FTEI

FTEI stands for Full-Time Equivalent Indicator. It is a metric used to measure the workload or staff capacity within an organization. Essentially, FTEI converts various working arrangements, such as part-time employees, contractors, or even individual tasks, into a standardized equivalent of a full-time employee. This allows for a more consistent and comparable way to assess resource allocation and personnel costs.

The calculation of FTEI typically involves taking the total hours worked or allocated across different roles and dividing that by the standard number of hours considered a full-time workweek or month within that organization. For example, if a full-time employee works 40 hours a week, two employees working 20 hours each would equate to one FTEI. Similarly, a project requiring 80 hours of work from various individuals might be represented as two FTEI for the duration of that project.

Organizations utilize FTEI for various purposes, including budgeting, project management, and strategic workforce planning. By understanding their FTEI, companies can better manage their payroll expenses, identify potential staffing shortages or surpluses, and make informed decisions about hiring or outsourcing. It provides a clear, quantitative measure that simplifies complex staffing structures.