What role does record-keeping play in calculating FTEs?

The role of record-keeping in calculating Full-Time Equivalents (FTEs) is crucial because it enables organizations to accurately track employee hours. Maintaining detailed records of when employees work—including start and end times, hours worked each week, and any overtime—is essential for determining how many FTEs a company has.

Accurate tracking of hours ensures that part-time and full-time employees are properly accounted for in terms of their contributions to the overall workforce. For example, using this data, an organization can convert the total hours worked by part-time employees into FTEs by dividing the total hours by the hours that represent a full-time schedule (typically 40 hours per week). This process allows for clear understanding and management of labor resources within the organization, ultimately aiding in planning and budgeting.

While the other options touch on important aspects of employment management, they do not directly influence the calculation of FTEs as record-keeping of employee hours does.