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Horizons can support your business by helping you hire full-time employees anywhere in the world. Whether you are looking to expand your business internationally, outsource your operations, or take on more remote staff contact us today to discuss your needs. The 2,080 figure can be called into question, since it does not include any deductions for holidays, vacation time, sick time, and so forth. Alternative measures of FTE that incorporate these additional assumptions can place the number of hours for one FTE as low as 1,680 hours per year. The exact number will depend on the country where the employment is occurring, since the number of holidays varies by country. In short, full-time equivalency (FTE) represents an employee\u2019s total hours worked divided by the number of compensable hours in a full-time schedule during a fiscal year.<\/p>\n

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This calculation can be very confusing if you\u2019re not used to it, so to make things as clear as possible, let\u2019s look at an example for calculating the FTE of a single employee. However, this formula has a few variations, depending on what you want to include. For example, you can choose to include only paid hours or both paid and unpaid hours (such as overtime). This is because the purpose of an FTE is not to see how many employees you have, but rather to measure the amount of work that\u2019s being done. In other words, it allows you to compare different types of staffing arrangements on a level playing field. When using FTE alongside other performance metrics, it can become easier to understand per-employee costs and output in a large organization.<\/p>\n

What is Full-time Equivalent (FTE)?<\/h2>\n

\u201d question for more information on how to calculate the number of FTEs. However, if you pay your interns, you will need to include them in your calculations. One of the most common yet often perplexing compliance concerns HR teams encounter is calculating FTE, or full-time equivalency. From what it is and why it’s used to how to calculate the number, find out everything you need to know about how to calculate FTEs. FTE is a crucial term in project management for resource allocation. Keep on reading to learn what FTE is, how it is calculated, and how it is used in project management.<\/p>\n