FTE resource planning is how many professional services firms like to measure and manage capacity. It’s a sophisticated approach that considers multiple factors like different working patterns, regional variations, and project-specific requirements.
One FTE typically represents a full-time employee's working hours, but modern professional services firms need to track this across varied scenarios: partial allocations, multiple time zones, different project types, and flexible working patterns.
This guide shows you how to implement effective FTE resource planning in a professional services environment, using modern tools to handle the complexity automatically.
Understanding FTE fundamentals in professional services
Success in professional services hinges on allocating the right resources at the right time. But when your teams work across different countries, projects, and working patterns, tracking Full-Time Equivalent (FTE) can be tricky.
Standard FTE calculations that work in other industries simply don't cut it for professional services. Your teams might span multiple countries, each with different standard working hours. You're likely managing various project types, from full-scale client implementations to pro-bono work. And each project comes with its own unique resource requirements and working patterns.
You need to account for:
🚩Different standard working hours across countries
🚩Varied project requirements (like pro-bono work)
🚩Multiple resource diaries and working patterns
🚩Complex booking scenarios
To put this into practice, let’s look at the different FTE measurements.
Core FTE measurements that drive success
In essence, there are typically three critical FTE measurements, here’s what they are and how they work in practice:
#1. FTE assigned
This measures the actual time a resource is allocated to work against your reference diary. For example, if Sarah works 20 hours on a project that has a 40-hour reference diary, her FTE Assigned would be 0.5.
#2. FTE in range
This shows your planned resource allocation within specific date ranges. It's particularly useful when you need to check resource availability for new projects, monitor utilisation in real-time, and adjust allocations based on project demands.
#3. FTE Total
This captures the complete resource commitment from project start to finish. You'll use this to plan long-term resource needs, track overall project resourcing, and make strategic staffing decisions.
Reference diaries: the foundation of accurate FTE
At the heart of accurate FTE calculation lies the reference diary. Think of it as your baseline for measuring resource allocation across different working patterns and regions. When your UK team works 37.5 hours while your US team works 40, reference diaries ensure you're making valid comparisons.
They do more than just handle different working hours. Reference diaries help you manage contingency time effectively and adapt to specific project requirements. This flexibility proves especially valuable when dealing with non-standard work patterns.
Handling complex scenarios
Professional services work rarely fits into a neat, standard pattern. Some projects might require reduced hours, like pro-bono work for charitable organisations. Others span multiple time zones, demanding careful coordination of resources. Part-time allocations add another layer of complexity.
Your FTE calculations need to account for all these variables while maintaining accuracy. Modern resource planning tools make this possible by automatically adjusting calculations based on your reference diaries and project requirements.
Turning FTE data into action
When you have accurate FTE data at your fingertips, you can transform how you manage resources. Resource bottlenecks become visible before they impact projects. Team workloads stay balanced, preventing burnout while maintaining productivity. Perhaps most importantly, you can plan future capacity with confidence, knowing your calculations reflect the real world of professional services delivery.
The business case for FTE-based resource planning
Every professional services firm wants to maximise billable hours while keeping their teams engaged and projects on track. Yet many still rely on basic spreadsheets or outdated tools to manage their most valuable asset—their people's time.
The trouble is, when resource planning goes wrong, the impact ripples through your entire organisation. Projects start falling behind because key team members are overbooked. Others sit underutilised, affecting both motivation and profitability. Client deadlines get missed, and your reputation takes a hit.
FTE-based resource planning changes this picture entirely. By understanding exactly how your teams' time is allocated, you can make confident decisions about project staffing and future capacity. Reference diaries provide the foundation, ensuring your resource calculations stay accurate across different working patterns and regions.
Here’s a handful of the ways FTE resource planning helps:
#1. Drive project profitability
Consider how accurate FTE planning affects your bottom line. When you can see exactly how time is allocated against your reference diaries, you spot potential issues before they affect project delivery. You'll know immediately if a project is using more resources than planned, or if there's capacity available for additional work.
For example, if your standard project needs 1.5 FTE but you've only assigned 1.2, you can address this shortfall before it impacts delivery. This level of insight helps maintain project profitability while ensuring quality doesn't suffer.
#2. Support strategic growth
Beyond day-to-day project management, FTE planning gives you the data needed for strategic decisions. You can forecast resource needs accurately, whether you're planning expansion into new regions or considering new service lines. The ability to track FTE in Range shows you exactly where capacity exists and where you might need additional resources.
#3. Improving team wellbeing
Resource planning isn't just about numbers - it directly affects your people's work experience. With proper FTE planning, you can maintain balanced workloads across teams. The system accounts for different working patterns, making it easier to accommodate flexible working while ensuring project needs are met.
#4. Make better hiring decisions
When should you hire? What skills do you need most? FTE Total calculations help answer these questions with confidence. You can see exactly where resource gaps exist and make data-driven decisions about growing your team.
#5. Enhance client relationships
Clients notice when projects run smoothly. With accurate FTE planning, you can confidently commit to deadlines knowing your resource calculations reflect reality. You can also demonstrate professional project management, showing exactly how resources are allocated to deliver value.
Side note: Modern resource planning tools make all this possible by automating complex calculations and providing real-time visibility. They handle the intricacies of different working patterns, regional variations, and project types that manual systems struggle with.
How to set up your FTE framework in 6 steps
Professional services firms need a robust FTE framework that flexes with their business needs. That's where intelligent resource planning solutions like Retain make a real difference in everyday operations.
Step 1: Start with reference diaries
Setting up your FTE framework begins with establishing reference diaries. These act as the foundation for all your resource calculations. Retain's Job Reference Diary feature handles this elegantly. You can create specific diaries for different types of work, from full-time client projects to pro-bono initiatives that might only require five hours per week. The system then automatically calculates FTE based on these parameters, saving hours of manual calculations.
Step 2: Create job-specific reference diaries
Every project has its own rhythm. Retain recognises this by allowing you to set specific FTE reference diaries for individual jobs. Unlike basic systems that force all projects to follow a standard company diary, Retain lets you tailor FTE calculations to each project's unique requirements.
For instance, an agile development project might need a different working pattern from a standard audit engagement. With job-specific reference diaries, you can set distinct FTE calculations for each. The system automatically adjusts Booking FTE assigned and Job FTEs based on the specific diary you've chosen. This flexibility ensures your resource calculations always reflect the real working patterns of each project.
Step 3: Manage regional variations
Professional services often means global delivery. Your London team might work 37.5 hours while your Singapore office runs on different schedules entirely. Retain solves this complexity by allowing different standard working hours for teams across countries. All FTE calculations adjust automatically, giving you accurate resource measurement regardless of location.
Step 4: Make FTE work for different project types
Not every project fits the same mould. A major client implementation might need multiple full-time resources, while an advisory project could require just a fraction of someone's time. Retain's flexible booking system lets you allocate resources precisely, tracking both FTE Assigned and FTE Total to ensure you're using your team effectively.
Step 5: Build in contingency
Things rarely go exactly to plan in professional services. Retain accounts for this reality by including contingency time in your resource planning. You can mark specific time periods as contingency, and the system factors these into your FTE calculations automatically.
Here's where the real power of proper FTE planning shows. When you need to staff a new project, you can instantly see:
▪️Which team members have capacity (using FTE in Range)
▪️How resource allocation affects ongoing projects
▪️Whether you need additional resources to deliver effectively
Retain displays this information in clear, actionable formats. Resource managers can make quick, informed decisions about allocation without wrestling with complex spreadsheets.
Step 6: Monitor and adjust
As projects progress, you'll need to adjust resource allocation. Perhaps a phase is taking longer than expected, or you need to bring in additional expertise. Retain's dynamic FTE tracking lets you see the impact of these changes immediately. You can move resources between projects while maintaining accurate FTE measurements across your portfolio.
The key is having a system that makes complex resource planning feel straightforward. By automating the technical aspects of FTE calculation, Retain lets you focus on what matters - delivering outstanding work for your clients while keeping your teams productively engaged.
FTE resource planning for different project types
Managing resources across varied project types presents unique challenges in professional services. Each project demands its own approach to resource allocation and tracking. Let's explore how to handle these different scenarios effectively using a tool like Retain.
Fixed-term project planning
Major transformation projects or audits typically need dedicated resources for set periods. These projects seem straightforward—you might think it's just about allocating 1.0 FTE for each team member. Yet the reality is more complex.
Using a tool like Retain, you can account for the true working patterns these projects demand. Perhaps your audit team needs to work extended hours during quarter-end. Or maybe your transformation project includes both on-site and remote working patterns. The system adjusts FTE calculations automatically, ensuring your resource planning stays accurate.
Rolling engagements
Retainer-based work or ongoing advisory services present different challenges. These projects often need fractional resource allocation over extended periods. A client might need 0.2 FTE of technical expertise and 0.4 FTE of advisory support each month.
Retain handles these fluid requirements seamlessly. You can set up recurring bookings with specific FTE allocations, then adjust them as needs change. The system maintains accurate FTE tracking even when resources split their time across multiple rolling engagements.
Pro bono and special projects
Pro bono work often follows different rules. You might allocate just five hours per week to a charitable project, regardless of your standard working patterns. Retain's flexible job reference diary feature lets you create specific FTE calculations for these special cases. This means you can track pro bono work accurately without disrupting your standard resource measurements.
Multi-region project delivery
Global projects bring added complexity. When your team spans multiple time zones and working patterns, standard FTE calculations fall short. Retain accounts for different regional working hours automatically. A 1.0 FTE allocation adjusts naturally whether it's for your London team working 37.5 hours or your Singapore team on different schedules.
Hybrid team structures
Modern projects often combine permanent staff, contractors, and part-time specialists. Each might work to different patterns or have specific availability constraints. Retain's sophisticated FTE tracking handles this diversity effectively. The system maintains accurate resource calculations regardless of working patterns or employment status.
Managing project changes
Projects rarely stay static. Scope changes, timeline shifts, and changing client needs all impact resource requirements. Retain's dynamic FTE tracking updates automatically when you adjust bookings or reallocate resources. This means your resource picture stays accurate even as projects evolve.
The key to successful FTE planning lies in having a system flexible enough to handle these varied project types while maintaining consistent, accurate resource measurement. This lets you focus on delivering value rather than managing complex calculations.
Real-time FTE management: moving beyond spreadsheets
Gone are the days of manually updating spreadsheets to check resource capacity. Retain's real-time dashboard shows you exactly where your resources stand right now. Need to know if your tax team has capacity for an urgent client request? A quick glance shows you available FTE across any time period.
When a project starts demanding more resources than planned, you need to know immediately. Retain's FTE tracking highlights potential issues automatically. If a 1.5 FTE project starts trending towards 2.0, you'll see it happening. This early warning system lets you adjust resources before project delivery suffers.
Sometimes you need to move resources between projects. Retain shows you the ripple effects of these changes instantly. Moving a senior consultant from one project to another? The system recalculates FTE impact across both projects immediately, helping you make informed decisions about resource allocation.
Global delivery also brings unique challenges. Retain handles different working patterns and time zones automatically. Whether you're allocating resources in London, New York, or Singapore, the system maintains accurate FTE calculations. No more manual adjustments or complex conversion calculations.
Professional services resource management is inherently complex. But managing it doesn't have to be. Retain handles the technical calculations and updates automatically, letting you focus on strategic decisions that drive business growth.
With over 30 years of experience in professional services resource planning, Retain understands the challenges you face. Our solution transforms resource management from a daily challenge into a strategic advantage.
The difference lies in having a system that truly understands professional services work. One that makes complex resource management feel effortless while providing the insights you need to grow your business.
Transform resource planning from a challenge to a competitive advantage
Resource planning shouldn't hold your business back. Having the right tools and approach to FTE management can be the difference between struggling with delivery and driving profitable growth.
Retain's approach transforms how you manage resources. By automating complex FTE calculations and providing real-time visibility across your entire resource pool, you can:
✅Make confident decisions about resource allocation
✅Prevent project delays before they happen
✅Keep teams productively engaged
✅Drive higher project profitability
Take the next step
Ready to transform your resource planning? Retain offers a personalised approach to implementation, ensuring you get maximum value from day one.
Book a demo today and see how Retain can help you:
- Get instant visibility of your resource capacity
- Make better staffing decisions
- Keep projects on track
- Drive higher profitability
Proven in practice
Leading firms are already seeing the benefits of sophisticated FTE planning. Take Mazars Qatar, who eliminated the need for costly external resources by gaining instant visibility of their consultants' capacity. Or Fruitman Kates, who transformed their resource management in just three weeks, leading to faster project starts and better skill matching. These firms moved from reactive to proactive resource planning, giving them a competitive edge in delivery.
