Calculating FTEs
Definitions:
FTE stands for full time equivalent.
An FTE is the equivalent of one person working full time:
8 hrs./day
X 5 days/week
X 52 weeks/year
= 2080 hours/year
Examples:
- 1 person working full time = 1 FTE
- 2 people each working 4 hours per day, 5 days per week = 1 FTE
Tips:
- FTEs does NOT mean number of employees.
- An FTE value stays the same over time (except when you adjust your usual staffing pattern). Do not multiply it by days, weeks, or months.
How to Do It:
1. If you know your total number of labor hours for one year: Divide by 2080. This is your FTEs.
Example: Your department's total labor hours as reported to payroll for Jan. - Dec. 1998 were 13,104.
13,104 ÷ 2080 = 6.3 FTEs.
Alternate Method:
If you know your total number of labor hours for one month: Divide by 173.33. This is your FTEs.
Example: Your department's total labor hours as reported to payroll for May 1999 were 3,600.
3,600 ÷ 173.33 = 20.77 FTEs.
Reference:
Legvold, Dee, and Salisbury, Kristi. Foodservice Management by Design. Association of Nutrition & Foodservice Professionals, 2nd Edition, 2018.