Yearly Hours / FTE Hours = FTE Employees Part-Time Yearly Hours + Full-Time Yearly Hours = Total Yearly Hours ĭivide your company's total yearly hours by your Yearly FTE Hours to estimate your "actual" number of full-time employees for comparison with your competitor:
Each of your 15 full-time employees works 2,080 hours per year, which comes to 31,200. In a 52-week year, they work 13,000 hours. Your 10 part-time employees work 25 hours a week, for a total of 250. Instead of just expanding your facility, look before you leap – and calculate your FTE. If your competitor has a 10,000-square-foot facility and you only have 9,000, you might say, “Hey, we have the same number of employees as our competitor – we should increase our factory size to optimize our productivity.” If you compared your business to a competitor with 25 full-time employees, your results would be misleading at best. In your imaginary fidget spinner company, you have 15 full-time and 10 part-time employees. You may have a lot of employees, but they may not spend much time working for you. Part-time employees inflate staff size and skew headcount calculations. It is also useful to compare revenues to facility and staff sizes. You can use FTE to analyze your operations and compare your business to industry standards. You can easily determine your FTE numbers with the FTE Calculator below. In this hypothetical situation, your FTE would equal 800/40=20. Your 10 part-time employees work 20x10, a total of 200 hours a week. Your salaried staff members work 40x15, a total of 600 hours a week. Imagine you run a fidget spinner company with 15 salaried employees and 10 part-time employees. Though I’ll use yearly figures in my examples, you can gain useful insights by calculating monthly (and even weekly) FTEs. Yearly FTE equals the hours one full-time employee works in a year.
#LABOR COST PER UNIT CALCULATOR FULL#
The first FTE question you need to ask is “How many work hours are there in a year?” – knowing full well that your part-time employees don’t work as many hours as your full-time employees. When estimating labor and overtime costs, you can use FTE figures to determine if you can afford a new hire.
Project managers and budget analysts use FTE (Full-Time Equivalent) to convert part-time employee hours into full-time numbers.
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