Full-Time Equivalent (FTE)
A unit expressing workforce size by converting all hours worked into full-time positions.
Full-time equivalent is a way of measuring workforce size that converts part-time and variable hours into the equivalent number of full-time roles. Two people each working half a full week, for instance, equal one FTE.
FTE is more useful than a simple headcount for budgeting, productivity analysis and workforce planning, because it reflects actual capacity rather than the number of people.
Reporting both headcount and FTE gives leaders a fuller picture of the workforce.
