Let's understand FTE definition!

Updated: Dec 31, 2021

In our previous blog, we discussed what is FTE - here is the link in case you missed it!

https://www.scribblr.in/post/what-is-full-time-equivalents-ftes


Now let's take a look at FTE definition!

The total productive hours per week/month/year by an individual employee or worker implies to FTE definition.

Let's understand this terminology in detail by taking an example:

Ms. Nina works for ABC Company as full time employee.


This is her shift length for each day:

10:00_________________________________________________21:00

The total time at office Nina spends is 9 hours

Shift Length - 9 hours

Break - 1 hour

Total time productive - 8 hours

Nina works for 5 days in a week followed by 2 weekly off.


Now let's understand her weekly schedule

Shift Length - 9 hours X 5 days = 45 hours

Break - 1 hour X 5 days = 5 hours

Total Productive Time at work = 8 hours X 5 days = 40 hours

This implies FTE definition per week = 40 hours


The above illustration is for India; As we understand, FTEs and FTE definition is dictated by Country's labor law, these hours can be different based on location where the contact center is deployed.

Employee's financials (Salary) are also based on FTE definition.


Now lets take a look at FTE definition across different countries:

P.S. The above is just for illustrative purpose and may subject to change by each location

US includes a 30min per day paid break as part of the FTE definition; Thus this implies

0.5 hours X 5 days = 2.5 hours paid break per week

FTE Definition for US = 40 hours

Thus, Productive time in US is 37.5 hours and paid break of 2.5 hours equates to 40 hours of FTE definition


Now that we have a thorough understanding of how we calculate FTE definition by week. Let's take a look for FTE definition in a year.

A year has 365 days which breaks down into 52 weeks; Here is the calculation:

India gives 40 hours per week, thus

A year calculation = 40 hours X 52 weeks = 2080 hours


Similarly UK = 37.5 hours X 52 Weeks = 1950 hours

Colombia = 45 hours X 52 Weeks = 2340 hours


Trivia

The FTE definition is one of the major input in identifying the resource requirement for a particular process and hence, we will keep rolling back to this topic as we progress to understand other WFM components.


Until then.... enjoy learning!!!

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