If you’re worried about salaries and benefits, you can use FTE calculations to learn what you’re currently paying those working full-time hours. In the chart below, because both Carole and Lynn are full-time employees, they would each be counted as one FTE. If you’re concerned about staying compliant, https://www.bookstime.com/ consider software such as Homebase that will track your employee hours, provide reporting, and can also prepare your time sheets for payroll. You can apply different methods for different classifications of employees, as long as you apply the method consistently within each classification.
To determine your total FTE, add the total part-time hours worked, plus the total full-time hours worked. From there, if your full-time fte meaning hours are 40 per week, divide the number by 2,080. If your total full-time hours are 30 per week, divide the number by 1,560.
Cater to Different Learning Styles
FTE has several different uses and several different calculation methods, depending on why you want to calculate it. It will help you plan your project work, set deadlines, and work out your budget. To calculate the number of hours your employee is expected to work based on their FTE, you’ll need to reverse the previously mentioned process of calculating FTE based on the number of hours worked.
So, whether you’re a business owner, HR professional, or just curious about how work can be measured, understanding how to calculate FTE is a crucial part of effective workforce management. FTE allows companies to assess workforce capacity and the real performance of their team, the individuals within that team, entire departments, or even the company as a whole. FTE or full-time equivalent is a tool to help you gauge the potential productivity of your business or company. Many laws and regulations related to benefits eligibility, overtime pay, and other workforce standards depend on whether an employee is classified as full-time or part-time based on FTE status. Employee productivity can be measured to determine how much each full-time equivalent generates for the business. Tracking FTEs over time also allows HR to identify growing or decreasing expenditure on salary and benefits.
Full-time equivalent
Training in areas, such as conflict management and inclusion, further strengthens this cultural shift. Find the average number of hours worked to see if there’s room for scaling or if you need to cut back to save on costs. Once you have your total FTE count, multiply it by $83,200 to find your total spent on full-time equivalent workers. Our team at Float employs a global remote workforce, with most working from home (or from a co-working space). We operate asynchronously, so everyone can choose which hours work best for them.
- It’s about assigning the best people to the task and putting them in a position to succeed (without wearing them thin).
- 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.
- This is a straightforward example since each employee who works 40 hours per week in your company has a 1.0 FTE.
- For instance, in terms of business, calculating FTEs may be of great use when determining how many hours part-time employees should work to equal the number of hours full-time employees work.
- For example, an employee scheduled to work 21 hours per week would be 0.6 FTE when the full-time workweek is 35 hours.
- For example, you may want to do this when you want to make an FTE offer to a new employee during a job interview.
- This format allows for quick knowledge acquisition and skill development on the go.
One part-time employee who works ten hours per week and one part-time employee who works 25 hours per week. FTE calculations are about hours worked rather than number of employees. Amir, Mark, Phyllis and Sue could each work 10 hours per week and the total would be 40 hours worked, or one FTE based on a 40-hour workweek. When calculating your FTEs for basic accounting or business purposes, the simplest way to do it is to divide total annual work hours for all employees by an average full-time annual work schedule. Full-time equivalents (FTEs) is a metric that measures the total number of full-time employees you have based on hours worked rather than the exact number of employees.
