The formula to calculate Full-Time Equivalent (FTE) is:
\[ \text{FTE} = \frac{\text{Total working hours in a week}}{\text{Weekly working hours of a full-time employee}} \]
Full-time equivalent is a measure that shows how many full-time equivalent employees a certain company employs. This helps you compare and analyze the amount of work being done, even if your employees work odd hours.
Let's consider a company with the following details:
To calculate the FTE:
Total full-time working hours in a week = 3 * 40 = 120 hours
Total part-time working hours in a week = 5 * 20 = 100 hours
Total working hours in a week = 120 + 100 = 220 hours
FTE = 220 / 40 = 5.5
This means that our current setup would be the same if we had 5 full-time employees and 1 part-time employee working 20 hours a week.