Permanent to Freelance Staff Ratio

What is Permanent to Freelance Staff Ratio?

This metric calculates the proportion of permanent to freelance staff in your company.

How to calculate Permanent to Freelance Staff Ratio?

(#) of permanent staff : (#) of freelance staff = Permanent to Freelance Ratio

You can further simplify this ratio by dividing the number on each side by their highest common factor. For example, if your Permanent to Freelance Staff Ratio is 14:56 you can simplify this to 1:4 meaning for every one freelancer, there are four permanent staff members in your company.

You may also want to show the ratio as a percentage of your whole workforce:

( (#) of freelance staff / total (#) of staff ) * 100 = (%) of Freelance Staff

Pros:

Tracking this ratio can help you identify potential threats to the stability of your business. For example, if your engineering team is mainly made up of freelance staff, it could jeopardize your long-term business objectives as you look to scale.

Cons:

For companies with a large number of short term and long term freelancers, it may be helpful to distinguish between the two to avoid a skewed view of your workforce. For example, recruiting a number of marketing freelancers to help with a product launch who leave once you’ve gone to market or seasonal workers.