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Estimate the Personnel Change in FTEs

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Estimate the Personnel Change in FTEs

Use this formula to estimate the Personnel Change in FTEs (full-time equivalents):

(number of people whose time will change) x (percentage of time saved or added)

This helps the Human Resources department with capacity planning.

Examples
  • Outsourcing cleaning reduces time the for 1250 people (25 kitchens at each of 50 locations) by 10%. 1250 people x 10% time = 125 FTEs

  • Introducing touchless takeout requires hiring one full-time front-end supervisor at each of 50 locations. 50 people x 100% time = 50 FTEs.

  • Selling secret sauce at retail involves hiring one full-time merchandising manager in each of four regions. 4 people x 100% time = 4 FTEs

Tips

  • Guesstimates are fine for now. Validators will make needed corrections.

  • Typically 1 FTE = 2,000 hours per year (40 hours per week over 50 weeks). Some companies may use a different standard. Standards may also vary by region.

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