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Human Capital Metrics Handbook

392 © Human Capital Management Institute

(Start of Period Employee FTE + End of PeriodEmployee FTE) / Number of Data Points

Intermediate

Calculated

Importance:

Level of Complexity: Measurement Type:

Sub Category:

Formula: Description:

Workforce Dimensions:

Metric Dimensions:

Most Common Uses:

Best Use:

Employee FTE

All Organization, Division or Business Unit,Workforce Category, Function, Critical Job Groups,Revenue / Non-Revenue-Generating Positions,Management / Non-Management, Executives,Performance Category, Productivity Quartile,Tenure Category, Age Category

The average full-time equivalent headcount (FTE)for a given period defined as the average of thestart of period and end of period total number ofemployees. A period can be defined as a day,week, month or year. The calculation is moreaccurate when counted on a more frequent basis.Typically, Average Employee FTE is calculated ona monthly basis; however, some organizationscalculate average headcount on a daily basis tooptimize accuracy.

NOTE: Data Point is defined as start of period andeach consecutive end of period.

"Lagging" - Average Employee FTE is most commonly used as a lagging measure of growth or reduction ofoverall FTE at an organization over time.

"Leading" - While not traditionally used as a predictive indicator, when analyzed by metric dimensionssuch as workforce category, critical job groups, business unit, performance category and tenure category,Average Employee FTE can help quantify population shifts and predict potential drivers of fluctuations inspecific segments of the employee population.

Headcount

Average Metric

Average Employee FTE