Effective resource planning requires precise information on key metrics, such as workforce availability, schedules, and utilization. Therefore, organizations need a standardized procedure like FTE (Full-time equivalent) or work hours to track and measure these parameters.
FTE and hours-based resource models cater to different types of industries and projects. While FTE is appropriate for long-term projects, the hours model is well-suited for short-term projects. In addition, the success of resource planning and forecasting depends on choosing the right metric for calculating employee hours.