> ## Documentation Index
> Fetch the complete documentation index at: https://docs.spicom.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Workforce

> Define your team’s real monthly cost so Spicom can calculate accurate margins and projections.

# Workforce

Your Workforce represents the people who contribute to producing client work — employees, freelancers, contractors, or founders.\
Spicom computes the **real cost per person**, giving you an accurate view of contract profitability.

***

## Why Workforce Matters

Most businesses underestimate the true cost of a collaborator.

It’s not just **salary**.

It includes:

* Employer charges
* Taxes and social contributions
* Paid vacations
* Overhead allocation (software, equipment, management time)
* Optional bonuses or commissions
* Tools required to perform the job

<Callout type="warning">
  Ignoring these costs often leads to **overestimated margins** (sometimes by 30%–45%).
</Callout>

Spicom handles all of this for you using a clear cost model.

***

## Adding a Workforce Member

To add someone to your workforce:

1. Go to **Workforce**

2. Click **Add Member**

3. Fill in:
   * **Name** (e.g., “Sarah – Senior Developer”)
   * **Monthly Cost** (gross salary or freelance monthly cost)
   * **Contract Type** (Employee / Freelancer)
   * **Cost Ratio or Charges** (optional)

4. Save and the member is automatically included in all calculations.

***

## Example: Real Cost Calculation

### For an Employee

Let’s take a developer:

* Gross salary: **€4,000/mo**
* Equipment & tools: **€150/mo**
* Management overhead: **€200/mo**

**Real monthly cost**:

employee\_cost = salary + charges + overhead + tools
employee\_cost = 4000  + 200 + 150
employee\_cost = €4350/mo

Spicom performs this math automatically based on the inputs you provide.

***

### For a Freelancer

If a freelancer charges **€450/day** and works **10 days/month**, then:

freelancer\_cost = 450 \* 10 = €4,500/mo

No additional charges unless you choose to add overhead.

***

## How Workforce Impacts Margins

Spicom uses workforce data to compute:

#### Contract cost

Based on the share of each person’s time allocated to that contract.

#### Real margin

margin = (revenue – workforce costs – global cost share) / revenue

#### 12-month projections

Workforce appears as a core cost in your financial forecast.

#### What-If scenarios

If a contract stops, Spicom recalculates how workforce cost is redistributed.

***

## Best Practices

* Use **real monthly cost**, not gross salary
* Revisit workforce every time a contract changes
* Add yourself (founder) with a realistic cost for accurate margins
* Add freelancers even if temporary (they distort month-to-month profitability)

***

## Next Step

Continue your setup:

[Import Contracts](/setup/import-contracts)\
[Global Costs](/setup/global-costs)