🔺 Using FTE Salary to Streamline Workforce Management
#Freelance

🔹FTE salary is a method that some companies use to work out how much to pay employees and contractors who do not work full time for their businesses.

How to calculate FTE Salaries:

🔹 The first step when using FTE to calculate salaries is to define what you mean by full time. How many hours is a full-time worker employed by your company? This is usually between 37-40 hours. 

🔹 Once you’ve decided what full time is, you can then classify employees as full time, part time, or something else entirely, like a consultant or a contractor. 

🔹 By calculating the annual hours of a full-time worker, you can then work out how much they make per hour, and multiply it by the number of hours part-time employees work to adjust for their accurate compensation. If a full-time developer is making $80,000 a year working 40 hours a week, then it makes sense that a developer working 30 hours a week should make $60,000 a year, for example, as they work three-quarters of the amount of time. 

🔹 For independent contractors, this approach will be different. A freelancer usually sets their own rates, and these can be higher than in-house staff, as they need to consider their own taxes and benefits. As a result, even with the higher initial or per-hour price tag, hiring a freelancer can often save money, at the same time as offering niche skills and expertise. 

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