EmpMonitor tracks every minute your employees normal balance work, down to the second. You get daily and hourly reports that show exactly how much time each team member spends on tasks. The software separates productive and idle hours, allowing you to assess whether someone is fully engaged or needs support. With this level of detail, generating reliable timesheets becomes effortless, and your full time equivalent data stays accurate and audit-ready.

• Document which hours count toward FTE calculations, including or excluding PTO and holidays.
• FTE also dictates whether a small business qualifies for tax credits for providing health benefits.
• Now, the exact number of hours that a 100% FTE represents will depend on your company’s policies and the various labor laws in your state, country, and more.
• You must collect the total hours worked over a period of time (for example, a month or a year) and divide it by the standard working hours for that period.
• Industry trends, economic conditions, and competitive dynamics can impact the overall revenue generation of a company, influencing revenue per FTE.

Count Number of Hours Worked by Part-Time Employees

• By understanding how time is spent visually, managers can make more informed decisions when calculating FTE across various roles.
• Consider using this calculation to determine the number of employees needed to meet organizational goals.
• So, even though you might have eight people working, your FTE is 6.25.
• The treatment should be applied consistently and aligned with the purpose of the analysis.
• For example, rather than hiring multiple part-time employees, a company may decide that one full-time employee would better serve their needs.
• Typically, the Number of Full-Time Hours in a Given Period is 40 hours per week or 2,080 hours per year (40 hours x 52 weeks).
• To calculate the total number of hours worked during the year, add 6,240 + 1,040 + 520.

Document your organization’s standard full-time workweek and which hours count toward FTE calculations. Inventory all worker types, including employees, contractors, temps, and interns. Audit your current HR software solutions to determine whether they calculate both metrics accurately.

FAQ about Revenue Per FTE

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. Consequently, the FTE for a part-time employee working 20 hours a week would be 0.5. It is then important to note that some FTE calculations do involve a fair amount of assumptions. For example, some governments may simplify the process by assuming each part-time worker to be 0.5 FTE, regardless of the hours they work. Some may even assume any employees who work more than 20 hours a week to be 1 FTE.

Can FTE be used for part-time employees?

Use this Excel template to simplify ongoing FTE calculations and keep workforce data organized. Based on the FTE value, some of your employees could be eligible for minimum or affordable healthcare insurance. Knowing this will help you stay compliant with state and federal laws. Under ACA, any employee that works at least 30 hours per week, or 130 on a monthly basis, is entitled to some form of healthcare.

For example, HR departments can use FTE calculations to standardize the working hours and salaries of employees working on a part-time basis. So, workers who work 20 hours in a standard 40-hour workweek are 0.5 FTE because they’re working half the time of full-time workers. Headcount refers to the total number of people employed by your organization, including both full-time and part-time employees. To calculate the total FTE in your company, first determine the FTE of your part-time workers. To do that, divide the total number of hours worked by your part-time employees by the total number of annual hours worked by 1 full-time employee.

• Don’t forget to include their paid and unpaid leaves in the total time for more accuracy.
• In contrast, non-exempt positions that typically work only 28 hours per week on a 0.75 FTE schedule do not qualify, even if the employer policy defines them as full-time.
• Simplify your workforce planning with our easy-to-use calculator to optimise staffing levels and make informed HR decisions.
• It can be derived by taking the salary of a full-time employee and prorating it for part-time employees based on their FTE percentage.
• From salary planning to benefits and overtime projections, your budget becomes more realistic and easier to manage.

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Whether an FTE of 0.75 is considered full-time depends on the company policy. An employee who works 75% of the hours of a full-time worker has a 0.75 FTE. If you, for instance, choose the first https://dearing-group.com/cpa-boston-ma-top-boston-bookkeeping-accountant/ method, enter all the actual hours worked (including PTO) and divide that number by 2,080 to get the final FTE.

When the goal is accurate workforce planning, using an FTE calculator ensures you’re working with clean data and fewer errors. Full-Time Equivalent (FTE) is a unit that standardizes the workload of employees, making it easier to compare workforce fte meaning sizes across different contexts and organizations. For more support in calculating your organization’s Full Time Equivalent, download our free FTE Template and streamline your staffing calculations for efficient resource allocation. Full Time Equivalent calculations are crucial for determining staffing needs and optimizing resource allocation.

Step 2: Add Up Total Hours Worked by All Employees

FTE counts vary widely by sector, driven by labor intensity, automation, and business models. Understanding your industry’s typical ranges helps you spot if you’re overstaffed or understaffed. Therefore, the FTE for this workforce is 0.125, indicating that it’s equivalent to 12.5% of a full-time employee. A cross-industry benchmark report revealing how finance leaders track, manage, and trust their labor cost data.