The overwhelming majority of small enterprise house owners and managers know what number of hours or days their crew members work every week. And in the event that they aren’t certain, all they need to do is take a fast look at their worker schedule to seek out out. 

However a shocking quantity don’t have a clue how these numbers stack up and, in the end, what number of hours and days crew members work on common over the course of a 12 months. And for those who’re not utilizing a small enterprise administration device like Homebase that takes care of those sorts of calculations and concerns for you routinely, you may not have any concept determine it out.

You’re in luck! We’ve put collectively this convenient information so that you’ll perceive.

Why understanding work hours and days issues for small companies

Determining your staff’ common annual work hours and days is greater than only a matter of curiosity — the outcomes can considerably affect your small enterprise operations. Listed here are only a few of the principle explanation why:

• Compliance with labor rules — It’s important to accurately perceive your crew members’ common work hours and days to adjust to related labor legal guidelines otherwise you danger audits, fines, and different disagreeable penalties. For instance, companies need to pay non-exempt staff 1.5x their regular hourly price for the time they work that exceeds 40 hours in a median week. As well as, crew members might have the precise to sure advantages like prolonged go away or well being protection in the event that they work greater than a sure variety of days or hours over the course of a 12 months. 

The excellent news is you need to use an SMB-friendly device like Homebase HR and compliance to assist hold you updated with these concerns and authorized rules.

• Permits for proactive hiring and recruitment — As a small enterprise proprietor, you probably already know what number of days your small business is open per week and what number of working hours you must cowl on common. So, precisely estimating your present crew’s common annual work hours or days may help you perceive whether or not you could have sufficient staff to cowl your labor wants or if you must begin hiring proactively. You actually don’t need to find yourself in a scenario the place you’re scrambling to discover a new employees member when your crew is already stressed and overworked. 

• Higher understanding of hourly charges and annual revenue — Understanding your staff’ common annual work hours and days provides you a greater image of their “hourly price” (even for those who pay them a wage) and/or how a lot cash they take house yearly. This ensures that you just’re paying folks a good wage and equips you with the knowledge you must enter wage conversations and negotiations from a well-informed viewpoint.

• Improved consciousness of crew members’ work-life stability — When you could have a exact image of the variety of hours or days crew members work per 12 months, you’ll be able to see how a lot of their time they spend at work vs. with their household and mates, pursuing their hobbies and pursuits, and caring for chores or different private obligations. That data might immediate you to deal with work-life stability points and rethink the advantages you supply your staff. For instance, you might take into account offering extra PTO (paid time without work) or private days to your advantages bundle.

Find out how to simply work out staff’ common work hours and days every year

Should you’re not utilizing a useful small enterprise administration platform like Homebase, you might have to manually calculate what number of hours or days your crew members work per 12 months on common. Fortunately, these calculations are pretty easy to do by yourself and encompass simply three steps.

Principally, they are often damaged down as follows:

1. Add up an worker’s common weekly work hours or days
2. Multiply their common weekly work hours or days by 52
3. Subtract public holidays, their paid time without work allotment, and different anticipated absences 

1. Add up weekly work hours or days

First, calculate what number of hours or days the crew member works in a typical week. These numbers may be the identical for all staff or fluctuate vastly relying on how common your employees schedules are.

In the USA, the everyday full-time work schedule consists of 40 hours distributed over 5 days, often Monday by means of Friday. Nevertheless, small companies, particularly these in customer support industries like hospitality, typically have extra irregular timetables as they’re open within the evenings and over the weekend.

Let’s take into account a few examples:

• Amanda works for a development firm. She usually works 10 hours per day from Monday by means of Thursday. She begins work at 7am and finishes at 5pm. So, on common, she works 40 hours per week and 4 days per week.
• Mark is a supervisor at a neighborhood youngsters’s clothes retailer. He often works 8 hours per day from Wednesday by means of Sunday. He begins work at 10am and finishes at 6pm. So, on common, he works 40 hours per week and 5 days per week.

Professional tip: Make sure you’re calculating the person’s working hours or days in a traditional week as you’ll be utilizing this complete as the typical for all the 12 months.

2. Multiply common work hours or days by 52

There are 52 weeks in a calendar 12 months, so subsequent, all it’s important to do is multiply the worker’s common quantity of weekly work hours or days by 52. Let’s proceed with the examples we used within the earlier step:

• Amanda works 40 hours and 4 days in a median week. So, she would have 2080 potential working hours and 208 potential working days per 12 months.
• Mark works 40 hours and 5 days in a median week. So, he would have 2080 potential working hours and 260 potential working days per 12 months.

Don’t rush off! Our work isn’t executed but as a result of not many individuals truly work all of their potential working days or hours every year. We nonetheless have to account for public holidays and different variables like paid time without work, sick go away, and different foreseeable office absences.

Professional tip: Learn the way Homebase’s scheduling, payroll, and HR and compliance instruments work collectively that will help you handle your staff’ paid time without work (PTO) for you with this informative video.

3. Account for public holidays, paid time without work, and different foreseeable absences

Relying on established public holidays, the native and federal labor legal guidelines that apply to you, and your individual inner insurance policies, your crew members will likely be allotted a certain quantity of working days off per 12 months for issues like vacation, sick go away, and different private causes. 

So, to accurately estimate your staff’ common working hours or days per 12 months, you must take into account these fastened absences forward of time. After all, there could also be some slight discrepancies between what number of trip days crew members are allotted and what number of they find yourself taking, however we’re speaking about averages quite than fastened numbers.

Utilizing the earlier instance, let’s think about that Amanda will get all 11 federal public holidays per 12 months off work. She additionally will get one other ten working days of paid trip, 5 sick days, and 5 private days. That quantities to 31 working days or 310 working hours off per 12 months.

Alternatively, Mark will get all 11 federal public holidays off work however can also be entitled to a different three as a result of he lives and works in Texas, and the state has a number of regional public holidays. His employer additionally provides him 15 working days of paid trip, 5 sick days, and two private days. That quantities to 36 working days or 288 working hours off per 12 months.

Now, we have now to subtract Amanda and Mark’s anticipated days and hours off from the whole we got here up with within the earlier step:

• 2080 (Amanda’s potential working hours in a median 12 months) – 310 (Amanda’s anticipated hours off in a median 12 months) = 1770 (Amanda’s anticipated working hours in a median 12 months)






• 208 (Amanda’s potential working days in a median 12 months) – 31 (Amanda’s anticipated days off in a median 12 months) = 177 (Amanda’s anticipated working days in a median 12 months)

• 2080 (Mark’s potential working hours in a median 12 months) – 288 (Mark’s anticipated hours off in a median 12 months) = 1792 (Mark’s anticipated working hours in a median 12 months)






• 260 (Mark’s potential working days in a median 12 months) – 36 (Mark’s anticipated days off in a median 12 months) = 224 (Mark’s anticipated working days in a median 12 months)

Homebase makes small enterprise admin simple

At face worth, understanding the typical variety of working hours and days your crew members full every year might not appear essential. However it’s helpful data for each small enterprise house owners and staff to know as a result of it helps you in staying compliant with native labor rules, informs proactive hiring and recruitment selections, supplies a greater image of crew members’ hourly charges and annual take-home revenue, and helps you uncover work-life stability points.

As well as, as we’ve seen, it’s not too troublesome to calculate common annual work hours and days — merely observe the steps we outlined above. Nevertheless, as a small enterprise proprietor, there’s no such factor as saving your self an excessive amount of time. So, why not use specialised small enterprise instruments like Homebase payroll and HR and compliance to maintain these calculations and concerns for you?