Even if you have an office full of employees that are work ing full-time hours with no vacations, holidays or absences during a particular week, their capacity for project work is not 100%. It’s really important to think about what your employees’ actual capacity is. A significant resource planning mistake is to assume that people work on projects 100% of the time.
#Fte calculation tool how to#
So, you now know how to calculate FTE based on calendars and absences, but there is more you need to consider when it comes to FTE. Once you’ve defined full-time hours, you can calculate FTE by dividing the amount of time an employee works by your full-time hours : Maybe your office closes early every other Friday or maybe some employees work longer shifts. follow a 40-hour workweek to represent full-time work, but this might not be the case for your organization. To determine full-time hours for your company, you’ll need to know which days are considered workdays, which days are holidays and how many hours a day people typically work. Certain industries include weekends as workdays while others don’t. likely has a few different holidays than someone in Canada. It’s unlikely you are making mistakes regarding how much an employee is working, so let’s break down how a company determines what its full-time hours are.ĭepending on location and industry, employees may follow different calendars. (2) how many hours an employee is working. (1) what is considered full-time hours for a company and You’re probably already familiar with FTE, but if you are experiencing a lot of resource conflicts, the issue could be how you calculate FTE. FTE is a unit of measure that indicates the amount of capacity or availability of an individual to work during a specified time period. First, you need to understand the Full-Time Equivalent or FTE of employees. A resource planning formula will use several important variables.
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