What is a Full Time Equivalent? (FTE)
Full-Time Equivalent (FTE) is a standardized unit that converts various work schedules into the equivalent of full-time employment for measurement and planning purposes.
One FTE typically represents one full-time employee working standard hours (often 40 hours weekly or 2,080 hours annually). Organizations use FTE calculations to measure workforce size, compare staffing across departments, plan headcount budgets, allocate resources, and ensure regulatory compliance.
FTE metrics enable accurate workforce analytics by normalizing part-time, temporary, and full-time positions into comparable units. This measurement is essential for budgeting, capacity planning, productivity analysis, and benchmarking, providing consistent workforce metrics regardless of employment arrangements.
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