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How do I manage full time equivalence (FTE)?

Updated

Available for the following HR plans: Standard, Premium, Platinum
Available for the following user access levels: Manager, Admin

Setting up full-time equivalence (FTE) for your employees is easily managed in the new or existing employee file. Employment Hero will automatically calculate your part-time employee's FTE and pro-rata salary with your input pay and work hours details.

Important

If you are using an Award or Industrial Instrument, then you cannot use the FTE feature.

Getting started

Add a new employee
  1. Log in to Employment Hero.
  2. In the left-hand side menu, click on People.
  3. Click on People list.
  4. Click on Add Employee.
    Add employee.jpg
  5. Click on Onboard.
    screenshot of where to click on onboard to add a new employee
  6. In the Basic Information screen, add the new employee's name and email address.
  7. In the Employment Details screen, add the following details:
    • Employing entity
    • Location
    • Employee code (optional)
    • Employment type - select part-time here
    • Start date
    • Job title
    • Industry standard job title
    • Probation length
    • Primary manager (optional)
    • Secondary manager (optional).
  8. Click Continue.

    click on the continue button
  9. In the Pay Details screen, choose between Salary or Hourly Pay. 
  10. Enter the full-time equivalent salary in the Pay Rate (100%) field. Do not worry, this will not be the salary used but is there to help you accurately calculate the pro-rata salary.

  11. Then, enter the following:

    • Actual weekly hours (the amount that the employee will work in a week as a part-time employee)
    • Full-time equivalent weekly hours (the amount that the employee would work if they were a full-time employee)

    Once these are input, the Effective Pay Rate is automatically calculated with a pro-rata salary based on the data provided. Any value that is in this field will be saved as the employee's salary. If you wish to use a different value, simply input the desired salary in this input and the calculator will correct the Pay Rate 100% field.

    Helpful Hint

    You have the option to enter the units as days, fortnight, month, or per annum.

  12. Enter the Effective Pay Rate.
    enter the effective pay rate

    Helpful Hint

    The effective pay rate will be the salary amount used across the platform.

  13. Select whether the Employee is paid irregularly or Pay employee their normal working hours by default.
  14. In the next section ‌under Superannuation Settings, choose the superannuation percentage that you are paying the employee.
  15. Enter the following:
    • Ordinary work day (add in number of hours)
    • Pay category (optional)
    • Pay schedule (optional)
    • Cost centre (optional)
    • Additional cost centres (optional).
  16. If you wish to add benefits, click on the Add Benefit button.
  17. Choose whether you want to synchronise with payroll by clicking the Synchronise with Payroll tick box.
  18. In the next section under Leave Details, select which leave types the employee is eligible for.
  19. Click on Finish (if you wish to exit the employee's profile) or Issue Contract (if you wish to send the contract to the employee at this stage).
Change an employee's FTE status

If the employee is set to salary pay rate

  1. Log in to Employment Hero.
  2. In the left-hand side menu, click on People.
  3. Click on People list.
  4. Click on the employee whose FTE status you wish to change.
  5. Click on Pay Details.
    click on pay details in the employee file
  6. Click on the three horizontal dots.
    Click on 3 dots to update FTE
  7. Click on Edit.
    click on edit to update full time equivalence
  8. Under Pay Rates, select the Salary option.
    click on salary radio button
  9. Enter the new pay rate and FTE details.
    Enter new pay rate and FTE
  10. Enter the following:
    • Pay category
    • Pay schedule
    • Reason for change
    • Comments (optional).
  11. Click Save.
    to save fte, click on save button.png
    to save fte, click on save button

If the employee is set to hourly pay rate

  1. Log in to Employment Hero.
  2. In the left-hand side menu, click on People.
  3. Click on People list.
  4. Click on the employee whose FTE status you wish to change.
  5. Click on Pay Details.
    click on pay details in the employee file
  6. Click on the three horizontal dots.
    Click on 3 dots to update FTE
  7. Click on Edit.
    click on edit to update full time equivalence
  8. Click the Hourly Pay button.
    click on the hourly pay radio button

  9. Add the Hourly Rate.
    FTE hourly pay add the hourly rate in

    Important

    If the employee is set to Hourly Rate, then the FTE-related fields are moved into the Work Hours tab within pay details. This is because ‌FTE does not impact the pay of hourly-rate employees.

  10. Enter the following:
    • Pay category
    • Leave allowance template
    • Pay schedule
    • Reason for change
    • Comments (optional).
  11. Click Save. hourly pay click on save at the bottom right of the screen.png
  12. Back on the employee file, click on the pen icon in the Work Hours section.
    Click on the pen icon in work hours.png
  13. Click on Standard Daily Hours. 
  14. Add the following:
    • Actual weekly hours
    • Full-time equivalent weekly hours (optional)
    • FTE Value
    • Ordinary work day
  15. Click Save. employee work hours click on save - standard daily hours.png
     
Adding custom work hours
  1. Log in to Employment Hero.
  2. In the left-hand side menu, click on People.
  3. Click on People list.
  4. Click on the employee whose custom work hours you wish to set up.
  5. Click on Pay Details.
    click on pay details in the employee file
  6. Click on the three horizontal dots.
    Click on 3 dots to update FTE
  7. Click on Edit.
    click on edit to update full time equivalence
  8. Click on the Custom Work Hours button.
  9. Enter the custom work hours in the week column, adding the number of hours worked each day.
    add custom work hours then click save.png
  10. Click Save.
  11. You will see a pop-up asking if you would like to change the employee's salary according to the calculated working out. Click on Yes, change salary to change the salary to reflect the FTE status of the employee; or No, do not change to retain the current salary with the edited work hours.
    Click on yes change history.png
For zero hour-based employees
  1. Log in to Employment Hero.
  2. In the left-hand side menu, click on People.
  3. Click on People list.
  4. Click on the employee whose FTE status you wish to change.
  5. Click on Pay Details.
    click on pay details in the employee file
  6. Click on the three horizontal dots.
    Click on 3 dots to update FTE
  7. Click on Edit.
    click on edit to update full time equivalence
  8. Under Pay Rates, select the Hourly Pay option.
  9. If the employee is zero-hours based, tick the Zero-based hours employee box.
    add the zero based employee by ticking the zero hour employee box
  10. Enter the effective pay rate details.
    add the new pay rate for the employee
  11. Add the following details:
    • Pay category
    • Leave allowance template
    • Pay schedule
    • Reason for change
    • Comments (optional).
  12. Click Save.
    zero-hour employee then click on save in the bottom right of the screen

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