FTE Definition: (full time equivalent definition)
- The definition of FTE
(full time equivalent) is the number of working hours that represents one
full-time employee during a fixed time period, such as one month or one year. FTE simplifies work measurement by converting
work load hours
into the number of people required to complete that work.
calculation is a two step process that determines how many hours of work there
are in a department and how many hours one full time employee works. The total workload
hours are then divided by the working hours of one employee. This calculates the
number of full time equivalents that are needed.
of FTE needed = workload hours / the working hours of 1 FTE in your organization
Modifications to the
and/or productivity will precisely forecast how many FTEs will be required.
management is the analysis, decision making, and implementation processes that determine:
many employees are needed
- the skills each job position needs and the total
available skill hours the department needs
- how work will be
assigned to employees
- how organizational and staff performance will be
whether job positions will be generalists or specialists
which organizational structures will be adopted such as virtual shared
services and expert centers, etc.
These are the minimum essentials that are needed to calculate and manage FTEs
Process performance specifications and expectations
Workload hours for processes and activities
Work standards for processes and activities
Working hours, not scheduled hours, for job positions
Staffing model Excel tool
FTE analysis is
the methodical analysis of current work activities with related time and
cost measures. This helps managers understand the root causes and drivers of workload levels, organizational performance,
and productivity improvement
FTE Models assemble and relate
work measurement data to job positions, processes, products, customer segments, and
other performance drivers.
FTE models are
constructed with statistical tools and methods, and are organized
as data models with charts and graphs. Data models are used because they accurately measure
work metrics such as incidence, time, and cost while also making scenario
forecasting (what if analysis) easy and very accurate.
FTE Analysis Models guarantee that you will:
Increase and optimize productivity
and exceed service quality levels
Define and maintain the skills that your processes need
all of your human resource capacity and skills in the most productive ways
rewarding work and careers to your employees
Rationalize and optimize your organization with the right balance of generalists and
"I've engaged Orient Point Consulting since 2001 at Chubb and
now at XL. I've always been able to solve my problems and achieve my
goals by using their activity information models as my core information
for analysis and planning."
Chief Processing Officer XL Group