Full-Time Equivalent

Full-time equivalent (FTE) is a unit of measure that represents the workload of an employed person in a way that makes workloads comparable across various contexts. One FTE typically equates to one employee working full-time – usually 40 hours per week. Part-time or temporary employees contribute to FTE based on the proportion of hours they work relative to a full-time schedule. For example, two employees working 20 hours per week each would equal one FTE. FTE is commonly used in budgeting, workforce planning, productivity analysis, and benchmarking to standardize labor capacity and resource allocation across departments or projects.