to keep him later on.
If you don't end up hiring the students after they finish then you will have ongoing training with new students coming in on a regular basis. You can draw up your procedures as you go along so you don't have to keep repeating yourself every semester.
You should probably rent a physical office so you can keep close supervision on your employees. I don't like the idea of remote supervision so much.
| | | | IrinaN
United States
Local time: 01:19
English to Russian
+ ...
| What are your potential PMs supposed to do? | Jul 17, 2021 |
The answer is not as obvious as it sounds.
You need to start with putting together their job description, on paper, to make sure that both you and them clearly understand the extent of their authority, if any, and the exact list and scope of their roles and responsibilities. Only then you'll be able to think/talk about their actual worth.
Recruiting and assigning translators and editors, handling file circulation through the process from A to Z, monitoring due dates, ... See more The answer is not as obvious as it sounds.
You need to start with putting together their job description, on paper, to make sure that both you and them clearly understand the extent of their authority, if any, and the exact list and scope of their roles and responsibilities. Only then you'll be able to think/talk about their actual worth.
Recruiting and assigning translators and editors, handling file circulation through the process from A to Z, monitoring due dates, having the right to contact end clients and answer vendor's questions, bearing legal responsibilities for causing legal problems with the clients when representing you and acting on your behalf?
Or just "checking the emails" and other occasional "errand boy" duties still centered on you and you only, with everything being readdressed back to you? In that case, you just might end up with extra headache instead of help. A teen in the family working for ice cream or bike money would be an ideal candidate:-).
IMHO, business approach seems to be in order.
Good luck!
Irina ▲ Collapse
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Adieu
Ukrainian to English
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The words "stipend" and "supervision" do not inspire much confidence.
| | | | Edward Potter
Spain
Local time: 08:19
Member (2003)
Spanish to English
+ ...
Adieu wrote:
The words "stipend" and "supervision" do not inspire much confidence.
LOL.
Nobody said business was easy. The original poster sounds like he wants to make the important business decision of converting himself into a proper agency, while keeping his costs low. This will be challenging to say the least.
Can you come up with some other suggestions so we can help the guy out?
| | | | Adieu
Ukrainian to English
+ ...
Walmart model:
If you want your business to run itself and conquer the world, expect to have margins of ~4%.
Not 40%. Not 60%. Four percent.
And even that is with some predatory pay practices.
Edward Potter wrote: Adieu wrote:
The words "stipend" and "supervision" do not inspire much confidence. LOL. Nobody said business was easy. The original poster sounds like he wants to make the important business decision of converting himself into a proper agency, while keeping his costs low. This will be challenging to say the least. Can you come up with some other suggestions so we can help the guy out?
[Edited at 2021-07-17 23:47 GMT]
| | | | Edward Potter
Spain
Local time: 08:19
Member (2003)
Spanish to English
+ ...
Adieu wrote:
Walmart model:
If you want your business to run itself and conquer the world, expect to have margins of ~4%.
Not 40%. Not 60%. Four percent.
And even that is with some predatory pay practices.
Can you give some specific numbers? For example: yearly billing, expenses for employee/contractor payment, office rental, equipment, software subscriptions, etc.
If your numbers do not add up to a profit, then the answer to the poster's question would be not to attempt to convert into an agency.
I'm trying to give practical solutions to the poster's question here. As mentioned, I find the problem to be an interesting one.
[Edited at 2021-07-18 14:10 GMT]
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Adieu
Ukrainian to English
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| Don't expect to put your business on autopilot | Jul 18, 2021 |
And have large margins still. That's all I am saying.
If you want to run an efficient, sustainable business, then the sum cost of delegating N% of your workload will be (0.9something * N)% of your total income.
You can temporarily exploit the less fortunate (students, immigrants, outsource to miserable places, etc.), but it is not sustainable. Either your quality drops, losing you relationships or putting downward pressure on your prices, or productivity drops, and then... See more And have large margins still. That's all I am saying.
If you want to run an efficient, sustainable business, then the sum cost of delegating N% of your workload will be (0.9something * N)% of your total income.
You can temporarily exploit the less fortunate (students, immigrants, outsource to miserable places, etc.), but it is not sustainable. Either your quality drops, losing you relationships or putting downward pressure on your prices, or productivity drops, and then you find yourself paying very little.... for very little.
Or your employees grow up and start demanding high pay and/or abscond with your clients.
Obviously, you can also build high churn into your business model, but that involves high HR costs and permanently low quality and performance.
[Edited at 2021-07-18 16:53 GMT] ▲ Collapse
| | | | Diego Tronca
France
Local time: 08:19
Member (2006)
English to Italian
+ ...
TOPIC STARTER
Thanks everybody for your replies. All very interesting, I'll have something to think about.
Diego
| | | | Mirelluk
United Kingdom
Local time: 07:19
Member (2005)
English to Italian
+ ...
| Not an agency but almost | Jul 19, 2021 |
Hi Diego,
Given the high volume of work you are single-handedly managing, it is unclear to me why you do not consider your set-up as a 'de facto agency', bearing in mind that the number of language combinations and subjects you work with is irrelevant for the definition of 'agency'. I suppose you have not incorporated as a business/company entity. But still, I guess, you invoice your clients and pay directly your 'suppliers' whilst retaining a percentage as gross margin (I hope). Y... See more Hi Diego,
Given the high volume of work you are single-handedly managing, it is unclear to me why you do not consider your set-up as a 'de facto agency', bearing in mind that the number of language combinations and subjects you work with is irrelevant for the definition of 'agency'. I suppose you have not incorporated as a business/company entity. But still, I guess, you invoice your clients and pay directly your 'suppliers' whilst retaining a percentage as gross margin (I hope). You need advice from a professional fiscal advisor who can propose some incorporation options available in France (are you based there?) and suitable for our industry. Relying on project managers is rather tricky as it is up to you to establish the scope of their work, workflow procedures, quality standards, confidentiality issues, express appreciation or disagreement, and many more aspects. You become their boss, not really a colleague any longer, with a clear and shared vision of what you want to achieve and require from your PMs. In some respect, similarly to what you agree with your 'suppliers': turnaround times, quality checks, terminology databases, CAT tools, compliance with the end client requirements. But in addition to that you have greater fiscal and legal obligations.
Last but certainly not least, your prices to the clients must make it worthwhile for you to handle professionally your organisation and face the financial burden of paying before you have been paid. Increasing your prices to the end client will be one of the most challenging acts. I cannot see how you can become profitable if you maintain free-lance rates. I might be wrong and you already charge higher that basic rates. Operating as an agency, or better, as a proper 'translation company', possibly joining national and international associations, keeping track and comply with a myriad rules and regulations makes you a manager/director well beyond an enthusiast and successful linguist. The issue of hiring one or more project managers, becomes secondary to the issue of incorporating your business. My two cents: before you venture further, as a test, you can already hire 1 PM for 1 single large/complex project, establish your margins and their remuneration, set your rules and see if it works. Make a financial plan on paper, not just in your head.
I suppose you have gained some partial but useful experience so far and can take the further step of setting up a company. Bon courage and start making changes and delegate, as soon as possible, before you go mad pursuing all deadlines, requirements, replacements of unavailable or unsuitable linguists, computer crashes, tech issues, lack of sleep...and lots more.
All the best from torrid London! ▲ Collapse
| | | | Diego Tronca
France
Local time: 08:19
Member (2006)
English to Italian
+ ...
TOPIC STARTER | Reply to Mirelluk and group | Jul 19, 2021 |
Hi all,
I might actually be a de facto agency, although you're right Mirelluk, the language combos are really too few.
I don't know really, I have been going nuts since February 2020, thanks to Covid (I think). And I don't mean that I got sick
I used to have 10 freelancers who worked 99% for me and 200 agencies who gave me the odd projects, maybe 4-5 a day. Plus a couple of large science books a year from ... See more Hi all,
I might actually be a de facto agency, although you're right Mirelluk, the language combos are really too few.
I don't know really, I have been going nuts since February 2020, thanks to Covid (I think). And I don't mean that I got sick
I used to have 10 freelancers who worked 99% for me and 200 agencies who gave me the odd projects, maybe 4-5 a day. Plus a couple of large science books a year from major publishing companies. Since February 2020, I've received 20-30 projects a day, sometimes more, plus a large book a month (!). I have to read at least 60-70 emails every single hour from 9am until 11pm, and manage 32 full-time freelancers who basically work only for me.
I want to find the way to easy up my work, without becoming an agency (no interest in that!). Maybe I should get a PM for half a day and do the rest myself.
I already have my usual PM who covers for me with my team when I'm on vacation. I'm leaving for a 5-week vacation (well deserved!), but work will go on as usual thanks to her. She couldn't help me all year long, though.
In any case, I'll think about all that you guys said.
Thanks a lot.
D. ▲ Collapse
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Edward Potter
Spain
Local time: 08:19
Member (2003)
Spanish to English
+ ...
Mirelluk wrote:
My two cents: before you venture further, as a test, you can already hire 1 PM for 1 single large/complex project, establish your margins and their remuneration, set your rules and see if it works...start making changes and delegate, as soon as possible, before you go mad pursuing all deadlines, requirements, replacements of unavailable or unsuitable linguists, computer crashes, tech issues, lack of sleep...and lots more.
Excellent advice. He really needs to hire at least a couple of managers ASAP. However, he might want to start out provisionally to see if it works out.
| | | | Edward Potter
Spain
Local time: 08:19
Member (2003)
Spanish to English
+ ...
Diego Tronca wrote:
I might actually be a de facto agency..
I used to have 10 freelancers who worked 99% for me and 200 agencies who gave me the odd projects, maybe 4-5 a day. Plus a couple of large science books a year from major publishing companies. Since February 2020, I've received 20-30 projects a day, sometimes more, plus a large book a month (!). I have to read at least 60-70 emails every single hour from 9am until 11pm, and manage 32 full-time freelancers who basically work only for me.
I want to find the way to easy up my work, without becoming an agency (no interest in that!). Maybe I should get a PM for half a day and do the rest myself.
I already have my usual PM who covers for me with my team when I'm on vacation. I'm leaving for a 5-week vacation (well deserved!), but work will go on as usual thanks to her. She couldn't help me all year long, though.
Thanks for filling us in on some important details.
Hiring someone is long overdue. You have already tried it on a provisional basis and it worked out for you. Why don't you either convince your PM to go year-round, or find a couple more like her? It may be an ongoing search as they come and go.
You are already basically an agency. You just need the right formula to take the pressure off yourself, or scale up if you want. Perhaps a couple of local people who work from home would be the best candidates for your first hires. You can meet up on Fridays with them in a relaxing location to keep personal contact with them, and your sanity.
[Edited at 2021-07-19 22:40 GMT]
[Edited at 2021-07-19 22:43 GMT]
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