Defining Standard Hours & FTE in PeopleSoft HCM

Defining Standard Hours and the Standard Work Period:

When converting hourly compensation rates, the frequency conversion calculations use The Job Standard Hours and the Standard Work Period.

Job Standard Hours define how many hours the employee should work in the job. The Standard Work Period defines the work period in which the standard hours should be completed.

You define the standard work period by selecting a frequencyID (and its annualization factor) from the Frequency Table.

You define the standard hours and the standard work period on the following pages:

·         Job Information page of the Hire component ( define values for an employee).

·         Job Code Profile page of the Job Code component (define values for a job code).

·         Basic Eligibility section of the Job Requisition Data > Screening Criteria page ( define values for an employment application, this is part of Recruiting Solutions).

·         Salary Plan Table page (define values for a salary plan).

·         Job Information page of the Position Data component  (define values for a position).

·         Settings page of the Primary Permission List Preferences component (define values as defaults for a Primary Permission List).

·         HRMS Options page of the Installation component (define default values for a Company).

·         HR Defaults page of the Business Unit HR Defaults component (define values as defaults for PeopleSoft Human Resources).

Defaults for Standard Hours and Standard Work Period:

The system inserts the standard hours and the standard work period as default information only if both are defined. The source of defaults in the Job record occur  under the specified conditions:

·         Job Code Profile page of the Job Code component, if you assigned the worker a job code.

·         Salary Plan Table page, if you assigned the worker to a position.

·         Settings page of the Primary Permission List Preferences component for the user ID.

·         Products page of the Installation component (if you didn't indicate standard hours on the Job Code Table), Salary Plan Table, or Primary Permission List Preferences Table.

Defining Full-Time Equivalency

Full-time equivalency (FTE) is the percentage of full time that an employee should normally work in a job. In calculating the FTE, the system uses your definition of the standard hours and the standard work period.

If you select Apply FTE for a compensation component, PeopleSoft Human Resources uses the standard hours and the standard work period to compute FTE to prorate holiday hours and pay for part-time and hourly employees.

PeopleSoft Human Resources calculate FTE using the following equation:

(Job Std Hrs) * (Annualization Factor of Job Std Work Period)
divided by
(Default Full Time Std Hrs) * (Annualization Factor of Default Full Time Std Work Period)

Where the default full-time Standard Hours and default full-time Standard Work Period are from:

·         The Salary Plan Table (if a salary plan is defined for the employee, and if both standard hours and standard work period are defined for this salary plan)

·         The Primary Permission List Preferences Table (if no salary plan is defined for the employee, and if both standard hours and standard work period are defined in the Primary Permission List Preferences Table)