How to Calculate FTE: Full-Time Equivalent Formulas & More

Let’s take a look at a few of the more common programs you might be expected to provide an FTE figure for. I accept the treatment of my data to receive related communication about the service. The full-time fte meaning equivalent is an indicator that answers many of the questions Human Resources departments need answers to. This, therefore allows them to make better decisions regarding personnel management.

For example, measuring FTE from month to month, or even week to week, helps to track overall workloads and expected employee output, even as part-time schedules chop and change. This could refer to either a single full-time employee or two or more part-time employees whose contributions add up to the equivalent of one full-time worker. Figuring out exactly how many https://www.bookstime.com/ people work for a company is more complicated than asking for a show of hands. And while they’re all valued as part of the company, there are certain situations in which they’re not considered in the same way when calculating your headcount. In general, full-time means an employee who works 40 hours per week, although this can vary depending on the organization.

How Do I Calculate Revenue Per Employee?

You may have a lot of employees, but they may not spend much time working for you. Federal and state governments use your FTE count to determine whether various laws apply to your company. Some laws use the 2,080-hour/40-hour week formula, but others employ different methods. Under the American Health Care Association, or AHCA, for example, employees count as full-time if they work a 30-hour week. You derive the number of FTEs by using 30 hours rather than 40. If you have two employees who each work a 20-hour week, you can treat them as one Full Time Equivalent, or FTE, employee working a 40-hour week.

When you calculate FTE, you can find the costs of time, personnel, and money to determine staffing decisions. It’s used by businesses to figure out how many full-time or part-time employees are in a company and for organizing projects.

What Is Full-Time Equivalent (FTE) and Does It Affect Your Business?

After translating the part-timers into FTEs, you can compare your staffing levels to your industry competitors. Using FTEs also makes it easier to calculate revenue, productivity and profits per employee. FTE allocation value is the hours available for a resource to work on a project based on the resource calendar divided by available hours based on the Standard Calendar.

How to set up a clock-in clock-out system at work Need a good clock-in clock-out system so people coming to work can check in and out? How to make precise work time estimates Check out these 7 tips that will help you set fast, precise, and functional time estimates for any project…. Bear in mind that this is just the expected number of hours Olivia may work with a 0.7 FTE — she will likely use some of these hours for PTO. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you.

Make a List of All Employees & Hours Worked

Calculating full-time equivalent for your business can be time-consuming if you currently process your payroll and employee benefits manually. FTE has a bunch of uses and different ways to calculate it depending on your situation. It’s a simple calculation to make and you just need to know your employee details and go from there.