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How to Convert Hours Into FTE

FTE (full-time equivalent) is a figure used to represent the number of full-time employees for a workplace.The number does not reflect actual people, but rather a simplified count of the hours worked for both part-time employees and full-time employees. To calculate the FTE for your business, you will need to know how to convert hours worked into full-time equivalent units.

Look through your records of work time for one day and determine how many full-time employees you have on staff, and how many part-time employees you have on staff.

Figure the total number of hours worked within an eight-hour work day, by multiplying eight by the number of full time employees. Then multiply the number of part-time employees by however many hours the part-time employees work. Add the two products together. For example: If you have three full-time employees (eight hours per day) and two part-time employees (four hours per day), multiply 8 by 3 to get 24. Multiply 2 by 4 to get 8. Add 24 and 8 to get 32. 32 is the number you will be using for the rest of the formula.

Divide the number of total hours worked by eight (or whatever the length of your workday). This is your number of FTE's. Following the example above: Divide 32 by 8 to get 4. Your result will not always be a whole number, unless you have an even number of part time employees and those employees work exactly half the time of full-time employees.

Things Needed

  • Employee records of worked hours
  • Calculator