HR Glossary
Full-Time Equivalent (FTE)

Full-Time Equivalent (FTE)

Updated on:
August 22, 2022


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Table of Content

What is Full-Time Equivalent (FTE)?

Full-time equivalent, or FTE, is the number of employee hours that a work week represents. The FTE can be used to compare an employee's performance to other employees.

The FTE is calculated by dividing the total number of employees in a given position by the number of hours the employees work each week. For example, if a company has four full-time employees working 40 hours a week, their FTE is 1.

What Is the Difference Between FTE and Headcount?

Headcount refers to how many people your company employs. Calculating headcount is as simple as adding up your employees, while FTE refers to the number of full-time hours being worked at the company.

Full-time equivalent (FTE) employees are those who work a full-time schedule as determined by their employer. An FTE is calculated as the number of hours worked divided by the number of hours in a full-time work week. This number is important for businesses because it allows them to compare the productivity of their employees against the amount of time they actually work.

FTEs are necessary in order to accurately measure the productivity of employees. By dividing the number of hours worked by the number of hours in a full-time work week, businesses can get a clear picture of how much work is actually being done by their employees. This information is important in order to make sure that employees are working efficiently and that the business