How is the FTE calculated for an employee?

The correct method for calculating Full-Time Equivalents (FTE) involves understanding the ratio of actual hours worked in a given timeframe compared to a standard set of hours for full-time work. Dividing the total hours worked in a week by a common benchmark for full-time work allows organizations to assess how many full-time equivalent positions are represented by part-time employees.

The rationale behind using hours worked per day multiplied by the days worked in 2 weeks, then dividing by 75 hours, is based on the recognition that a standard full-time employee is typically expected to work about 75 hours over a two-week period in certain contexts, especially where a standard workweek is less than 40 hours. This approach standardizes the hours for comparison, facilitating the calculation of FTEs in a way that reflects organizational norms.

In this context, the choice reflects a method of breaking down part-time hours into a scale that is comparable to full-time hours, providing a clearer picture of staffing levels and resource allocation. Keeping in mind the total possible hours helps organizations manage and analyze workforce data effectively, ensuring compliance and proper planning.