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How to Calculate FTEs

Definitions:

FTE stands for full time equivalent.

An FTE is the equivalent of one person working full time:

8 hrs./day
X 5 days/week
X 52 weeks/year
= 2080 hours/year

Examples:

  • 1 person working full time = 1 FTE
  • 2 people each working 4 hours per day, 5 days per week = 1 FTE

Tips:

  • FTEs does NOT mean number of employees.
  • An FTE value stays the same over time (except when you adjust your usual staffing pattern). Do not multiply it by days, weeks, or months.

How to Do It:

1. If you know your total number of labor hours for one year: Divide by 2080. This is your FTEs.

Example: Your department's total labor hours as reported to payroll for Jan. - Dec. 1998 were 13,104.

13,104 ÷ 2080 = 6.3 FTEs.

Alternate Method:

If you know your total number of labor hours for one month: Divide by 173.33. This is your FTEs.

Example: Your department's total labor hours as reported to payroll for May 1999 were 3,600.

3,600 ÷ 173.33 = 20.77 FTEs.

Alternate Method:

Calculate the number of labor hours you require in one day. Divide by 8. This is your FTEs.

Example: Your know your daily staffing uses 9 people working 8 hours, plus 1 person working 3 hours. You use some full-time and some part-time employees each day to achieve this.

Your daily staffing = (9 people X 8 hrs.) + (1 person X 3 hrs.) = 75 people hours.

75 ÷ 8 = 9.375 FTEs.