Stan

Stan

Benefits of FTEs: A Better Staffing Model

Augment your staff with an FTE employee and enjoy the benefits of FTEs.

In the web business, there are two common approaches for engaging clients in project development: Fixed Cost or Time and Materials. Yet I would recommend another, often overlooked method: the Full-Time Equivalent model (FTE). There are many benefits of FTEs.

What is an FTE model?
A Full-Time Equivalent (FTE) is a unit that indicates the full workload of a single team member across various contexts, often measuring a person’s involvement in a project. An FTE of 1.0 is equivalent to one full-time person, and an FTE of 0.5 equals half of a full workload.

It is common for FTEs to be available for commitments of half-time (80 hours/month) or full-time (160 hours/month). If a client needs additional FTEs, they can be provided with a mutual agreement and proper notice. Other team members such as a frontend developer, UI/UX designer, tester, network support, or solution architect/consultant could be available on an uncommitted basis and billed per hour.

Benefits of FTEs: Why
When a software company expands resources for a project, having an FTE minimizes risk. If you’re facing a project where the client does not have details planned out, having an extra pair of hands on board for a set time and price may be the best option. The person will be under contract, and under your direction, like any of your own employees. At the end of the project, with proper notice (usually around 30 days) to the web company that the developer belongs to, you can be less one pair of hands without the hassle and negative effects of laying off an employee.

Benefits of FTEs: When
You should consider investing in an FTE if you have:

  • a strong, trustworthy relationship with a partnering IT company.
  • a large, in-depth project in your hand which will keep 1-2 people busy for at least 6 months.
  • considered hiring employees to do the work.

Benefits of FTEs: Company and Client Responsibilities

The following describes the responsibilities of the web company that provides an FTE and your business on the receiving end.

 

Web Company’s Responsibilities

Your Responsibilities

Healthy Outlook

The company is responsible for minimizing distractions to the FTEs and providing a task-friendly environment.

Prioritization of Workload

You manage the employee like your own, providing priorities for project work or maintenance and support.

Skilled Resources

The company is responsible for replacing an FTE with an equally-talented, sufficiently-skilled person in the event the FTE is no longer available.

Daily Workload

You are responsible for assigning enough daily work for the FTE to fulfill the full-time (or half-time) commitment.

Available & Responsive

In addition to dedicated FTEs, the company’s leadership team is available to aid clients with any challenges.

Performance Assessments

You provide evaluations and written feedback to your FTE, so the employee can improve the quality of work.

Performance Challenges

If an FTE does not do quality work or try to improve, the company will provide a sufficient replacement.


If adding an FTE to your team seems like a good fit for your business, turn to your trustworthy, outsourcing partner. If they don’t do FTEs then Contact us to ask questions or start an FTE contract.

Subscribe to our blog: