The Full-time equivalent (FTE) Calculator helps you compute a measure used to determine the number of full-time employees that a business has. It takes into account part-time workers, contractors, and other staff who may not work full-time hours, by calculating their hours worked relative to a full-time employee.
Input required:
# full-time employees
hours(full-time)
# part-time employees
hours(part-time)
FTE = [# full-time * hours(full-time) + # part-time * hours(part-time)] / hours(full-time)
Example:
# full-time employees | 10 |
hours(full-time) | 40 |
# part-time employees | 10 |
hours(part-time) | 20 |
FTE = (10*40 + 10*20) / 40 = 15
Calculating the FTE is relevant for businesses because it helps them to accurately calculate labor costs, plan and allocate resources, and ensure that they are meeting any legal requirements regarding employee hours and benefits. It also helps to provide a more accurate picture of the size and composition of a company's workforce.
In Europe, full-time employment is generally defined as working 35-40 hours per week. Many countries have laws and regulations in place that govern working hours, minimum wage, and benefits for full-time employees. For example, in the European Union, the Working Time Directive sets a limit of 48 hours per week that employees can be required to work, and requires employers to provide rest breaks and annual leave to their workers.
In other parts of the world, the definition of full-time employment and labor laws may vary. In the United States, for example, there is no federal definition of full-time employment, but it is generally considered to be 30-40 hours per week.
Best practices for managing full-time equivalent employees may also vary by region and industry. Some companies may choose to offer flexible work arrangements, such as telecommuting or compressed workweeks, to help retain full-time employees and improve work-life balance. Other companies may focus on providing competitive salaries and benefits packages to attract and retain full-time staff.
