What is Full-Time Equivalent FTE & How to Calculate It?

Here are the key points and an action plan for successful FTE management. In addition to full-time employees, do you also have part-time employees? For example, a company with 100 employees, including 20 part-time workers, might have a headcount of 100 but an FTE of less than 100. Cassie is a former deputy editor who collaborated with teams around the world while living in the beautiful hills of Kentucky.

How to Calculate FTE for Individual Projects

Whether you’re in human resources, financial management, project management, or any other industry, FTE is your key to achieving greater efficiency and effectiveness in managing your workforce. Full-Time Equivalent (FTE) is a powerful metric that simplifies workforce management in various aspects of business. It allows organizations to convert different work hours into a common standard, making it easier to allocate resources efficiently, control costs, and plan for the future.

How technology can help you calculate FTE

1. FTE is a vital metric that enables organizations to make informed decisions about staffing, budgeting, and resource allocation.
2. FTE takes into account the hours worked by part-time and contract employees, providing a more accurate representation of the organisation’s labour costs and workload distribution.
3. FTE or full-time equivalent is a tool to help you gauge the potential productivity of your business or company.
4. Keep this in mind when calculating the FTE to get a realistic picture of work capacity.

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. Therefore, an FTE for a standard full-time worker working 40 hours per week is 1.0 FTE. A full-time equivalent (FTE) — also known as a whole-time equivalent or WTE — represents the sum of all full-time hours employees work in a certain company.

In other words, FTE allows companies to standardize headcount and measure workload capacity by converting part-time staff to a full-time basis. Using a Kiosk — for more advanced time management, choose the time clock Kiosk in Clockify where employees can clock in with their PIN code (just make sure you enable it in the Settings section). Whether an FTE of 0.75 is considered full-time will depend on the company policy made by the employer.

Headcount is the total number of employees, while FTE is the equivalent number of full-time employees needed to perform the same amount of work. FTE takes into account the hours worked by part-time and contract employees, providing a more accurate representation of the organisation’s labour costs and workload distribution. A typical or full-time work week usually consists of 40 working hours without paid or sick leave. So, if your standard work week consists of 40 work hours, your employees probably work 8 hours per day.

Calculating FTE: A Tactical Approach

You can calculate FTE to determine how much a project will cost in terms of time and personnel needs. It is a measure used to calculate the number of hours an employee works relative to full-time employment. It allows organizations to measure the total labor hours of both full-time and part-time employees on a uniform basis. The full time equivalent or FTE is a figure that measures the total number of full time employees working in a company. It sums up the number of hours worked by all kinds of employees including full time and part time workers.

FTE Management Best Practices

This makes it possible to plan and manage your budget more accurately, and to identify cost savings by looking at the ratio between hours worked and costs. FTE provides a clear overview of how many employees you have in terms of full-time working hours. This helps plan staffing by ensuring fte full form in company that you have enough employees to meet demand without deploying too many staff. By knowing how much FTE you need, you can efficiently create schedules and schedule employees at the right times. For employees with flexible hours, the FTE calculation can be slightly more complex.