How often do you find yourself wondering about the efficiency of your workforce? Full-Time Equivalent (FTE) can help you answer this question and so much more.
In this blog post, we will explore the main capabilities of FTE in Workday, how it aids in helping users calculate and manage FTE, and how our team of Workday consultants can transform your organization’s workforce and resource allocation initiatives.
- FTE is a valuable tool in Workday for workforce management, resource allocation, and future staffing strategy decisions.
- Organizations must define full-time and part-time employees to ensure accurate FTE calculations, and Workday provides tools to accurately and efficiently track employee work hours.
- Best practices, such as regular data updates, compliance with labor laws & company policies, and monitoring FTE trends, can help organizations optimize workforce management in Workday.
What is FTE in Workday?
FTE is a powerful metric that can help organizations optimize their workforce management and make informed decisions about staffing and resource allocation. By leveraging the capabilities of Workday, organizations can calculate FTE, analyze FTE data, and adjust FTE values as needed over time.
Understanding FTE in Workday
Full-Time Equivalent (FTE) determines the workload of full-time equivalent employees and assesses their productivity. Workday, a comprehensive cloud-based software, is crucial in managing HR, finance, and planning processes, including FTE calculations.
Grasping the concept of FTE and its role in Workday enables organizations to fine-tune their workforce management, allocate resources effectively, and strategize for future staffing needs.
What is Workday?
Workday is a comprehensive software solution that offers unified finance, human resources, and employee lifecycle management applications.
It is designed to cater to a wide range of customers, including companies with thousands of employees and millions in revenue. Workday empowers organizations by providing a single platform for managing employee data and optimizing HR and financial processes.
One of the key features of Workday is its ability to manage employee work hours and calculate work hours for both full-time and part-time employees. This makes it an ideal tool for organizations looking to better understand and manage their workforce and plan for future staffing and resource allocation.
The Role of FTE in Workday
FTE is a fundamental component of Workday, aiding organizations in workforce management, resource allocation, and future staffing strategy.
It is used to evaluate the workload of personnel, calculate work costs for projected project workload, and determine eligibility for certain benefits, even if employees do not work full-time and have not worked an entire year.
FTE in Workday enables organizations to:
- Make informed decisions about staffing and resource allocation, ensuring they are aligned with critical business objectives
- Analyze FTE data to glean important insights into resource allocation, workforce planning, and productivity levels
- Facilitate informed decision-making in the Workday system
Calculating FTE in Workday
Calculating FTE in Workday involves defining full-time and part-time employees, entering employee work hours, and using the FTE calculation formula. This calculation provides a standardized measure of employee availability, offering more significant insights than headcount alone.
Accurate calculation of FTE empowers organizations to manage their workforce effectively and make informed decisions regarding resource allocation and planning.
Defining Full-Time and Part-Time Employees in Workday
In Workday, organizations must define full-time and part-time employees and workers based on their specific policies and labor laws. Typically, full-time employment is defined as 40 hours per week, while part-time employment is any schedule below the full-time hours. A full-time schedule usually consists of 40 hours per week.
Defining full-time and part-time employees allows organizations to ensure that their calculations accurately reflect the working hours and workload of their full-time employees and part-time employees.
Entering Employee Work Hours in Workday
Precise entry of employee work hours in Workday is crucial for accurate FTE calculation.
Users can access the Workday Time or Time Tracking application, select the week to enter, input the hours worked, and submit the data once completed for the week. Accurately entering employee work hours ensures proper approval and compensation, adherence to labor laws, and transparency and accountability in the system.
Workday offers the following tools and features for tracking employee work hours, ensuring that organizations can manage their workforce for all the hours they need:
- Making it easier for organizations to manage their workforce
- Ensuring accurate FTE calculations
- Allowing users to adjust or modify entered work hours as needed
- Ensuring any changes in employee status or workload are accurately reflected in the system.
FTE Calculation Formula in Workday
The FTE calculation formula in Workday involves dividing the total hours worked by the standard full-time hours. For example, if a full-time employee works 40 hours per week and a part-time employee works 20 hours per week, the part-time employee’s FTE would be 0.5 (20 hours / 40 hours).
Using this formula, organizations can readily determine each employee’s FTE, which aids in optimizing workforce management and resource allocation.
Analyzing FTE Data in Workday
Analyzing FTE data in Workday facilitates workforce planning, reporting, and analytics.
Examining FTE data allows organizations to spot patterns and trends, allocate resources more efficiently, and make decisions about staffing and resource allocation based on data.
This section delves into Workday’s robust reporting and analytics features that empower organizations to scrutinize FTE data and enhance their workforce management.
Workforce Planning with FTE
By monitoring FTE trends, organizations can identify areas of overstaffing or understaffing and make adjustments to optimize workforce efficiency, resulting in improved productivity, cost savings, and better alignment of resources with business needs.
Workforce planning with FTE in Workday enables organizations to:
- Make informed decisions about staffing and resource allocation
- Create what-if scenarios to determine hiring needs
- Link workforce plans to financial models
- Track headcount plans and related costs
This allows organizations to continuously improve their workforce by deploying the right people at the right time and optimizing the team talent mix for their business through effective project management. FTE data can also be used to analyze workforce trends and make necessary adjustments to optimize workforce management.
Reporting and Analytics in Workday
Workday provides a suite of workforce analytics and reporting tools to facilitate analytics with FTE data. These tools enable users to analyze data, access workforce, and financial analytics, and gain insights from talent and skills data.
Workday also offers augmented analytics applications and connects enterprise applications to a unified data model for improved decision-making.
Workday offers robust reporting and analytics features that help organizations analyze FTE data and make data-driven decisions and allow users to:
- Create custom reports to generate insightful data outputs related to FTE, compensation, and other pertinent fields
- Utilize Workday’s analytics capabilities to create reports, dashboards, and charts
- Comprehend FTE trends, identify patterns, and make informed workforce planning and management decisions.
Adjusting FTE in Workday
Adjustments to FTE in Workday necessitate modifying employee status and updating workload and FTE values, ensuring organizations have accurate data for workforce planning and resource allocation.
This section outlines how to modify employee status in Workday and update workload and FTE values as needed.
Changing Employee Status
Changing employee status in Workday can influence FTE by adjusting the scheduled weekly hours and FTE percentage. For example, if employees transition from full-time to part-time status, their FTE will be adjusted accordingly. This change can be initiated by utilizing the Change Job business process.
Workday allows users to change employee status by following these steps:
- Utilize the search bar to locate the employee.
- Select the related actions for Job Change, Transfer, Promote, or Change Job.
- Make the necessary modifications to the employee’s status.
Updating Workload and FTE
Updating workload and FTE in Workday is essential for maintaining accurate workforce data and resource allocation.
Users can modify an employee’s workload using the ‘Change Work Space’ or ‘Change My Work Space’ task in Workday. When employees’ workload is updated, their FTE value will be automatically adjusted.
In addition to individual employee updates, Workday also allows users to update FTE for multiple employees simultaneously. This feature is particularly useful for organizations that need to make large-scale adjustments to their workforce, such as during restructuring or mergers.
Best Practices for Managing FTE in Workday
For effective management of FTE in Workday, organizations should adhere to the following best practices:
- Frequent review and updates of employee data
- Compliance with labor laws and company policies
- Vigilant monitoring of FTE trends for necessary adjustments
By adhering to these best practices, organizations can optimize their workforce management and make data-driven decisions about staffing and resource allocation.
Regularly Review and Update Employee Data
Regularly reviewing and updating employee data in Workday ensures:
- Accurate FTE calculations
- Effective workforce planning
- Avoidance of errors and discrepancies that may impact FTE calculations and decision-making processes
- Identification of potential compliance issues and proactive resolution
To review and update employee data in Workday, users can follow these steps:
- Access their personal information in the system.
- Review the existing data for accuracy.
- Make any necessary updates or changes.
- Save the changes to ensure they are accurately reflected in the system.
Ensure Compliance with Labor Laws and Company Policies
Organizations using Workday should ensure compliance with labor laws and company policies when managing FTE. By adhering to labor laws, organizations can avoid potential legal issues and maintain a positive reputation in the market.
Compliance with company policies ensures that employees are treated fairly and consistently, promoting a positive work environment and employee satisfaction. Workday can assist in ensuring compliance with labor laws and company policies by providing a centralized system for managing employee data and tracking work hours.
This allows organizations across industries to:
- Accurately calculate FTE
- Monitor compliance with labor laws and company policies
- Generate reports and alerts to flag any discrepancies or potential violations in FTE calculations or employee classifications.
Monitor FTE Trends and Adjust as Needed
To adjust FTE based on identified trends, organizations can maintain hiring plans on target, build flexible workforce capacity models, and identify top staffing strategies. By making data-driven adjustments to FTE, organizations can optimize their workforce, improve productivity, and better align resources with business needs.
Monitoring FTE trends in Workday allows organizations to:
- Identify patterns
- Make necessary adjustments to optimize workforce management
- Analyze FTE data to gain valuable insights into resource allocation, workforce planning, and productivity levels
- Make informed decisions about staffing and resource allocation
Support Beyond Built-in Workday Services
While Workday’s built-in customer services provide on-demand support for issues like logging into your account, resetting your password, or completing surface-level tasks, Surety Systems goes further.
Our Workday consulting services transcend traditional support services, offering personalized guidance for all your most critical projects and ensuring your needs stay at the top of our priority list, no matter what.
With extensive knowledge of all areas of the Workday landscape, techno-functional expertise, and a proven track record of success, our senior-level Workday consultant team has what it takes to handle any project and help you maximize your overall investment.
For more information about our Workday consulting services, contact us today.
Frequently Asked Questions
What does FTE mean in the workplace?
FTE stands for Full-Time Equivalent, which measures the total number of employees working at an organization by summing up the hours of full-time, part-time, and other types of workers into ‘full-time’ units.
How many hours is 1 FTE?
A full-time equivalent (FTE) is the number of hours worked in a week divided by the employer’s hours for a full-time workweek, which is typically 40 hours. Therefore, 1 FTE equals 40 hours per week.
Is 0.8 FTE considered full-time?
At 0.8 FTE, an employee is working fewer hours than a full-time employee who works 40 hours per week, as an FTE of 80% would be equal to 32 hours. Therefore, 0.8 FTE is not considered full-time.
What does .75 FTE mean?
A .75 FTE employee works 75% of a full-time position, typically equating to 30 hours of work per week in a 40-hour week. This is also expressed as 0.75 FTE, meaning the employee has a regular (not temporary) budgeted assignment of 75% of a full-time position.
What does 50 FTE mean?
50 FTE refers to an individual working a 20-hour work week and is equivalent to half of a full-time employee (1.0 FTE) who works a 40-hour work week. Two part-time employees together equal one full-time employee equivalent (0.5 + 0.5).