Full-time equivalent

Full-time equivalent (FTE) is a standardised measure used to compare the total hours worked by employees regardless of their individual working patterns. One FTE is equivalent to one full-time worker.

FTE is calculated by dividing total hours worked by the standard full-time hours for the organisation. For example, if a business defines full-time as 40 hours per week, two part-time employees working 20 hours each would represent 1.0 FTE.

FTE is useful for:

• Budgeting and headcount planning
• Comparing staffing levels across different sites
• Regulatory reporting and compliance
• Benchmarking labour productivity

Understanding FTE helps managers make informed decisions about staffing levels, recruitment, and labour cost management.