The Full-Time Equivalent (FTE) is a unit of measure used to quantify the workload of an employee or the amount of full-time employment, considering part-time workers. It's a way to standardize the measurement of labor input, especially when dealing with a workforce that includes individuals working varying hours.
Essentially, one FTE is equivalent to one person working full-time. For example, if a standard full-time work week is considered 40 hours, then two employees each working 20 hours per week would collectively represent 1.0 FTE (20 + 20 = 40 hours).
How the FTE Calculator Works
This calculator simplifies the process of determining your organization's total FTE count. It uses a straightforward formula:
FTE = (Total Hours Worked by All Staff) / (Standard Work Hours for One Full-Time Employee)
To use the calculator:
Total Hours Worked by All Staff: Enter the sum of all hours worked by every employee within a specific period (e.g., a week, a month, a year). This includes both full-time and part-time staff.
Standard Work Hours for One Full-Time Employee: Enter the number of hours considered a standard full-time workweek (or month/year, depending on the period chosen for total hours). This is typically defined by your company policy or local labor laws.
The result will show you the total FTE for your workforce over the specified period.
Why is FTE Important?
FTE is a crucial metric for various aspects of business management:
Staffing and Resource Planning: It helps in understanding the actual labor capacity and planning for hiring or adjusting workloads.
Budgeting and Cost Analysis: FTE figures are essential for calculating labor costs, payroll, and benefits per full-time equivalent.
Compliance and Reporting: Many government regulations (like those related to healthcare or labor statistics) require reporting based on FTE counts.
Productivity Measurement: FTE can be used to normalize productivity metrics across different team sizes and working arrangements.
Performance Evaluation: It provides a standardized unit to compare the output of different departments or the organization as a whole.
Example Calculation
Let's say your company operates on a 40-hour work week. In a particular month, the total hours logged by all employees (full-time and part-time) is 6,400 hours.
Assuming a standard full-time employee works 160 hours per month (40 hours/week * 4 weeks/month), the calculation would be:
FTE = 6,400 hours / 160 hours/FTE = 40 FTE
This means your workforce collectively represents the equivalent of 40 full-time employees for that month.
function calculateFTE() {
var totalHoursInput = document.getElementById("totalHours");
var standardHoursInput = document.getElementById("standardHoursPerFTE");
var resultDiv = document.getElementById("result");
var totalHours = parseFloat(totalHoursInput.value);
var standardHours = parseFloat(standardHoursInput.value);
if (isNaN(totalHours) || isNaN(standardHours)) {
resultDiv.innerHTML = "Please enter valid numbers for both fields.";
return;
}
if (standardHours <= 0) {
resultDiv.innerHTML = "Standard hours per FTE must be greater than zero.";
return;
}
var fte = totalHours / standardHours;
// Displaying the result with units and context
resultDiv.innerHTML =
'Calculated FTE: ' + fte.toFixed(2) + '' +
'(Based on ' + totalHours + ' total hours and ' + standardHours + ' standard hours per FTE)';
}