Can anyone explain FTE?

[Daytonite, BSN, RN]

Let me try to explain this better. It took me a while to understand this when I was a new manager.

An fte is defined as the total hours worked (and paid) within a fiscal year (52 weeks) to a full-time worker. If a full-time worker does a 40-hour week then 40 hours x 52 weeks = 2080 hours to be worked and paid in a fiscal year. If a full-time worker does a 36-hour week then 36 hours x 52 weeks = 1872 hours to be worked and paid in a fiscal year. You need to know how your facility or unit defines a full-time worker. One unit in a hospital could be having its nurses doing three 12-hour shifts a week and defining this as one fte of 1872 hours (36 hours per week x 52 weeks) based on a 36-hour work week as being a full-time position; another unit could be doing five 8-hour shifts and defining its one fte of 2080 hours (40 hours per week x 52 weeks) based on a 40 hour work week as being a full-time position.

So, as an example, an employee who works a 24-hour week position at your facility that bases its full-time positions on 40-hours of work a week will show on your manager's budget as a 0.6 fte position because the person will only work 1248 hours during the fiscal year (24 hours per week x 52 weeks) divided by 2080 hours (40 hours per week x 52 weeks).

Most managers are given a budget of x ftes for each worker classification (RN, lpn, nursing assistant, unit secretary) that has been approved by the director of nursing and/or the facility accountant or chief financial officer. A distribution of those hours is worked out when the yearly budget requests are due and they are often set in stone and difficult to change. Overtime is not calculated into this, is considered an expense above and beyond the budget allowance and a cause for worry because it will be addressed on your manager's yearly evaluation.

[goingformydream]

lizzyberry said:

Can anyone explain me in an easy way how to figure out FTE?? Im trying to figure it out so if my manager asks me I know what hes talking about.

I was under the impression that one fte (full time employment) was equal to one 40 hour (or whatever they considered to be full time) employee... so, for example, 1 fte could be 2 employees working 20 hours each (if using 40 hour as full time) Is that what you were looking for?

[Daytonite, BSN, RN]

FTE is a budgeting term that means "full time equivalent". basically, it means one full time worker position. A fte is the number of total hours worked divided by the maximum number of paid hours in a work year. So, if the work year of a full-time employee is 2,080 hours, that would be one fte. Two employees working for 1,040 hours each would take up one fte between the two of them.

[oregonchinamom]

lizzyberry said:

Can anyone explain me in an easy way how to figure out FTE?? Im trying to figure it out so if my manager asks me I know what hes talking about.

FTE means Full Time Equivalency. Basically, 80 hrs in a 2 week period = a 1.0 FTE and any less than that is a decimal. Each 8 hr period in 2 weeks = 0.1 FTE. For instance, if you work 4 eight hr shifts a week, you work 0.8 FTE (8 shifts in 2 weeks). If you work three 12 hrs shifts a week, or 72 hrs in 2 weeks, you would be a 0.9 FTE because you work 8 hrs less than 80.

Hope I didn't confuse you to much!