HR Metrics & Formulas
The numbers that measure your workforce: capacity, cost, and turnover.
FTE (Full-Time Equivalent)
FTE (full-time equivalent) is a unit that converts the hours worked by all employees into the number of full-time employees those hours represent. One FTE equals one person working a full schedule, usually 40 hours a week. A part-timer on 20 hours counts as 0.5 FTE. It lets you compare workload and cost across mixed teams.
Headcount
Headcount is the total number of individual people employed by an organisation at a specific point in time. Every person counts as one, whether they work full-time or part-time. Companies decide whether to include contractors, interns, and people on leave, and should state that rule in every report. Headcount is different from FTE, which measures work capacity in full-time units.
Salary Benchmarking
Salary benchmarking is the process of comparing the pay for your roles against market data for similar roles, at similar levels, in similar locations and industries. Companies use it to set salary ranges, make competitive offers, and check internal fairness. The output is usually a pay range per role and level, anchored to a target market percentile.
Span of Control
Span of control is the number of direct reports a manager is responsible for. A narrow span means few reports per manager and more layers in the organisation. A wide span means many reports per manager and a flatter structure. The right span depends on the type of work, team experience, and how much of the manager's time goes to their own individual work.
