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How do I manage full time equivalence (FTE)?

Available for the following plans: Employment Lite, Employment Plus, Employment Unlimited
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.

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 Employees List.
  4. Click on Add Employee.
    screenshot of where to click on the add employee button in people
  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
    • Tick check box if the employee is a company director
    • Probation length
    • Primary manager (optional)
    • Secondary manager (optional).
  8. Click Continue.
    screenshot of where to click on the continue button in the new employee file
  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.
    screenshot of where to enter the effective pay rate in the new employee file

    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. Enter the following:
    • Ordinary work day (add in number of hours)
    • Pay category (optional)
    • Pay schedule (optional)
    • Cost centre (optional)
    • Additional cost centres (optional)
    • Apprentice (optional)
    • NMW/NLW Eligibility (optional).
  15. If you wish to add benefits, click on the Add Benefit button.
  16. Choose whether you want to synchronise with payroll by clicking the Synchronise with Payroll tick box.
  17. In the next section ‌under Pension Settings, choose which pension type the employee will receive from the drop-down menu.
  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 Employees List.
  4. Click on the employee whose FTE status you wish to change.
  5. Click on Pay Details.
    screenshot of where to click on pay details in the employee file
  6. Click on Actions.
    screenshot of where to click on actions in the employee file
  7. Click on Edit.
    screenshot of where to click on edit in the employee file
  8. Under Pay Rates, select the Salary option.
    screenshot of where to click on salary under pay rates options
  9. Enter the new pay rate and FTE details.
    screenshot of where to enter the new pay rate details in the employee file
  10. Enter the following:
    • Pay category
    • Pay schedule
    • NMW/NLW Eligibility
    • Apprentice
    • Reason for change
    • Notes (optional).
  11. Click Submit.
    screenshot of where to click submit the new pay rate details in the employee file

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 Employees List.
  4. Click on the employee whose FTE status you wish to change.
  5. Click on Pay Details.
    screenshot of where to click on pay details in the employee file
  6. Click on Actions.
    screenshot of where to click on actions in the employee file
  7. Click on Edit.
    screenshot of where to click on edit in the employee file
  8. Select Hourly Pay.
    screenshot of where to select hourly pay

    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.

  9. Enter the following:
    • Pay category
    • Pay schedule
    • NMW/NLW Eligibility
    • Apprentice
    • Reason for change
    • Notes (optional).
  10. Click Submit.
    screenshot of where to click submit the new pay rate details in the employee file
  11. Click on the Work Hours tab.
    screenshot of where to click on work hours tab
  12. Add the following:
    • Employee work hours
    • Actual weekly hours
    • Full-time equivalent weekly hours (optional)
    • FTE Value
    • Ordinary work day
      screenshot of where to add the FTE details for hourly rate employees
  13. Click Save.
    screenshot of where to click save for hourly rate employees
Adding custom work hours
  1. Log in to Employment Hero.
  2. In the left-hand side menu, click on People.
  3. Click on Employee List.
  4. Click on the employee whose custom work hours you wish to set up.
  5. Click on Pay Details.
    screenshot of where to click pay details in the employee file
  6. Click on the Work Hours tab.
    screenshot of where to click pay details in the employee file
  7. Click on the Custom Work Hours button.
    screenshot of where to click on custom work hours in the employee file
  8. Enter the custom work hours in the week column, adding the number of hours worked each day.
    screenshot of where to enter the custom work hours in the employee file
  9. Click Save.
    screenshot of where to save the custom work hours in the employee file
  10. 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.
    screenshot of where to save the custom work hours in the employee file
For zero-hour based employees
  1. Log in to Employment Hero.
  2. In the left-hand side menu, click on People.
  3. Click on Employees List.
  4. Click on the employee whose FTE status you wish to change.
  5. Click on Pay Details.
    screenshot of where to click on pay details in the employee file
  6. Click on Actions.
    screenshot of where to click on actions in the employee file
  7. Click on Edit.
    screenshot of where to click on edit in the employee file
  8. Under Pay Rates, select the Salary option.
    screenshot of where to click on salary under pay rates options
  9. If the employee is zero-hours based, tick the Zero-based hours employee box.
    tick the zero hour based employee tick box
  10. Enter the effective pay rate and FTE details.
    screenshot of where to enter the new pay rate details in the employee file
  11. Enter the following:
    • Pay category
    • Pay schedule
    • NMW/NLW Eligibility
    • Apprentice
    • Reason for change
    • Notes (optional).
  12. Click Save.
    add the pay details then click save

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