Global HR Glossary

What is Full-Time Equivalent (FTE)?

Full-Time Equivalent (FTE) is a unit that expresses the workload of an employed individual in a way that makes workloads or class loads comparable across various contexts. 

Application and calculation of FTE 

An FTE of 1.0 is considered full-time, while an FTE of 0.5 signals part-time. Calculating FTE allows organizations to:

• Measure Staffing Levels: Understand whether they have the personnel necessary to meet business demands.

• Allocate Resources: Manage budgeting and staffing efficiently. Regular assessment of FTE helps in strategic planning and operational adjustments to achieve optimal staffing levels.