Costs Of Hiring Full-Time Employees vs Fractional Roles: The 3 Obvious Differences No One Tells You

When it comes to a corporate setting in deep tech, there are quite a few different roles that people can adhere to on the basis of their needs and routines. More often than not, there are options for people to become full-time employees, or they can even go for a part-time placement if they feel like they won't have the time to dedicate a full-time placement. Our article aims to note down the main differences between full-time and fractional roles, as well as the costs that can easily cover them, which makes it easier for you to understand.

• Difference Between Full-Time Employees And Fractional Roles

• Full-Time Employment

• Specified Pay

• Benefits

• Fractional Roles

• Pay

• Benefits

• Cost Differences Between Full-Time And Fractional Roles

• Full-Time Costs

• Recruitment

• Agencies

• Training

• Part-Time Costs

• Recruitment And Agencies

• Training

• Conclusion

Difference Between Full-Time Employees And Fractional Roles

Now, before we get into the costs of having full-time employees in deep tech, we also need to see what the difference can be, especially in early-stage startups.

Full-Time Employment

One of the first things you will notice is the role itself. Someone who works in a full-time position will have to dedicate a full 9-5 hours of their life to the work environment that they have been hired for.

Specified Pay

Typically, full-time workers have a fixed amount of pay that is credited to their accounts either on the first of every month or, at the latest, on the 5th of every month.

Benefits

Alongside that, people working full-time will also gain access to a plethora of benefits that the company itself provides. Most of these include health insurance, which is typically not covered in fractional roles in entrepreneurship. Other benefits, such as getting PTO (paid time off) and extra bonuses if the company does well, are things that fractional role people do not get to take advantage of.

Typically, if you're working full-time, the people responsible for people management will be able to get you access to Social Security and medical insurance that's paid off by the company, which can help you during difficult times when you need to go to the hospital.

Fractional Roles

Next, now that we've covered everything that you can get while working full-time let's see how fractional roles differ from their counterparts.

Pay

Fractional roles will usually consist of pay that is given out based on the total hours that the employee has put in, rather than having a base salary that covers the entire 9-5 section. If they are not paid by the hour, then chances are that in the contract that they sign, there will be a base salary that they will be given based on the project that they are currently working on in deep tech.

Benefits

Apart from that, they also experience being denied any sort of benefits that full-time employees would be given in situations like this. So, things such as Medicare, health benefits, paid time off, bonuses, etc., are a luxury and are not really put in the contract for fractional roles simply because they are not lending their hours full-time.

Cost Differences Between Full-Time And Fractional Roles

Moving on, let's talk about costs. There is a huge difference in costs between full-time and fractional roles, and we are going to break it down fully.

Full-Time Costs

The cost of having a full-time employee tends to skyrocket due to the longer presence they provide.

1. Recruitment

   One of the biggest expenses the company incurs is recruitment. Usually, it costs a lot of money to post a job listing or even hire a company to post an ad on pages where people can apply for the jobs, which is why they tend to prefer full-time employees to justify the price of the job listing.

2. Agencies

   Apart from that, there is another major factor, which is usually that if you are being hired through an agency, then chances are that the company working on the backend will want to work on cost-effectiveness. However, they still need to pay the agency. This is why they would also rather hire people who are willing to work full-time rather than part-time.

3. Training

Then, the main costs that need to be covered also include the training costs that are usually spent to train the newly hired person. HR also typically takes a percentage cut for the number of times that they are contacted daily, which can interfere not only with their daily routine but also with the total work that they are putting in.

Part-Time Costs

Now, when it comes to working part-time, you will have already noticed a significant pay and expenditure drop since the employee only tends to work a few hours throughout their day, and even that, most of it is based on the project that they are currently working on.

1. Recruitment And Agencies

   For that reason alone, there is no need to pay a recruitment agency as they tend not to be needed when it comes to the hiring process. The onboarding and logistics once the person has been hired aren't too difficult to understand on a daily basis, so the expenditure on that end also ends up being massively reduced.

2. Training

If employees opt out of working in an office environment and choose to go remote, then chances are that the total costs of office hours will be reduced. The main reason that employees would choose to go remote is to avoid the cost of transport and the extra expenditure that they could save on.

Conclusion

So, it can become an actual hassle to know the main difference between full-time employees and part-time roles, especially when you're working in deep tech. However, a little bit of research and time dedicated to it can lead to quite a plethora of knowledge that you can hone, especially if you want tooptimize your startup's operations.