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Shrinkage & FTE

Holiday, sickness, breaks, training and meetings are all real and all paid. Shrinkage is what they add up to, and FTE required is what that costs you in people.

FTE = productive hours ÷ (contracted hours × (1 − shrinkage))

Shrinkage components

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Result

9FTE required

8.56 before rounding up.

Total shrinkage
27%
Productive hours per FTE
116.8 hrs
Holiday
10%
Breaks
8%
Sickness
4%
Training
3%
Meetings and coaching
2%

Anything above 40% is usually a symptom rather than a fact — most often training or meetings that grew without anyone deciding they should.

Next step

Numbers are the easy half.

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