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How to Calculate FTEs?

How to Calculate FTEs

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How to Calculate FTEs

FTE stands for Full-Time Equivalent. This is a unit that indicates the workload of an employed person in a way that makes workloads or workforces comparable across various contexts.

A full-time employee is typically considered to be working 40 hours per week. Here’s how to calculate the FTE:

  • Identify the Total Number of Hours Worked: This includes the hours worked by both full-time and part-time employees during a certain period.
  • Identify the Full-Time Hours for the Period: Typically, full-time hours are 40 per week. But this can vary depending on the company or the country. For example, if you’re calculating FTEs for a year, the full-time hours would be 40 hours/week * 52 weeks/year = 2,080 hours/year.
  • Calculate the FTEs: Divide the total number of hours worked by the full-time hours.

Here’s the formula:

FTE = Total Hours Worked / Full-Time Hours

Let’s take an example:

Suppose in a week, you have:

  • Two full-time employees who each work 40 hours per week (so, 2 * 40 = 80 hours)
  • Four part-time employees who each work 20 hours per week (so, 4 * 20 = 80 hours)

So, the total hours worked in the week would be 80 (from full-time employees) + 80 (from part-time employees) = 160 hours

Assuming a full-time workweek is 40 hours, the FTE would be calculated as follows:

FTE = 160 / 40 = 4

So, you have 4 FTEs. This means that the combined hours of your full-time and part-time staff are equivalent to the hours worked by 4 full-time employees.

Example of How to Calculate FTEs

Let’s take an example of a small business that employs both full-time and part-time staff:

  • Full-Time Employees: The company has 10 full-time employees who each work 40 hours per week. So, their total hours are 10 employees * 40 hours/week = 400 hours/week.
  • Part-Time Employees: The company also has 4 part-time employees who each work 20 hours per week. So, their total hours are 4 employees * 20 hours/week = 80 hours/week.
  • Total Hours Worked: Therefore, the total hours worked in a week by all employees are 400 hours (from full-time employees) + 80 hours (from part-time employees) = 480 hours.
  • Full-Time Hours: Let’s assume a full-time workweek is 40 hours.
  • Calculate FTE: Now, we divide the total hours worked by the full-time hours:

FTE = Total Hours Worked / Full-Time Hours FTE = 480 / 40 = 12

So, the FTE for this company is 12. This means that the combined hours of the full-time and part-time staff are equivalent to the hours worked by 12 full-time employees.

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