Free Online FTE Calculator + Free Sheets Template

Cross-training reduces idle time and lets you operate with fewer FTE during slow periods. This is especially useful for small teams where one FTE needs to wear many hats. Compare productivity and output metrics across teams and departments using a consistent FTE baseline. Standardise labour costs across different employment types to create more accurate budget forecasts and cost analyses. This calculator simplifies the process of determining the FTE of your workforce, making it an invaluable tool for business managers and HR professionals. If you want help with this process, HealthCare.gov offers a free FTE calculator.

• Revenue Per FTE is a financial metric that measures the average revenue generated by each Full-Time Employee (FTE) in a given period.
• You need a metric called FTE, or full-time equivalent, to work out both—but many companies don’t know what this is or how to calculate it.
• Organizations typically need to calculate FTE to determine workforce size and comply with certain regulations.
• Set up once, and your FTE reports refresh daily, weekly, or monthly.

How EmpMonitor Can Enhance FTE Management?

An FTE of 1.0 indicates a full-time employee working 40 hours per week, 0.75 means a part-time employee working 30 hours per week and 0.5 indicates an employee working 20 hours per week. These values help organizations quantify and manage workforce resources more effectively. Many employee benefits, such as health insurance, paid leave, and retirement contributions, are tied to FTE status. Full-time employees (1.0 FTE) typically qualify for the full range of benefits, while part-time employees may be eligible for fte meaning prorated or partial benefits based on their FTE value. For example, an employee working at 0.75 FTE may receive a partial benefits package. One of the primary uses of FTE in budgeting is calculating employee costs.

Total all full-time employee hours:

To calculate the FTE for one employee, divide the number of hours the employee works per week by the standard full-time hours in your organization, typically 40 typically 40. For example, if an employee works 30 hours per week and your full-time benchmark is 40 hours, the FTE would be 0.75. Full-time equivalent, or FTE, is a metric that quantifies employee workload by converting various work hours into standardized full-time units. FTE provides a baseline for measuring productivity, making it possible to evaluate performance across full-time and part-time roles equally. By calculating output per FTE, organizations can gain insights into how effectively employees are contributing to organizational goals. For instance, a sales team might track revenue generated per FTE, allowing managers to assess productivity objectively.

Divide the total number of work hours by your standard full-time hours.

After calculating the total hours worked, divide that number by the number of hours in a standard full-time workweek. It doesn’t matter how many people are doing the work; what matters is how much total work gets done. So, if you have four part-time employees working 10 hours each, that also adds up to 1.0 FTE. Calculate the Full-Time Equivalent employees for your organization accurately to better manage your workforce planning, budgeting, and compliance. In one company, a full-time schedule typically consists of 40 hours per week. Since both are considered full-time schedules in their respective companies, each schedule counts as 100% or 1.0 FTE.

It’s a metric that quantifies an employee’s workload by comparing it to a full-time schedule. Artificial intelligence will change FTE calculations fundamentally by augmenting human capacity. Organizations are beginning to track “augmented FTE” that accounts for technology-enhanced productivity. Train finance, operations, and executive leaders on when to use each metric. Create decision trees showing which metric applies to common scenarios like budget planning, hiring approvals, and capacity analysis. Schedule workshops with department heads to review their specific team metrics.

Bonus FTE calculators

Use FTE for capacity decisions and headcount for people decisions. When determining whether to hire additional support, FTE tells you if you need more hours. Harvard Business Review research shows that effective workforce planning requires cross-functional collaboration. Regularly tracking and analyzing revenue per FTE data enables businesses to identify trends, make informed decisions, and adjust strategies as needed to continuously improve performance. The use of FTE plays an important role in staff planning and helps companies to optimally organize their staffing. By understanding and applying FTE properly, you can deploy your staff more effectively and budget better.

The IRS also uses FTE counts to determine if businesses qualify for health care tax credits. As a reminder, the ACA has determined that a full-time workweek is equivalent to 30 hours. The federal government uses a business’ headcount (defined as FTEs) to determine whether a company complies with federal employee benefits regulations.

Legal and Compliance Considerations

A small business wants to calculate its total FTE for a typical week to see if it qualifies for a particular small business grant. It helps businesses assess the productivity of their workforce, identify areas for improvement, and optimize staffing levels. FTE provides a clear overview of how many employees you have in terms of full-time working hours.

• Their annual planning uses average FTE of approximately 110 rather than peak headcount of 225 or baseline headcount of 75.
• With labor market changes and technological advancements, companies need to be flexible and technologically advanced to optimize their FTE management.
• It’s not just about who’s doing the work, but how much full-time capacity they’re delivering.
• Standard FTE calculations use scheduled hours, but not all scheduled time produces work.
• Regardless of the type of business you’re in, it’s important to keep an updated number of your employees and the hours they dedicate to their work duties.

Expense Tracking

Excel is a powerful tool for calculating FTE quickly and accurately, especially useful for organizations managing multiple employee schedules. By creating a simple formula in Excel, you can automate FTE calculations across departments or employee groups. An FTE of 100% is equal to the amount of work one full-time employee performs within a given time period (a day, week, month, or year). Next, divide the above number by the ideal Online Accounting number of work hours for a full-time employee per month. This is how a company, on average, calculates the average yearly number of hours that a full-time employee works.

By calculating the FTE, you can easily see how much you spend on salary and other personnel costs. 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. The last step is to divide 7,800 (the total number of annual https://jimtait.co.za/2020/03/25/accountant-in-carlsbad-nm-88220/ work hours) by 2,080 (your standard full-time hours). 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. First, let’s look at what full-time equivalent or FTE actually means.