Accordingly, 5 full-time positions result in an FTE of 5.0.Ī part-time position (20 hours) corresponds to an FTE of 0.5. The FTE or FTE value, in this case, is 7.0.Ī full-time position corresponds to an FTE of 1.0. Five of them work full-time (40 hours per week), three occupy a part-time position each working 20 hours a week, and the other two each work 10 hours per week. In other words: they allow you to calculate the real performance of a work team, a specific department, or the entire organization.ġ0 people are employed in a company. As they indicate how much manpower a company has. Like revenue per employee, this indicator is of great importance for strategic HR management. The full-time equivalent converts the hours worked by part-time employees into hours worked by full-time employees. Consequently, the FTE for a part-time employee working 20 hours a week would be 0.5. An FTE of 1.0, for example, corresponds to the hours worked in a day for a full-time employee. The full time equivalent, often abbreviated as FTE is an indicator that reflects an employee’s productive capacity.
#BILLABLE HOUR CALCULATOR HOW TO#
How to Calculate the Full Time Equivalent.Why Calculate the Full Time Equivalent?.Want to learn more about what it is and how it can help you? Keep reading.
This, therefore allows them to make better decisions regarding personnel management. The full-time equivalent is an indicator that answers many of the questions Human Resources departments need answers to. Through the full time equivalent calculation, it is possible to identify whether your small business needs to hire, restucture or reduce its staff, for example. What is the productive capacity of your company? 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.
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