Table of Contents
Introduction
In the context of a software engineering agency, the term "bench" refers to a pool of technical professionals who are currently not assigned to billable client projects. These professionals remain on the company's payroll but are temporarily without direct client work. The concept is similar to sports, where bench players are ready to enter the game when needed.
Key Aspects of Bench Management
1. Financial Implications
Having engineers on the bench represents both a cost and an opportunity for software agencies:
Engineers on the bench still receive salaries and benefits without generating billable hours, directly impacting the agency's profitability.
A strategic bench enables agencies to quickly respond to new opportunities and client emergencies.
2. Optimal Bench Size
Finding the right bench size is a balancing act:
Excessive bench capacity drains financial resources and reduces profit margins.
Insufficient bench capacity limits the agency's ability to take on new projects or respond to urgent client needs.
Most successful agencies aim to maintain a bench ratio of 5-15% of their total workforce, adjusting based on market conditions and growth projections.
3. Productive Use of Bench Time
Effective agencies utilize bench time for various value-adding activities:
Training in new technologies, frameworks, or methodologies.
Building tools, libraries, or products that benefit the agency.
Exploring emerging technologies or solutions for potential client applications.
Creating documentation, tutorials, or conducting workshops for other team members.
Assisting with technical assessments, proposals, or proof-of-concepts for prospective clients.
Bench Management Strategies
Proactive Planning
Successful agencies implement proactive bench management approaches:
Predicting project completions and new project starts to anticipate bench periods.
Synchronizing sales efforts with projected bench availability.
Developing versatility in engineers to increase their deployment options.
Bench Reduction Tactics
When bench size grows beyond optimal levels, agencies may employ various strategies:
Loaning engineers to other teams or departments that could benefit from additional support.
Intensifying business development activities to secure new projects.
Utilizing contractors for peak demand periods to minimize permanent bench size.
The Psychological Aspect
Being on the bench can affect engineers psychologically:
Engineers may feel less valued or worry about their job security.
Effective agencies maintain communication with benched staff, providing clear timelines and meaningful work during bench periods.
How an agency treats its bench influences its overall culture and employee retention.
Measuring Bench Effectiveness
Key performance indicators for bench management include:
Percentage of bench time spent on productive activities.
Average duration engineers spend on the bench.
Bench payroll costs as a percentage of total revenue.
New certifications or capabilities acquired during bench periods.
Conclusion
The bench concept is a fundamental aspect of software engineering agency operations. While it represents a direct cost, strategic bench management can become a competitive advantage, enabling agencies to maintain flexible capacity, develop talent, and respond rapidly to market opportunities. The most successful agencies view their bench not as an unavoidable expense but as a strategic resource that, when managed effectively, contributes to both short-term agility and long-term growth.