Why would a small business want to monitor its FTE employee count?

Monitoring the Full-Time Equivalent (FTE) employee count is crucial for a small business primarily to qualify for specific benefits or programs. Many government programs, tax incentives, and benefits, such as health insurance subsidies, are contingent upon the size of a business, often defined in terms of FTEs. By keeping track of the FTE count, a business can ensure that it meets the requirements to access these advantages, which can significantly impact its financial health and support its growth.

This practice also provides insight into workforce management and better strategic planning, allowing businesses to make informed decisions about hiring and resource allocation.