Work Hours and Duration

Full-time equivalent (FTE) is the number of hours worked by an employee on a full-time basis.

It’s calculated by dividing the working hours by standard working hours. For example, if the working hours are 20 and the standard working hours are 40, the FTE is 0.5.

Organizations use FTE to determine their employees’ workload; specifically the number of part-time employees required and the hours they work to add up to the same number of hours worked by full-time employees. Hence, the general assumption is that an employee works 2,080 hours annually. This value is derived by calculating the number of hours worked by a full-time worker in a week multiplied by the number of weeks in a year - 8 hours per day x 5 days per week x 52 weeks per year = 2,080 hours.

However, the working hours duration might vary across industries. For example, in the manufacturing sector, an annual number of working hours contract may be in place due to seasonal fluctuations, with only premium pay applicable when the prorated annual hours exceed the specified annual hours. In the education sector, the duration may be linked to the academic teaching timetable.

In such cases, the FTE calculation needs to be adjusted for such employees. These work hours attributes defined in a position help in determining the adjusted FTE.

Standard Working Hours - Standard working hours are usually those of a full-time worker. You define them for the enterprise, legal employer, department, location, job, or position.

If you define standard working hours for more than one work structure, the application uses this hierarchy to derive standard working hours for the position: Job > Location > Department > Enterprise. The application uses this hierarchy to derive standard working hours for the worker assignment: Position > Job > Location > Department > Legal Employer > Enterprise.

Working Hours - Working hours are the same as standard working hours, by default.

Working hours and standard working hours may remain the same. For example, if an employee is working the department's standard working hours, standard working hours and working hours are the same. For part-time workers, there is usually a difference between standard working hours and working hours. Where there is a difference, you update the working hours for the position and the assignment.

Standard Annual Working Duration – You define the standard annual working duration for the enterprise, legal employer, department, location, job, or position.

If you define the standard annual working duration for more than one work structure, the hierarchy to derive the standard annual working duration is same as standard working hours.

Annual Working Duration – Annual working duration is same as the standard annual working duration. The value may differ but the duration is the same as the duration defined for the standard annual working duration.