How to calculate your workforce full-time equivalent?

Now determine the number of hours worked by full-time employees over a given period. Full-time employees are those who work a minimum of 30 and a maximum of 40 hours a week and more than 120 days a year. As you can see from the example above, you can easily calculate how many full-time equivalent employees you need to hire to successfully complete a project.

Your overall workforce is three people, but in terms of hours, it is the same as if you had two full-time employees. FTE is an important calculation for businesses that need to keep track of organizational costs, efficiency, overtime hours, work output, and the overall strain on certain departments. If you’re not sure where to start to track FTE, consider using QuickBooks Time , which helps organize employee hours and delivers helpful insights into your https://www.bookstime.com/articles/how-much-does-a-cpa-cost. With these tips, you can run a smoother business operation with a deeper level of understanding into your labor costs and needs now and in the future.

Easy FTE Calculator

A single full-time employee is the baseline of the measurement and has an FTE of 1.0, while a part-time employee working half as many hours has an FTE of 0.5. These values are combined with simple addition, so that three part-time employees working half as many hours as a full-time employee would have a total FTE of 1.5. FTE counts part-time employees as some fraction of a full-time employee, usually based on the number of hours they work (though depending on the business, there are other ways of measuring a given employee’s contribution). To determine this amount, ask yourself, what do you expect a full-time employee to work in terms of hours per week?

This is done by counting somebody who works half as much as a full-time employee as half an employee, and so on. It might sound cold, but it’s a vital metric when companies are applying for government loans, and when determining whether the company is large enough to have to follow certain laws. Using time tracking software, like Homebase, will allow you to run a historical report based on employee work history and status to gather the average hours worked using custom fields. In addition, Homebase provides small business employers with a range of scheduling options to ensure your staff hours are within the correct range. Salaried employees who work full time or are expected to work a full-time schedule (even if they don’t report their actual hours each week) are considered full-time employees in both cases.

Step 1

With this data at your fingertips, you can keep track of hours worked, along with how long it takes for employees to complete tasks. Rated #1 on G2 for resource management, more than 4,000 of the world’s top teams choose Float to plan projects, manage resources, and track their team’s time. If you want to calculate FTE salary, multiply the FTE figure by your full-time salary.

Seasonal and temp workers don’t count for AHCA if they work less than 120 days in the year. Federal civil rights laws, however, count seasonal employees if they work every work day for 20 weeks in the current or previous year. Keeping track of FTE from year to year can help to track workforce trends, or accurately forecast for adding new members of staff to the team, even if they aren’t working full-time hours.

How to Estimate a Base Salary to Hourly

The answer should be between hours a week per employee (when considering full time). Now add the total number of hours worked by full-time employees to that of part-time employees to get the total number of hours for all employees. Based on an FTE of 1.0, we calculate employees work 2,080 hours per year. Furthermore, this value is used only as a basis for calculating the annual FTE and reflects the hours of an employee who works 5 days a week, 8 hours a day.

• With these tips, you can run a smoother business operation with a deeper level of understanding into your labor costs and needs now and in the future.
• A business owner can calculate how many full-time employees they have and the number of part-time employees that count as full-time equivalent employees to make up their total FTE count.
• Let’s take a look at a few of the more common programs you might be expected to provide an FTE figure for.
• We operate asynchronously, so everyone can choose which hours work best for them.
• All you need to do is enter how many hours of work are required to complete the whole project (estimated time), and then how many hours a day your employees will work on that specific project.

So the FTE is not the number of employees in a company, but the equivalent of a full-time employee. Because the number of employees says nothing about a company’s actual work performance. First, let’s look at what full-time equivalent fte meaning or FTE actually means. The full time equivalent, often abbreviated as FTE is an indicator that reflects an employee’s productive capacity. An FTE of 1.0, for example, corresponds to the hours worked in a day for a full-time employee.

Full-time employee (FTE) calculation

Let’s say that a full-time weekly schedule in your company is 40 hours per week, and your employees are scheduled with 40 hours of work a week. This is a straightforward example since each employee who works 40 hours per week in your company has a 1.0 FTE. Since both are considered to be full-time schedules in their respective companies, both count as a 100% or 1.0 FTE. In practice, these numbers still usually fall somewhere between 32 and 40 hours per week, with 40 hours per week (8 hours per day, 5 days per week) being a common norm for a full-time schedule. However, the IRS mandates only 30 hours per week or 130 hours per month for an employee in the US to be considered full-time in terms of the type of employment.