The Full Time Equivalent (FTE) represents a unit of measurement standardized to equal the number of hours worked by the typical full-time employee. Just indicate how many employees work at your company, how many hours they work a week, and for how many weeks. Our model will then instantly calculate the Full Time Equivalent for you. To find the equivalent of a full-time day, divide the total number of hours by 8. In other words, do you know what the full time equivalent is and how it can help you better understand the needs of your organization? If you don’t know what it means, you should, as this metric can help you make important decisions.
Tracking FTEs over time also allows HR to identify growing or decreasing expenditure on salary and benefits. Finance teams will also be interested – ånd revenue per FTE can also be calculated from this. FTEs are the essential data needed to accurately forecast and manage labor costs across the organization.
Productivity
In step 4, we learned that the total number of work hours for all employees in a single week equals 153. The list should contain the names of your employees as well as the full number of work hours for a single week. Try to include employee leave (both paid and unpaid) in the overall number of work hours to make your results more accurate.
- You can view the unused balance as a whole number or percentage for on-the-fly planning.
- To determine this amount, ask yourself, what do you expect a full-time employee to work in terms of hours per week?
- Now, if you would like to calculate FTEs company-wise, make sure you adhere to the following steps below.
- The same logic is applied if a company considers 30 hours per week as the standard for a full-time position.
- To do that, you need to divide the total number of hours worked by your part-time employees by the total number of annual hours worked by 1 full-time employee.
If 0.75 FTE is considered full-time in a company, such employees may qualify to apply for the Public Service Loan Forgiveness (PSLF) program — eligible employees don’t have to pay out their federal student loans. First and foremost, make a list of all your employees within an organization. Whether you want to calculate an FTE for an individual employee (part-time or full-time) or determine the FTE within your entire organization, take a fte meaning look at the following calculations for further information. Managing employees, time tracking, overtime, and time-off data in disparate systems is complicated. Join us on this webinar case-study to see how Vimeo was able to leverage the BambooHR and Boomr integration to simplify their workforce management and streamline their processes. To convert an employee’s full-time equivalency into standard hours, multiply their FTE rate by 40.
Step 5: Calculate the Ideal FTE
By adding the full-time and part-time hours worked, we can calculate the total number of hours worked by all employees for the year as 109,000. The FTE calculation counts part-time employees as a fraction of a full-time employee, most often on the basis of the number of hours worked. FTE, an abbreviation for “full time equivalent”, counts the approximate number of full-time employees employed by a specific company, but with the inclusion of part-time employees.
If that’s not the case in your country or state, just adjust the numbers to reflect the labor laws you adhere to and your business practices. For example, if your full-time employee is obligated to work only 30 hours a week, you should use that number in your calculations instead of 40, as in our case. The Paycheck Protection Program (PPP) is a Small Business Administration (SBA) program to help employers retain employees during the public health and economic crisis. The number of full-time equivalent employees is used to determine the amount of loan forgiveness for borrowers. 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.