FTE - Full Time Equivalent, a productivity measure
What you'll learn
- How to calculate Full-time Equivalent (FTE). The productivity is based on FTE not HC (Head Count), these details is being explained in this course.
- Understanding its impact on business. These indicators are helpful to ascertain and improve profitability.
- A must course for a manager, entrepreneurs and investor. Because they will learn to find out the optimum balance of staffing in business unit.
- The optimum manning requirement of a business unit is ascertained with FTE calculation. These further assist to improve productivity.
- Two or more business unit productivity level is compared with it. the calculation process and applicability is explained in simple format.
Requirements
- Basic understanding of financial statements
- A working knowledge of spreadsheet, excels is advantageous.
Description
FTE stands for 'Full-time equivalent'. This helps in understanding the productivity level of staff for any business unit.
FTE analysis reveals the optimum level and accurate productivity level of the workforce. It is sometimes confused with Actual headcounts. Actual Headcount, popularly known as 'HC', represents the actual number of staff in any business. With a new recruitment or resignation of staff, there will be a change in HC.
FTE is a count of the actual number of hours used by active staff in the business. It is quite fluid because the actual number of staff hours used in businesses is based on the business requirements, i.e., staff leaves/holidays change their working days/hours.
If any business operates on part-time staff(PT) or casual staff(CS), then it is easy to inflate and reduce the number of staff working on the business unit, thus making the FTE concept more useful.
It is a process of managing payroll costs by managing FTE.
The challenge that we may face is if the staffing is based on FT (Full-time permanent staff), then it will be difficult to reduce the actual working hours.
Managers must assess the requirement of FTE based on business, on books, or weekly trend to ensure proper control of working days or hours of staff.
This course explains the link between FTE and Productivity.
Anyone after completed this course can start using the FTE and Productivity model in their businesses and take the benefit.
Who this course is for:
- Business owners, finance professionals, Human Resource professionals and Managers
- Investors to compare multiple business units.
Instructor
- 3.9 Instructor Rating
- 22 Reviews
- 992 Students
- 2 Courses
I have been working in the hospitality industry for over 30 years. My working journey in various countries includes working at different levels of business, from the project stage to pre-openings, hotel take-overs, and operations.
I am passionate about reviewing processes that allow for building a fabulous structure for pre-opening and operating hotels & resorts.
Feel free to tell what you think and give feedback in the Forum. You can email me your suggestions or views. If you need more help, you can simply type your questions into the Forum and I will respond to you.
Thank you for the support and feedback!