How To Calculate Manager to IC Ratio in Wave Accounting | Arithmix

As a business owner or manager, it's important to understand the dynamics of your team and how they work together. One way to measure this is by calculating the Manager to IC Ratio, which stands for Manager to Individual Contributor Ratio. This ratio is used to determine the number of employees that a manager is responsible for overseeing. In this article, we'll explain what the Manager to IC Ratio is, when it's valuable to calculate, and how to calculate it using Wave Accounting.

What Is Manager to IC Ratio?

The Manager to IC Ratio is a simple calculation that helps you understand the structure of your team. It's calculated by dividing the number of managers by the number of individual contributors. For example, if you have 5 managers and 50 individual contributors, your Manager to IC Ratio would be 1:10. This means that each manager is responsible for overseeing 10 individual contributors.

Understanding your Manager to IC Ratio can help you identify potential issues with your team structure. If you have too many managers and not enough individual contributors, it could indicate that you're top-heavy and may need to restructure your team. On the other hand, if you have too few managers and too many individual contributors, it could indicate that your managers are overworked and may need additional support.

When Is It Valuable To Calculate Manager to IC Ratio?

Calculating your Manager to IC Ratio is valuable in a number of situations. For example, if you're considering expanding your team, it can help you determine how many managers you'll need to hire to maintain an effective team structure. It can also help you identify areas where you may need to redistribute responsibilities or hire additional support staff.

Additionally, understanding your Manager to IC Ratio can help you identify potential issues with employee engagement and retention. If your managers are responsible for overseeing too many individual contributors, they may not have enough time to provide the necessary support and feedback to each employee. This can lead to disengagement and high turnover rates.

How to Calculate Manager to IC Ratio Using Wave Accounting

Wave Accounting is a free accounting software that can help you calculate your Manager to IC Ratio. To get started, you'll need to have a list of all your employees and their job titles. Here's how to calculate your Manager to IC Ratio using Wave Accounting:

1. Log in to your Wave Accounting account
2. Click on the "Employees" tab
3. Click on "Reports" and select "Employee List"
4. Export the report to a CSV file
5. Open the CSV file in Excel or Google Sheets
6. Filter the data by job title to separate managers from individual contributors
7. Count the number of managers and individual contributors
8. Divide the number of managers by the number of individual contributors to get your Manager to IC Ratio

Once you have your Manager to IC Ratio, you can use it to identify potential issues with your team structure and make informed decisions about hiring and resource allocation.

How Do You Calculate Manager to IC Ratio in Wave Accounting

Wave Accounting itself isn’t naturally geared towards letting you calculate complex metrics like Manager to IC Ratio. As an alternative, teams typically use products like Arithmix to import data from Wave Accounting and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Wave Accounting, combine it with data from other systems, and create calculations like Manager to IC Ratio.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Manager to IC Ratio in Arithmix

Calculating metrics like Manager to IC Ratio is simple in Arithmix. Once you've created your free account, you’ll be able to import your Wave Accounting data, and use it to create natural language formulas for metrics like Manager to IC Ratio.

Arithmix is designed to give you the power to build any calculations you want on top of your Wave Accounting data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.