Man-Year: Meaning and Calculations

What Is a Man-Year?

A man-year, or person-year, is a unit of measurement for the amount of work done by an individual throughout the year, expressed in hours. It is calculated by multiplying the number of hours worked by an individual during the week by 52.

Key Takeaways

• A man-year is a unit of measurement for the amount of work done in a year.
• Man-years are expressed in hours.
• A simple calculation of the number of man-hours in a year is 2,080 hours, without accounting for holidays.

How Man-Years Work

The calculation of a man-year varies across industries and organizations, taking into account the average number of hours worked each week, the number of weeks worked per year, and deductions for official holidays. For example, the U.S. Postal Service calculates a man-year as 40 hours per week x 52 weeks, or 2,080 hours. The Office of Management and Budget (OMB) sets 1,776 hours as a person-year, considering holiday time.

Calculating the man-year depends on each company’s specific needs and usage. The definition typically excludes holidays, lunch breaks, 15-minute breaks, and other types of time off. Thus, the man-year should only reflect actual hours worked.

Calculating the Man-Year

An organization may calculate the man-year for its employees for two main reasons. Firstly, it can be used as a performance metric along with sales or cost figures. For instance, a company may calculate the sales per man-year metric and compare it to previous years’ values to assess productivity and per-person contribution towards sales or revenue.

Secondly, calculating the man-year is necessary for budgetary purposes. For example, a corporation may determine the total man-years for different offices it operates and allocate budgets according to office size. In addition, organizations can estimate the number of work hours required for a specific job or task and divide it by a man-year to determine the number of full-time equivalent (FTE) positions needed. Contractors bidding for the job would submit their FTE estimates for consideration. Man-hours can also help managers establish the personnel requirements and create a project timeline.