Companies can also expand the same formula when considering annual hours. To see your employees’ FTEs, you can view their daily/weekly/monthly assignments in Clockify. An FTE calculation for all employees in a company needs to be rounded down to the nearest whole number (usually, 1.0 FTE or greater). We’ll also show you how to perform various calculations that involve FTEs, and provide you with automatic calculators that will help make the process easier.
- Managing employees, time tracking, overtime, and time-off data in disparate systems is complicated.
- 100% FTE or 1.0 FTE refers to one full-time employee or a number of people who make up the duties of one full-time position.
- For example, if an employer hires two employees to work part-time, each working 20 hours a week, the total FTE for those employees would be 1 (i.e., 0.5 FTE for each employee).
- 2,080 hours are worked by a full-time employee who works 52 weeks a year.
- In simple terms, 100% FTE equals 1.0 FTE — it might be used to identify an individual employee who’s working full-time or a few people who work the equivalent of one FTE.
Monique Danao is a journalist and freelance writer who has worked with several startups and tech companies. Her work has been published in Sitepoint, Fast Capital 360, Social Media Today, WPMayor among other publications.
How to calculate a full-time equivalent
That would mean that a full-time employee would work an approximate of 40 hours a week and 160 hours a month. Now determine the number of hours worked by full-time employees over a given period. Full-time employees are those who work bookkeeping for startups a minimum of 30 and a maximum of 40 hours a week and more than 120 days a year. Let’s say that Sarah is a part-time employee who works 28 hours per week. Her company has a 5-day work week, and full-time employees work 8 hours daily.
An FTE salary is an employee salary converted into a full-time equivalent salary within a full year, regardless of whether the said employee holds a full-time or part-time position. The actual workload is not taken into consideration for this calculation. Let’s say that a full-time weekly schedule in your company is 40 hours per week, and your employees are scheduled with 40 hours of work a week. This is a straightforward example since each employee who works 40 hours per week in your company has a 1.0 FTE. Since both are considered to be full-time schedules in their respective companies, both count as a 100% or 1.0 FTE. FTE is used to determine staffing needs for projects by comparing the time that a person would work if they were working full-time to the number of hours they will actually work.
Time Card Calculator
For example, if an employee has an FTE of 0.80, multiplying that number by 40 means that an employee works 32 hours a week. Day.io offers a comprehensive solution for convenient and accurate FTE calculation to aid in this process. By streamlining workforce management, Day.io ensures optimal leverage of your human capital, aligning it with your business objectives.
- You can contrast your staffing level with your competitors in your industry after converting part-time meters to FTEs.
- To help you determine if you are eligible for a small-employer healthcare tax credit, you need to count the number of employees employed in your company throughout the year.
- For example, if an employer considers 40 hours per week as full-time, employees who work 40 hours each per week count as 1.0 FTE, while those that work 20 hours per week, or part-time, make 0.5 FTE.
- A full-time equivalent (FTE) is also a way of quantifying the workload of a project or team in terms of the amount of time it would take to complete.
Whether you are looking to expand your business internationally, outsource your operations, or take on more remote staff contact us today to discuss your needs. The FTE is calculated by taking into account the number of hours worked in a full-time weekly schedule and the actual number of hours employees work. Let’s say you feel strongly that there is a discrepancy between what part-time staff are getting done compared to full-time employees. This is just a gut feeling, but FTE allows you to put science behind that feeling. With FTE, you can compare the work that each cohort does in a more accurate way, understanding the productivity levels with the right data to hand.
What is Full Time Equivalent (FTE)?
Next, you need to divide the total hours worked by all employees (1150) by the number of hours in a full-time work week (40). This gives you a figure of 29, meaning that your business has 29 FTEs. To calculate Sarah’s FTE, we need to divide her hours worked (28) by the number of hours worked by full-time employees (40). This gives us a figure of 0.7, which means that Sarah is equivalent to 0.7 FTEs. If an organization considers full-time to be a 40-hour working week then one full-time employee will count as 100% FTE.