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Back to Human Resources Definitions

What is Full-time equivalent (FTE)

Full-time equivalent, or FTE, is a way for organizations to determine the hours worked by all staff collectively. It is the number of hours worked by a full-time staff member across any defined period of time. For example, an average of 1.0 FTE for one working week would be 40 hours.
FTE provides a way for companies to convert the hours worked by part-timers and contractors into how many full-time staff it would take to do those roles. For example, if each week, your part-time staff work a total of 120 hours between them, this adds up to the equivalent of 3 full-time roles at 40 hours per week. This information is useful for payroll, job definition, and budgeting purposes.

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