5.6: Staffing Costs and Full-Time Equivalents (FTE)
- Page ID
- 57390
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)Staffing costs make up the largest portion of an early childhood program’s budget. Salaries and wages for educators and support staff often account for the majority of expenses, and this includes both full-time and part-time employees. Positions may include teachers, aides, cooks, custodial staff, substitutes, and administrative personnel. In addition to wages, staffing costs also include employee benefits such as healthcare, retirement contributions, and paid time off.
This is an important consideration when owning and operating a program. Staffing costs will vary depending on the type of program, geographic location, and the qualifications and experience of educators. Programs that prioritize highly qualified staff or offer competitive wages and benefits will have higher personnel costs, but these investments are directly tied to program quality.
Early childhood programs face unique challenges when it comes to staffing. Unlike elementary school settings where a teacher may work 6–7 hours per day with a larger group of children, early childhood programs often operate 8–12 hours per day. Because of this, programs must schedule overlapping staff shifts to maintain required ratios throughout the day. This results in higher staffing costs, even though individual employees may only work 8-hour shifts.
Understanding full-time equivalents (FTE) helps administrators calculate staffing needs. An FTE represents the number of full-time staff required to meet operational needs. For example, two part-time employees working 20 hours each would equal one full-time equivalent.
Example: Play-Based Program by Classroom
| Classroom Type | # of Classrooms | Children per Classroom | Ratio | Staff per Classroom | Total Staff Needed (at one time) |
|---|---|---|---|---|---|
| Infant | 2 | 6 | 1:4 | 2 | 4 |
| Toddler | 3 | 8 | 1:6 | 2 | 6 |
| Preschool | 3 | 18 | 1:12 | 2 | 6 |
Total Enrollment and Staffing
- Total children served:
(2×6) + (3×8) + (3×18) = 90 children - Minimum staff needed at one time:
16 staff
Because programs operate longer than an 8-hour shift, additional staff are needed for coverage (opening, closing, breaks, planning time):
Realistic staffing: 20-22 employees
Tiered Wage Structure Example
Programs often use a tiered pay model:
- Lead teacher / specialist: $20/hour
- Aide / assistant: $16/hour
Each classroom includes:
- 1 lead teacher
- 1 aide
Annual Salary per Classroom
- Lead: $20 × 2,080 = $41,600
- Aide: $16 × 2,080 = $33,280
Total per classroom:
- $74,880
Total for 8 classrooms:
- $74,880 × 8 = $599,040
Add coverage staff (~25%):
- $599,040 × 1.25 = $748,800
Add benefits (~20%):
- $748,800 × 1.20 = &898, 560 total staffing cost
Revenue Needed by Age Group (Full-Time)
Because infant and toddler care require more staffing, they cost more than preschool care. Below is an example of how costs may be distributed:
| Age Group | Monthly Cost | Weekly Cost | Daily Cost |
|---|---|---|---|
| Infants | $1,200 | $277 | $55 |
| Toddlers | $950 | $219 | $44 |
| Preschool | $700 | $162 | $32 |
Part-Time Care Example (3 Days/Week)
Part-time care is often priced at about 70% of full-time tuition:
| Age Group | Monthly Cost | Weekly Cost | Daily Cost |
|---|---|---|---|
| Infants | $840 | $194 | $65 |
| Toddlers | $665 | $153 | $51 |
| Preschool | $490 | $113 | $38 |
Part-time daily rates are higher because the program still maintains staffing and reserves space for the child.
Important Considerations
This example focuses on staffing costs only. Programs must also budget for facilities, utilities, supplies, food, insurance, and administrative costs.
This example highlights why early childhood programs are financially complex. Due to required ratios, longer hours of operation, and staffing overlap, labor costs are significantly higher than in many K–12 settings.
The administrator plays a critical role in balancing:
- high-quality care for children
- fair and equitable wages and benefits for educators
- financial sustainability of the program