Showing posts with label FTE. Show all posts
Showing posts with label FTE. Show all posts

Friday, September 12, 2014

FTE For Multiple Jobs in PoeopleSoft

We have already seen and discussed about the formula used to calculate the FTE and its elements in detail here - How the FTE is Calculated in PeopleSoft but the discussion we are going to have about FTE is certainly different than what we have already seen.
Its about how the FTE is calculated for the employees who hold more than one jobs in the organization. For example,  If an employee holds senior software position and in addition to that they work as technical trainer for few hours in the same organization then how the FTE will be calculated for them.

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Let's take an example, an employee has been hired as a full time Senior Software Engineer so conceptually the FTE should be 1 and in fact the same is reflecting in the job information shown below:



Fair enough..!  The employee now gets an additional assignment of Technical Trainer which requires 20 hours of their work and that means they will now have to spend 20 out of 40 full time hours in their first job which is Senior Software Engineer and remaining 20 hours in the second newly assigned job as a Technical Trainer. So let's add this additional assignment from Add Additional Assignment component (For details about how to add additional assignment visit - ). After providing all the field values when the Save button is clicked, It will certainly display below warning:
--------------------------------------------------------------------------------------------------------------
Warning -- Combined FTE of active jobs for employee AE45VK98 has exceeded 1.0. (1000,684)

The sum of FTEs of all active jobs (with employee status Active, Leave, Leave With Pay, Suspended or Short Work Break) for this employee has exceeded 1.0. 
--------------------------------------------------------------------------------------------------------------------------------------------------- 

I think most of you would be familiar with this warning message but do all of us know the significance of it?


Let's get to the bottom of this.  

In PeopleSoft, each assignment or job has its own FTE which tells how much percentage of full time hours an employee is working on the job and sum of all these FTEs should always be equal to 1 unless the employee is working overtime. In our case the employee has two jobs in the same organization - Senior Software Engineer and Technical Trainer and and both require 50 % of full time hence the total full time hours (40 hours) will be distributed accordingly.

 So, Ideally the FTE should be  0.5 + 0.5 = 1 but if you look at the employee's job information, the combined standard hours are 60 and hence the combined FTE is 1.5 which indicates employee is working overtime which is not correct. that's why the system throws the warning (Shown above) about exceeding combined FTE.



But why did it happen, why the FTE has exceeded 1?
Its because when another job is added the system adds the FTE  to the existing Job's to calculated the combined FTE. So in our case, the person was hired as Senior Software Engineer and the FTE for this job was 1. Then we added another assignment for this person for the role Technical Trainer and the FTE for this job was 0.5.
Therefore, system calculated combined FTE = 1 + 0.5 = 1.5

 What should we have done instead?
As already stated, when the person gets a new assignment as Technical Trainer then they are supposed to spend 50 % of full time or 20 hours in this and rest 50 % in the existing one (Senior Software Engineer) and the same should be replicated in the system. Hence, before adding a new assignment we should have first changed the Standard Hours to 20 for the first job (Senior Software Engineer) and then the new assignment should have been added again with Standard Hours as 20.

 So, before adding a new assignment, open the first job and change the Standard Hours value in Job Information tab to 20, and then add a new assignment with Standard hours value as 20. The combined FTE will now be 1 as shown below which is perfectly reflecting the hour distribution in both the jobs:





Note that the hours mentioned in this article are weekly hours and not the daily hours.
Full Time hours - 40 (Weekly)  FTE 1
50 % of Full Time - 20 (Weekly)  FTE 0.5

Please also see


Want to learn PeopleSoft Core HR module thoroughly? I have several videos with total duration of 12 hours.


Following is the link to the YouTube videos Core HR
Click here to see course contents

Click here to know how it works

However, if you want to save money by purchasing whole module instead of in parts then visit this page to get more details PeopleSoft Functional and technical online training
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Tuesday, August 26, 2014

How the FTE is Calculated in PeopleSoft

FTE (Full Time Equivalent) indicates how much percentage of the full-time an employee works for. For example, if the default full time Standard Hours is defined as 40 hours in a week (5 working days) and an employee works for 25 hours out of those 40 hours then it means they work for 62.5% of the full time and the FTE value for this would be 0.625. However, if the employee works for all 40 hours in a week then the FTE would have been 1 which indicates that employee is working full time.

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Before we go any further, I would like to bring up some of the past experiences where I have had seen people calculating FTE through dividing Standard Hours mentioned in Job page by the Default Std Hours mentioned in Installation Table page (Navigation: Main > Setup HRMS > Install > Installation Table) which is absolutely wrong.

So, lets look at the formula used for FTE calculation in Job Data page:

                              (Job Std Hours)            x (Annualization Factor of Job Std work Period)
FTE =          --------------------------------------------------------------------------------------------------------------
                      (Default Full Time Std Hours) x (Annualization Factor of Default Full Time Std Work Period)
In this equation, there are two sets of entities: 
Set 1 - Job Std Hours and Job Std Work Period
Set 2 - (Annualization Factor of) Default Full Time Std Hours and (Annualization Factor of) Default Full Time Std Work Period

 We must understand the entities Standard Hours, Standard Work Period and Annualization Factor of Standard Work Period in PeopleSoft.

Standard Hours in PeopleSoft

The number of hours an employee must work for in a particular period.

Standard Work Period in PeopleSoft

The work period in which an employee must complete the Standard Hours.

Annualization Factor in PeopleSoft

It's a number which tells how many times a particular frequency will occur in a year.
For example, the annualization factor for a Weekly frequency would be 52 because a week will occur 52 times in a year. Similarly, the annualization factor for a monthly frequency will be 12, for a semimonthly frequency it will be 24 so on and so forth.
We will understand what is the significance of Annualization Factor in FTE calculation as mentioned in the equation. Note that, the annualization factor for each frequency is defined in the Frequency Setup table (Navigation: Main > Setup HRMS > Foundation Table > Compensation Rules > Frequency Table > Frequency Table)

 Lets get back to our equation which we saw in the beginning: As per the equation, the Set 1 is divided by Set 2 which gives the FTE in Job Data page. When we say Set 1, we basically are referring to below fields in Job Data page:

If you have hired a person then you would have definitely noticed that these two fields Standard Hours and Work Period get auto filled and based on the values FTE is also auto calculated. But the real question is how do these two fields get auto filled ? where the values come from ?

There are different places from where the values for these two fields come based on the order of priority. When a person is hired through Add an Employment Instance page, system first looks into the Position Data page for the field values, provided a position is assigned to this person. If the field values are not mentioned over there then it looks into the Job Code page for the same, provided the Job Code is also assigned to this person. If the field values are not provided in Job Code page too then it looks into Sal Admin Plan page for the same, provided the Sal Admin Plan is assigned to this person. If the field values are not provided in either of these pages or if none of the three entities - Position, Job Code, Sal Plan is assigned to the Person then it finally looks into Installation table for the corresponding values and bring them into Job Data page.

 Well, this was all about Set 1 entities i.e Job Std Hours and Job Std Work Period but what about Set 2 entities ? What exactly are we referring to when we say Set 2 fields (Default Full Time Std Hours and Default Full Time Std Work Period) ?
This is nothing but the Default Full Time Standard Hours and Default Full Time Standard Work Period against which we are measuring the Job Std Hours and Job Std Work Period (Set 1 Entities) to determine whether employee is part time or full time. These fields i.e Default Full Time Standard Hours and Default Full Time Standard Work Period, are defined in Sal Admin Plan (Navigation: Main > Setup HRMS > Product Related > Compensation > Base Compensation > Salary Plan) page and Org Defaults by Permission List page (Navigation: Main > Setup HRMS > Product Related > Foundation Tables > Organization > Org Defaults by Permission List)



The page Sal Admin Plan gets the priority over Org Default by Permission list when system look out for the Default Full Time Stand Hours and Default Full Time Standard Work Period provided the Sal Admin Plan has been selected in the Job Data page. But if the Sal Admin Plan has not been selected in Job Data page then the page Org Default by Permission List becomes the ultimate source.

 By now, we have discussed everything which is there in the FTE equation except one - Annualization Factor. Its a fact that, and its evident from the equation too, the equation would give correct FTE value only when we use Annualization Factor of Job Std Work Period and Default Full Time Std Work Period. 
But the biggest question is, why do we need to use Annualization factor of these two fields in the first place ? 

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There might be a possibility where during a hire, the HR user gives the Job Std Work Period (Set 1 Entity) different than the Default Full Time Std Work Period (Set 2 Entity) and in that case by simply dividing Job Std Hours by Default Full Time Std Hours wouldn't yield correct results.
For example, the HR user have given Job Std Work Period as Biweekly, but the Default Full Time Std Work Period is defined as Weekly:

 Job Data Page (Set 1 Fields) :

  • Job Std Hours - 38.75
  • Job Std Work Period - Biweekly

 Salary Plan Page (Set 2 Fields) :

  • Default Full Time Std Hours - 38.75
  • Default Full Time Std Work Period - Weekly

If we don't consider annualization factor then FTE = 38.75/38.75 = 1 (Full time) which is wrong because In Both cases, though hours are same but the Company policy says that worker has to complete 38.75 hours in one week (Weekly) then only they will be considered as full time but in this example as per Job Data page the worker is completing 38.75 hours in Two weeks (Biweekly) hence he/she is not full time. And to get the correct FTE value we have to include annualization factor here. Lets now calculate the FTE by using the same equation we saw in the beginning.
For that we first need to get the annualization factor of both Work Periods (frequencies) and that can be found in Frequency table (Navigation: Main > Setup HRMS > Foundation Tables > Compensation Rules > Frequency Table)

The annualization factor for Weekly work period (Frequency) = 52
The annualization factor for Biweekly work period (Frequency) = 26
                              38.75   x 26
FTE =          -------------------------------  =  0.5 (Part Time) which is correct.
                              38.75   x 52


Exercise:

So far so good, now lets do an exercise to prove the functionality as to how the Set 1 and Set 2 fields are referred to calculate FTE value while hiring a person through Add an Employment Instance component.

 Lets see what values have been given for these two fields in Installation Table and Salary Plan page.

 Installation Table Page:


Salary Plan Page:


Lets hire an employee now. Do not provide values to any of the following fields for now - Position Number, Job Code, Salary Admin Plan and see what is the Standard Hours field value.

Let me quote my statement from an earlier paragraph:

  If the field values are not provided in either of these pages or if none of the three entities - Position, Job Code, Sal Plan is assigned to the Person then it finally looks into Installation table for the corresponding values and bring them into Job Data page.

 So as per this statement, the value for the field Standard Hours should come from Installation table i.e 37.50 hence my statement stands correct. If you notice, the FTE in this case is 0 because there is no 'Default Full time Std Hours' available so far since Sal Admin Plan is yet to be assigned.

 Now, Lets assign the Salary Admin Plan XYZ to this employee and see how the values change:


Now, let me again quote my statement from the same paragraph:

 system first looks into the Position Data page for the field values, provided a position is assigned to this person. If the field values are not mentioned over there then it looks into the Job Code page for the same, provided the Job Code is also assigned to this person in job page. If the field values are not provided in Job Code page too then it looks into Sal Admin Plan page for the same, provided the Sal Admin Plan is assigned to this person.

 As per this statement, the value for the field Standard Hours should come from Salary Plan i.e 40, hence my statement stands correct. 
In this case, the FTE is calculated as 1 because both the Job Std Hours and Default Full Time Std Hours along with Work Period in Job page and Salary Plan page respectively are same.
 


Please also see
Simplified Way to Provide a Page Access in PeopleSoft
PeopleSoft Set Control Field
Adding and Maintaining Person Of Interest in PeopleSoft
Hiring a Person in PeopleSoft
Part Time/Full Time, Regular/Temporary and Contingent Workers in PeopleSoft
Understanding Component Interface in PeopleSoft
How to find the List of Users Assigned to a Role
FTE For Multiple Jobs in PoeopleSoft
How to Resolve a Row Level Security Issue in PeopleSoft
Part Time/Full Time, Regular/Temporary and Contingent Workers in PeopleSoft
'Override Position Data' and 'Use Position Data' Option in Job Data Page


Want to learn PeopleSoft Core HR module thoroughly? I have several videos with total duration of 12 hours.


Following is the link to the YouTube videos Core HR
Click here to see course contents

Click here to know how it works

However, if you want to save money by purchasing whole module instead of in parts then visit this page to get more details PeopleSoft Functional and technical online training
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