Headcount

Headcount is a count of the number of individuals employed by an organization at a given point in time. It is a simple metric used to convey the size of a workforce. Depending on the context, headcount can include only permanent employees on payroll, or it can also include temporary staff, contractors, and consultants.

Headcount is different from full-time equivalent (FTE), which measures workload rather than people. FTE converts part-time hours into a number of full-time positions, so two part-time employees may equal one FTE while counting as two people in headcount. Both metrics are used in workforce planning and reporting.

Applications of headcount data include budgeting and headcount planning, capacity assessment, organizational design, and compliance reporting. Managers use headcount by department, location, or job grade to monitor growth, allocate resources, and set staffing targets for the coming period.

Calculation is straightforward: at the date of record, count all individuals meeting the organization’s definition of an employee. Reporting practices vary; some organizations exclude contractors or interns, while others report separate figures for employees, contractors, and temporary staff.

Limitations of headcount as a sole measure include its failure to reflect actual workload, productivity, or skill mix. A stable headcount may mask understaffing in critical roles or overstaffing in others. Complementary metrics such as FTE, revenue per employee, turnover rate, and sentiment indicators provide a fuller picture of workforce health.

See also: Full-time equivalent, Workforce planning, Staffing level, HR analytics.