fulltimeequivalent

Full-time equivalent (FTE) is a unit used to express workload or staffing levels in terms of a standard full-time workload. It converts the work of part-time, temporary, or multiple employees into a single metric that represents the number of full-time positions required to perform the same amount of work.

Calculation: FTE is typically calculated by dividing the total hours worked by all employees in a given period by the number of hours considered full-time for the organization. Commonly, 40 hours per week or 2080 hours per year serves as the standard. For example, two workers each putting in 20 hours per week equal 1.0 FTE; one worker at 0.5 FTE counts as 0.5. If using annual hours, 2080 hours equals 1.0 FTE.

Uses and contexts: Organizations use FTE for budgeting, staffing, and performance reporting. It enables comparisons across departments or sites and helps assess whether staffing matches workload. In healthcare, education, and government, FTE figures are commonly reported to indicate staffing capacity relative to demand.

Limitations: FTE is a workload measure, not a direct headcount or productivity indicator. It does not capture differences in skills, shift patterns, or downtime, and definitions may vary by country, industry, or policy. Overtime, vacations, and vacancies can influence FTE counts, so interpretation should consider context.