Seniority and Workload (FTE) – Two Different Aspects of a Single Position
Seniority describes the level of experience and independence required for the job. FTE (full-time equivalent) expresses the extent of the work load relative to a full-time position. Even the most experienced team member can work at 0.5 FTE. When comparing compensation, each of these two metrics has a different significance.
How to Assess Seniority
Describe which situations a person can handle independently, when they need guidance, and how complex the tasks they tackle are. The number of years with the company is only a partial indicator.
How to Interpret FTE
For a full-time position of 40 hours per week, 30 hours equals 0.75 FTE. Always use the full-time hours applicable to the position in question as your basis.
The same monthly amount may correspond to a different rate
Two accountants at the same seniority level have a monthly base salary of 48,000 CZK at 1.0 FTE and 36,000 CZK at 0.75 FTE. Converting the second amount to a full-time equivalent yields 36,000 ÷ 0.75 = 48,000 CZK. In this example, the scope of work explains the entire difference in the monthly base salary.
How do you account for a change in employment status during the year?
Divide the period according to the date of the change and assign the employment status valid at that time to each part. Using December’s data for the entire year may skew the result.
The standardization of compensation explains in more detail how amounts are adjusted for different work schedules. The example under the entry “Adjusted Compensation Differential” illustrates how the proportion of junior and senior employees affects the final result.
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How can you compare employees with different work arrangements?
Using sample compensation examples, we’ll walk through how to distinguish between the impact of employment status and different levels of seniority when reviewing SmartFP reports.
