FTE Employee
Catalog row in Vendor License Metrics · Cited
- Unit
- FTE Employee
- Aliases
- FTE; FTE-E; Full-Time Equivalent; per employee
- Definition
- FTE Employee Calculation: "Unless otherwise specified in an Order Form, a Customer’s FTE Employee Volume Metric is calculated by multiplying the number of workers in each category (full-time, part-time, temporary, volunteers etc.) by the applicable percentage rate specified for each category, and then adding the resulting numbers for each category of worker together for a total sum." A Full-Time Equivalent is a worker (employee or contractor) regularly scheduled for more than 24 hours per week.
- Counting rules
- Count every worker, employee or contractor, by category: Full-Time Equivalent (regularly scheduled for more than 24 hours a week), Part-Time Equivalent (24 hours or less), Temporary (hired for less than 4 months in a year) and Volunteer (non-paid, less than 2 months or at most 4 hours a week). Multiply each category by its percentage rate and add the results; the policy worked example (an image in the PDF) uses 100% full-time, 75% part-time, 50% temporary and 10% volunteers, counting workers per type for the coming 12 months (1,000 FT + 200 PT + 200 temporary = 1,250 FTE). Payment method, actual hours worked and benefit eligibility are irrelevant. The customer must evidence that a worker belongs in a lower category; otherwise all workers count as Full-Time Equivalents. An Order Form may set a different calculation.
- Floors / minimums
- No minimum published. Under the General Terms of Business the purchased quantity cannot be reduced during the Minimum Term or a Renewal Term (s.10.8).
- Applies to products
- Unit4 ERPx
- Unit4 Talent Management
- Unit4 Source-to-Contract
- Product category