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Annual Hours per FTE
IN THIS ARTICLE
Calculating Annual Hours per FTE
FTE Tree's primary function is to calculate FTEs, so it's crucial that we calculate your FTEs correctly. The annual hours per FTE help us achieve this.
There are two typical ways you may wish to enter positions into FTE Tree, and we are well-prepared to handle both scenarios. FTE Tree reports annual totals for positions, as would be used in a typical budget cycle. To obtain those annual costs for your position control, you may enter the data as follows:
Option 1: Entering Hourly Wage Rates (Recommended)
When configuring FTE Tree to calculate annual position costs based on an hourly wage rate, we need to know the number of hours to multiply the base hourly wage rate by to get an annual total.
Typically, this value is 2,080, which is equivalent to 40 hours per week for 52 weeks in a year. However, you may enter any value you wish, with up to two decimal places.
Option 2: Entering Annual Base Rates (Less Common)
If you prefer to enter an annual rate for the position, you may input a base wage rate for the entire year and enter an annual hours per FTE of 1. This method effectively uses the annual wage rate for your calculations.
When choosing this method, please be aware of the impact on position differentials and how you enter them. Our flexible differential methodology can fully support this, but please note that the differentials must also be entered accordingly, as the base values will effectively be the same as entering an annual differential amount.
Other Considerations
If your organization chooses to use any combination of time periods, such as a month or quarter, although we don't envy you, we can fully support that as well. Simply enter the number of annual hours in each period of time you wish to use, and FTE Tree will multiply the base rates to get an annual total.
If you have a different number of annual hours per FTE each year, you can enter as many history records as you need. FTE Tree will use the appropriate value when calculating the point-in-time cost, whether it is the current time, already past, or in the future.
For example, if you want to use 2,080 hours for the 2022 calendar year, enter '01/01/2022' with a value of 2,080. If you then switch to 2,088 hours for the 2023 calendar year, enter '01/01/2023' with a value of 2,088.