Which of the following factors can influence a business’s FTE count?

Employee turnover rates are a significant factor that can influence a business’s full-time equivalent (FTE) count because they directly impact workforce stability and staffing levels. High turnover rates may lead to a decreased FTE count as positions may remain unfilled for periods of time while new hires are sought. Additionally, when employees leave, the business must recruit and train replacements, which can disrupt normal operational capacity and affect the overall FTE figures.

In contrast, the other factors listed, while they can impact various aspects of business operations, do not have a direct correlation with the count of full-time equivalents. For instance, business location may affect market access or costs but does not inherently change how many full-time employees a business has. Marketing strategies can drive business growth and may influence hiring, but they do not affect FTE count directly. Lastly, inventory levels might indicate supply chain management efficiencies or inefficiencies, yet they do not influence how many full-time employees are designated under the FTE metric. This highlights why employee turnover rates are the most relevant factor in determining the FTE count.