This will give you your total FTE for all full- and part-time employees for the year. You can use the FTE total each week, month, or year to determine company growth. You can also use the FTE total to remain compliant with federal, state, and local labor laws that may be based on employer size such as mandatory sick time laws.
First, it is necessary to determine the number of hours worked by part-time employees. In our hypothetical scenario, our company has the equivalent of 52.40 full-time employees. By adding the full-time and part-time hours worked, we can calculate the total number of hours worked https://www.bookstime.com/articles/bookkeeping-for-landscaping-business by all employees for the year as 109,000. Suppose a company currently has 50 full-time employees on its payroll, along with 10 part-time employees. In practice, FTE is measured by companies to estimate the number of full-time employees employed within a specific time frame.
Calculating FTE Manually
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. Therefore, before making a decision using the FTE metric, it is best to check if there are any rules or requirements worth considering.
To convert an employee’s full-time equivalency into standard hours, multiply their FTE rate by 40. For example, if an employee has an FTE of 0.80, multiplying fte meaning that number by 40 means that an employee works 32 hours a week. However, many employers have experimented with a 4-day workweek in recent years.
