Full Time Equivalent: A Comprehensive Guide

What is Full Time Equivalent (FTE)?

FTE, or full-time equivalent, is a measurement that indicates the number of hours considered full-time work or study in a particular role or organization. It is typically expressed as a percentage, with 1.0 FTE representing the workload of a single full-time employee or student.

How FTE is Calculated

FTE is calculated by dividing the total number of hours worked by employees or students in a given period by the number of hours considered full-time. For example, if a company defines full-time as 40 hours per week and an employee works 32 hours per week, their FTE would be 0.8 (32 hours / 40 hours = 0.8).

Use of FTE in Business and Education

FTE is a valuable metric for businesses and educational institutions because it allows them to:

• Measure and compare the workload of individuals and teams
• Forecast resource needs and staffing levels
• Calculate employee benefits and compensation
• Assess the efficiency of operations and identify areas for improvement
• Compensate part-time employees for hours worked, even if they don't work a full week