Meaning & Definition

full-time equivalent (fte)

Full-Time Equivalent (FTE) is a unit that indicates the workload of an employed person in a way that makes workloads comparable across various contexts. One FTE typically represents the hours worked by a full-time employee. FTE calculations help organizations measure staffing levels, allocate resources, and manage budgets. They provide a standardized way to assess and compare the contributions of part-time, full-time, and temporary employees.