Full Time Equivalent (FTE)

Author: CCa2z

Date: 13th October 2009

An FTE represents one full-time employee working the set required hours for a month.

If the normal working day for a full-time employee is 7 hours and 7 hours of work is available then 1 FTE is required.

If 14 hours of work is available then 2 FTEs are required.

The 2 FTEs could be made up of 2 full-time staff or, maybe, 4 part-time staff each working 3.5 hours.

The term headcount refers to the number of employees or heads - so in the part-time example, above, 2 FTEs would equal an headcount of 4.


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