Full Time Equivalent (FTE)
Work measures are ways of accounting for a worker's time on an assignment. Work measures are of two types: FTE and Headcount. In this topic, let's understand some concepts related to FTE.
Derived Standard Working Hours
Derived standard working hours are usually those of a full-time worker. You define them for the enterprise, the legal employer, the department, the location, the job, or the position. For example, if the standard working hours derived from any of the work structure objects is 40 weekly, and you specify the assignment standard working hours as 50 weekly, the assignment standard working hours are considered for calculation of adjusted FTE.
If you define the standard working hours for more than one work structure, the application uses this hierarchy to derive the standard working hours: Position > Job > Location > Department > Legal Employer > Enterprise, if a value is specified.
You can specify the working hours for an assignment in these ways:
- Fixed hours: Enter the total hours for a week in the Working Hours field.
- Variable hours: In the Assignment Hours Details window, enter the worker's availability for each day. For example, you can specify the start and end time of the worker's shift or the number of hours in the shift.
Working Hours
Working hours is an editable attribute in the worker assignment and you can specify a different value for each assignment. This value is used in calculation of the FTE.
You can specify the working hours and standard working hours for a position. If a value is specified for the working hours in the position, it’s defaulted in the assignment. Else, when you change the position, the working hours are defaulted from the standard working hours hierarchy: Job > Location > Department > Legal Employer > Enterprise in that order.
Assignment Standard Working Hours
Assignment standard working hours is an assignment level attribute, when specified will override the standard working hours derived from the work structures. If specified, this attribute is used in FTE calculation instead of the derived standard working hours.
Standard Working Hours Override (GB)
This attribute is applicable only for the Great Britain (GB) legislation. If you enter a standard working hours override, this hierarchy is used to derive the standard working hours: Standard Working Hours Override > Position > Job > Location > Department > Legal Employer > Enterprise.
If you enter a standard working hours override, this attribute is used to derive the standard working hours. The standard working hours override frequency is considered to be the same as the assignment working hours frequency. If you enter both the standard working hours override and the assignment standard working hours, then the standard working hours override takes precedence.
If you're not using both attributes, then it's recommended you use the assignment standard working hours instead of the standard working hours override attribute.
FTE
The FTE for a worker is calculated by dividing the assignment working hours by derived standard working hours. For example, if the assignment working hours are 20 and the derived standard working hours are 40, the FTE for the assignment is 0.5. If there are no standard working hours defined for the enterprise, legal employer, department, location, job, or position, then the FTE value is 0 on the Assignment page. If the transaction is done from HDL or REST, then an FTE record isn’t created in the PER_ASSIGN_WORK_MEASURES_F table.
The FTE is rounded off to 10 decimal points in the responsive employment pages.