How to calculate FTEs?
The manpower requirements are calculated by estimating workload volumes and FTE/driver ratios.
Workload Volumes * FTE Efficiency Ratios = Output (Required FTEs)
1. Workload Volumes
Workload volumes for each functional activity. For example, 4 feasibility studies per year.
2. FTE Efficiency Ratios
Number of FTEs required for a given activity. For example, 0.5 FTE per feasibility study.
3. Outputs
Required FTEs for each activity. For example, 2 employees required in a year (4*0.5 = 2 FTEs).
FTE Calculator
Activity 1
Required FTEs: 0
Total Required FTEs: 0
Three key design principles are considered in order to develop manpower requirements:
1. Lean Organization
Manpower requirements should be optimized ensuring the building of inhouse capabilities according to company needs and management & oversight of other outsourced functions continuously or on an as-needed basis.
2. Increasing Efficiency Factor
An Efficiency Factor is adopted to account for the increasing efficiency / productivity of manpower with time for repetitive tasks, allowing the same workload to be completed by less FTEs.
3. Organization Phasing
Manpower requirements for each function depends on the organization lifecycle stage of a given company.