improve this "Utilizing these essential information at hand, we can compute the total annual hours for each staff member, facilitating the determination of Full-Time Equivalents (FTE) by dividing the total annual hours worked by each staff by 1 FTE, which is equivalent to 2080 hours. With these calculation, it can help determine number of nursing staff required to meet patient care needs using ADC, and community standards for nurse-to-patient ratios. FTEs are directly related to labor costs as they represent the total hours worked by full-time staff. Using this, we can determine the hourly wages for each staff by dividing the annual salary by 2080hrs/FTE as well as multiplying FTEs by the annual hours per FTE and the hourly wage gives an estimate of the labor cost for each position, aiding in budget allocation. FTEs provide a basis for planning the nursing budget by computing wages related to salaries, education, orientation, PTO, and agency staffing