How to Calculate the Full Time Equivalent FTE in 4 Steps

Your 10 part-time employees work 25 hours a week, for a total of 250. Each of your 15 full-time employees works 2,080 hours per year, which comes to 31,200. Part-time employees inflate staff size and skew headcount calculations.

Because the number of employees says nothing about a company’s actual work performance. https://www.bookstime.com/ First, let’s look at what full-time equivalent or FTE actually means.

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Calculating FTEs can be useful for budgeting current and future workforce needs. It also allows employers to examine total hours worked across the business rather than looking only at how many full-time and part-time employees are on staff.

You need to hire more employees, especially developers to integrate this software into your product designs. You can use FTE to analyze your operations and compare your business to industry standards. It is also useful to compare revenues to facility and staff sizes. 💡You can use Clockify to create project estimates, have your team track the time they spend working on the said project, and then make comparisons and track progress. To read more about how to improve your skills in making project estimates, check out our blog post about How to make precise work estimates.

What is FTE student calculation?

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• What’s more, the number of workers and FTE is present in training and business.
• When an employee takes an unpaid break, such as going to a doctor’s visit, you may need to deduct time.
• Information provided by PSST, LLC concerning the Affordable Care Act is not legal advice and should not be treated as such.
• This indicates that the combined hours of your three part-time employees , when divided by your regular full-time workweek , equals two FTEs.
• Full-time employees usually work 40 hours each week for over 120 days a year, but it also includes anyone who works more than 30 hours weekly.
• Of course, employee profitability factors heavily into hiring decisions.
• You may have a lot of employees, but they may not spend much time working for you.

And while they’re all valued as part of the company, there are certain situations in which they’re not considered in the same way when calculating your headcount. To calculate a salary based on the FTE hours, take the salary of a full-time employee and multiply it by the FTE of the employee. Determine how many hours an employee works in a year by multiplying the number of hours they work in a day, by the number of days they work a week, by the number of weeks they work a year. Additionally, FTE calculations give you a better sense of your current staffing levels so that you can plan and budget accordingly. Your 55 part-time and full-time employees are equal to 48.68 FTE. Your 36 part-time and full-time employees are equal to 33.5 FTE. Additionally, some state and federal employment laws will only apply to your organization if you have a certain amount of FTEs.

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FTEs are important for checking HR metrics and determining tax statuses for your business, but luckily they’re pretty easy to calculate on your own. Keep reading to find out everything you need to know about calculating FTEs and how to use them. If full time equivalent an employee were to take no vacation time, and he or she works 40 hours a week, it would add up to 2080 hours. Granted, U.S.-based employees often take two weeks of vacation, and their European counterparts may take upwards of four to six weeks.

Full-time equivalent is a unit of measure that helps employers calculate the number of hours worked by all employees in their company. FTE is frequently used to assess an employee’s workload and its contribution to a project, or to track cost savings in a company. FTE in salary is necessary for accounting, as well as calculating the company’s costs while compensating its employees. Full-time equivalent is calculated by dividing an employee’s scheduled hours by the company’s work scheduled hours on a weekly full-time basis. To be required to provide COBRA continuation coverage, a company must employ at least 20 full-time equivalent employees on more than half of its working days in the past year.

Why Calculate the Full Time Equivalent?

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. Do you want to calculate how much hiring an employee abroad will actually cost you? Use our employment calculator to get an estimate of your overall costs for employees in different countries.