Jason On Firms Podcast 403 This Guy’s Been On Production Pay for 12 Years!
Jan 20, 2025
Matthew Patrick, founder of Whirks, shares his wealth of knowledge on production pay and firm management. He dives into how production pay has evolved in accounting, emphasizing a culture of productivity and transparency. Matthew addresses the challenges with traditional billing practices and the necessity of clear communication about compensation models. He also discusses the benefits of outsourcing talent, enhancing client reporting with innovative tools, and the role of AI in streamlining accounts payable for increased profitability.
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Origin of Production Pay
- Matthew Patrick's frustration with unchanging compensation despite increased work at Deloitte inspired his firm's production pay model.
- He aimed to reward efficiency and empower employees to improve processes.
Prerequisites for Production Pay
- Ensure you have enough work to drive efficiency and the right, money-motivated people.
- Start with pricing accurately; production pay won't work if you aren't profitable.
Early Challenges
- Early challenges included determining reasonable work expectations and accurate pricing.
- Consider how non-productive time impacts production pay calculations.