Hiring Ramp Model

Plan a headcount ramp by date

The task is to compare two 2026 schedules for Employee Group A. Both start with eight FTE and finish with eleven. The Headcount Model covers the broader personnel model; this hiring ramp isolates when people join or leave and what that timing does to annual expense.

Enter the two dated schedules

Earlier-hire case: add two FTE on January 1 and two on July 1. Later-hire case: add two on July 1 and two on October 1. Both have one departure on November 1. Events do not recur. Closing FTE is 8 + 4 − 1 = 11 in both cases.

Annual salary is EUR 60,000 per FTE. Bonus is 10% of base salary; payroll burden is 20% of base salary plus bonus. Each hire costs EUR 3,000 once, so four hires cost EUR 12,000 in either case. Departure cost and severance are zero. Opening cash and equity are EUR 1,000,000 each; revenue and all other inputs are zero to isolate the funded payroll exercise.

Reconcile average FTE and annual expense

The schedule weights events by actual days remaining in the calendar year. January 1 receives 365/365, July 1 receives 184/365, October 1 receives 92/365 and November 1 receives 61/365. Earlier average FTE is 8 + 2 + 2 × 184/365 − 61/365 = 10.8411. Later average FTE is 8 + 2 × 184/365 + 2 × 92/365 − 61/365 = 9.3452.

Base salary equals time-weighted FTE × annual salary in this full-year case. Add 10% bonus, apply 20% burden to base plus bonus, then add 12 of hiring costs, in EUR thousands. Earlier personnel expense is 870.61; later expense is 752.14. The difference of 118.47 follows solely from different time in employment.

Interpret the timing effect before choosing a plan

Year-end headcount describes the endpoint, not the resources used throughout the year. A later ramp reduces this year’s payroll while leaving eleven FTE for the next year. It also means less time worked in the current year; this isolated exercise does not estimate revenue lost or gained from that difference.

One-time hiring cost does not shrink with a shorter employment period: both schedules still make four hires. Bonus and burden are applied to the recurring compensation base, not to the hiring-cost amount. Use the Employee Cost Calculator for an individual cost calculation and the Operating Expense Model for the wider expense plan.

Reproduce the schedule with the current product

1. Download the earlier-hire model file and later-hire model file. Open the financial model, then select Manage models → Import and choose each file explicitly. Each uses the supported native model format and the actual personnel engine. The CTA itself loads neither example.

2. Switch to Advanced. Open Personnel → Model and inspect Employee Group A. Keep Personnel source at Employee Groups, cost method FTE × Compensation, FTE method Amount / Manual FTE and salary method Amount. Expand Additional compensation & one-time costs to inspect the bonus, burden, hiring costs and calculated FTE disclosure.

3. Compare the two models’ average FTE, closing FTE, compensation components and total expense against the table. The files store opening FTE 8 and the three dated events listed above; they leave the annual FTE target unset. The workspace currently does not expose a personnel-event editor. Typing eleven into an annual FTE target would create a start-of-year adjustment, not this dated ramp.

Where this hiring model stops

This is a financial schedule, not a recruiting pipeline, workforce optimizer or utilization planner. Salaries and productivity assumptions are not market estimates. For an explicit link from average FTE to revenue, continue to Revenue per Employee Model. To combine the payroll with delivery costs and overhead, use the Financial Operating Model. Displayed figures are rounded, while the engine retains exact day weights.