FTE Calculations

Frenchie

Hi All,
I am calculating FTE for our warehouse, and I want to make sure I'm doing it correctly. I am taking ytd regular hours and dividing it by 2080. I am then taking ytd overtime hours, multiplying that number by 1.5, and then dividing by 2080. I am not including vacation, personal days or holidays in the calculation. Is this the correct way to do it?

LarryC

What is FTE?

Frenchie

Sorry about that. Full Time Equivalent. It gives you the number of full time employees needed based on hours worked.

LarryC

Ok, Frenchie, now I get it. Thanks. Why are you multiplying OT hours X 1.5? When one works overtime, they don't need 1.5 hours to do an hour's worth of work.....theoretically. Also, I would include the vacation, holidays, etc. When people are gone, you still need someone to do that work....theoretically. In real life, others just plain "step up", supervisors jiggle the schedule around, and you "cover" for the missing person. If you are confident that that is being done in your environment, then I wouldn't include the PTO.

I hope I helped more than confused.

HRCalico

I do things a little differently, but it could be you are looking for a different result that I get.

For part-time people, I take their number of hours scheduled for a week and divide by 40. Since I work 25 hours per week, I am 0.625 FTE. One office person works 24 hours per week, so she is .60 FTE. The 35 hour per week person is .875 FTE, and so on. Regular, full-time people count as 1 FTE. I then add up everything, and there is my total. In my example, the 3 people add up to 2.1 FTEs.

Can you tell us a little more about what end result you want?

Frenchie

We are looking at headcount over the past three years. The manager was initially counting people employed during that year, but that doesn't give you an accurate picture because not all of the people worked the full year. So, I am taking total hours worked by everyone in the department to determine the FTE. The only thing I'm not sure about is the OT. I was multiplying those hours by 1.5 because it costs us 1 and 1/2 hours for each hour worked. I didn't include the vacation and personal days because others in the department would cover those absences and that would be reflected in the OT hours. What I am trying to prove is that the headcount has either increased or decreased from one year to the next.

lnelson

Frenchie,
For what you are trying to accomplish your formula is correct in determining true ee count.

Frenchie

Thanks everyone.