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Board OntologyHR

FTE Metrics

Derived triple — effective FTE, cost-per-FTE, and annualized payroll — computed from `hr.payroll_run_rate` + `hr.total_contractors` and a contractor-to-FTE conversion factor. Lets the board see capacity in normalized terms even when the staffing mix shifts. Common pitfall: choosing a contractor-to-FTE factor without explicit board agreement — some companies use 1.0 (1 contractor = 1 FTE for capacity), others use 0.8 (account for ramp / partial-engagement), others use cost-equivalent ratios. Lock the convention. — HR KPI, I'mBoard-authored (editorial tier).

I'mBoard-authored (editorial tier)

No public third-party standard anchors this KPI yet, so I'mBoard authors and maintains the definition — transparently labeled as editorial tier. See the ontology methodology for the published vs editorial tier system and the back-attribution workstream.

Rogue ID: hr.fte_metrics Type: Text Domain: HR

Definition

Derived triple — effective FTE, cost-per-FTE, and annualized payroll — computed from hr.payroll_run_rate + hr.total_contractors and a contractor-to-FTE conversion factor. Lets the board see capacity in normalized terms even when the staffing mix shifts. Common pitfall: choosing a contractor-to-FTE factor without explicit board agreement — some companies use 1.0 (1 contractor = 1 FTE for capacity), others use 0.8 (account for ramp / partial-engagement), others use cost-equivalent ratios. Lock the convention.

Formula

effectiveFTE = `hr.total_headcount` + (`hr.total_contractors` × contractorFactor). costPerFTE = `hr.payroll_run_rate` / effectiveFTE. annualizedPayroll = effectiveFTE × costPerFTE. Default contractor factor 0.8 unless the board adopts a different convention.

Why it matters

Normalizes capacity and cost across companies with very different contractor strategies, making hr.arr_per_fte and hr.payroll_as_pct_of_burn more comparable over time. Surfaces hidden cost inflation when contractor headcount grows faster than employee headcount.

How to interpret

Watch the drift between hr.total_headcount and effectiveFTE — divergence indicates contractor expansion that may warrant a build-vs-rent conversation. CostPerFTE materially above stage-typical comp benchmarks suggests either a senior-heavy mix or contractor-rate premium creep (industry folk-wisdom, not citation-grade — varies by geography and role mix).

  • hr.total_headcount
  • hr.total_contractors
  • hr.payroll_run_rate
  • hr.arr_per_fte
  • hr.payroll_as_pct_of_burn

Source

I'mBoard editorial — authored and maintained by I'mBoard, first published 2026-04-01. No third-party standard is cited for this KPI; when one emerges, the definition is back-attributed and promoted to the published tier (a minor version bump). Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.

Stage relevance

Company stagePriority
Series ARecommended
Series BRecommended
Series C+Recommended
PublicRecommended

Suggested for stages: Series A, Series B, Series C+, Public.

Default owning functions

  • HR
  • Finance

Machine-readable

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