How to Calculate Average FTE per Month: A Step-by-Step Guide
Learn how to calculate the average FTE per month effectively and understand workforce utilization metrics.
12 views
To calculate average FTE (Full-Time Equivalent) per month: Add up the total hours worked by all employees in a month. Divide this number by the total number of working hours in that month for a full-time employee (usually 160-176 hours). For instance, if your team worked a total of 880 hours in a month where a full-time employee works 160 hours, your average FTE would be 880 / 160 = 5.5. This provides a clear measure of overall workforce utilization.
FAQs & Answers
- What is FTE in human resources? FTE, or Full-Time Equivalent, is a way to measure a worker's involvement in a project, calculated as a ratio of total hours worked to full-time work hours.
- Why is calculating average FTE important? Calculating average FTE helps organizations understand resource allocation, staffing needs, and overall workforce utilization.
- How can I improve my workforce utilization? To improve workforce utilization, analyze work hours, adjust staffing levels based on demand, and ensure efficient task management.
- What are the standard full-time hours for FTE calculation? Typically, full-time hours for FTE calculation range between 160 to 176 hours, depending on company policy.