How Do I Calculate Full-Time Equivalent (FTE) Hours?

Calculate Full-Time Equivalent (FTE) hours by dividing an employee’s scheduled hours by the employer’s full-time week hours. FTE calculations help businesses benchmark income per employee and convert part-time hours into full-time equivalents.

By Brad Nakase, Attorney

Email | Call (888) 600-8654

Have a quick question? I answered nearly 1500 FAQs.

Table of Contents

1. Introduction

2. Understanding Full-Time Equivalent (FTE) Calculation

3. Practical Examples of FTE Computation

Introduction

The scheduled hours of an employee divided by the number of hours of the employer during a full-time week is the full-time equivalent, or FTE, computation. When a company implements the forty-hour workweek, workers who are slated for 40 hours a week are considered 1.0 full-time equivalents. 0.5 FTEs are workers with a 20-hour workweek plan.

Understanding Full-Time Equivalent (FTE) Calculation

To calculate the FTE for an employee with a 35-hour workweek, an employer would only divide the scheduled hours by 35. For instance, when the full-time week consists of 35 hours, an employee who is expected to work 21 hours a week would make up 0.6 FTE.

Practical Examples of FTE Computation

Hours worked, not employee count, are the basis for FTE computations. One FTE could work alongside four employees. 1.0 FTE would be four 0.25 employees. One FTE, or 40 hours performed according to a workweek of 40 could be achieved by Amir, Mark, Sue, and Phyllis if they each worked 10 hours a week.

To benchmark income or earnings per employee, for example, employers may utilize the FTE calculation. For the purpose of computing these indicators, it can be useful to convert the hours performed by part-time staff members into equal full-time hours.

Counting FTEs is required by some regulations, such as the Affordable Care Act (ACA), which defines exactly how an FTE is computed and how a company must apply the regulations to its business.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment Law

Most recent blogs:

Sales Associate Job Description: Key Elements and Tips

Enhance your hiring process with a clear and concise sales associate job description that outlines role expectations, responsibilities, and qualifications. Attract qualified candidates by highlighting key components like job title, company details, and benefits to ensure a perfect match for your team.

How Do I Calculate Full-Time Equivalent (FTE) Hours?

Calculate Full-Time Equivalent (FTE) hours by dividing an employee's scheduled hours by the employer's full-time week hours. FTE calculations help businesses benchmark income per employee and convert part-time hours into full-time equivalents.

What is Talent Acquisition? Strategies and Best Practices

Efficient talent acquisition involves developing and implementing strategies for sourcing, hiring, and retaining the best talent. Key elements include workforce planning, recruiting, legal compliance, and leveraging technology to streamline the hiring process.

What Diversity in the Workplace Means and Why It’s Essential for Team

Diversity in the workplace enhances creativity, problem-solving, and employee satisfaction. Inclusive environments foster innovation, improve decision-making, and boost overall company performance.

Understanding and Developing Organizational Culture

A strong organizational culture aligns employees with company values, ensuring consistent behavior and recognition. Effective hiring, training, and reward programs reinforce this culture, driving company success.

Gross Pay vs Net Pay: What’s the Difference?

Gross pay is the total amount earned before deductions, while net pay is the take-home amount after withholdings. Employers benefit from understanding these concepts to manage payroll and negotiate salaries effectively.

How to establish a Performance Improvement Plan

A Performance Improvement Plan (PIP) addresses behavioral issues and unmet objectives to enhance performance. This guide covers assessing the need, creating, implementing, tracking, and concluding a PIP effectively.

FLSA status: Exempt vs. Non-exempt

FLSA status classifies employees as non-exempt or exempt, affecting overtime pay eligibility. This ensures compliance with labor laws and protects workers' rights.

What is a disciplinary action?

Disciplinary action involves measures against employees for misbehavior or poor performance. Managers decide appropriate actions based on the infraction's severity, ensuring fairness.

What is a grievance (and how do you address one)?

Learn to manage workplace grievances effectively to maintain harmony and legal compliance. Equip yourself to resolve issues and support a positive work environment.

HR Manager Interview Questions

Prepare for your HR manager interview with insights on key questions, ensuring you present your best qualities and understand role-specific expectations. Equip yourself with responses that highlight your experience and alignment with the company's values.

New Employee Orientation Guide

Optimize new employee orientation with our guide on strategies and benefits; learn how to implement the ROPES model for effective onboarding.

Job Requisition Meaning

A job requisition is an official request to open a new position within a company. This article defines job requisitions, their significance, and essential components.

Automation in HR: Streamline efficiency

HR automation speeds up routine tasks, allowing HR teams to focus on strategic initiatives and employee engagement. This technology enhances efficiency, reduces errors, and improves overall workplace satisfaction.

Graphic Rating Scale in HR

The graphic rating scale is a straightforward tool for evaluating employee performance based on specific qualities and behaviors. It offers simplicity, cost-effectiveness, and ease of understanding but can suffer from subjectivity and biases.

Titles for HR: Key job roles

Explore key HR job roles, salary ranges, and essential qualifications in the expanding human resources field. Learn about popular HR positions and chart your career path in this dynamic industry.

People analytics: Importance and benefits

People analytics is crucial for data-driven HR decisions, improving workforce planning and talent management. Organizations like Google and NASA use it to enhance recruitment, performance, and employee engagement.

What is DEIB: Key concepts explained

Understand DEIB (Diversity, Equity, Inclusion, and Belonging) and its impact on business success. Discover strategies to promote DEIB in your organization.

Clan culture: Building organizational unity

Discover the benefits of clan culture in organizations, emphasizing loyalty, teamwork, and flexible management. Learn how this collaborative environment enhances employee engagement and organizational success.

Learning vs. Training: Key differences

Distinguish between learning and training in the workplace. Learning involves continuous skill development, while training focuses on specific task instruction for immediate job needs.

Organizational commitment: Key strategies

Organizational commitment boosts employee morale, productivity, and reduces turnover, leading to a more effective business. Learn key strategies to foster commitment, including clear communication, job satisfaction, and fair compensation.

Skill Will Matrix

The Skill Will Matrix is a powerful tool for leaders to enhance talent management and employee engagement. This article details how the matrix helps managers tailor interactions based on employees' skills and motivation, driving improved performance and productivity.