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What Is Full-Time Equivalent (FTE)?

Contact Center Glossary > Full-Time Equivalent (FTE)

Full-Time Equivalent (FTE) Definition | TLDR

FTE represents the total number of hours worked by a full-time employee in a specified period, commonly used as a standard measure of workforce capacity and productivity.

Full-Time Equivalent (FTE) Meaning

Full-time equivalent (FTE) is a unit of measurement commonly used in workforce planning and management to quantify the total number of hours worked by an employee on a full-time basis. It represents the workload of one full-time employee, typically defined as someone who works the standard number of hours per week for a particular organization or industry. FTE is calculated based on the total number of hours worked by an employee relative to the standard full-time work hours for a specific time period, such as a week, month, or year.

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Full-time equivalent (FTE) is a unit of measurement commonly used in workforce planning and management to quantify the total number of hours worked by an employee on a full-time basis. It represents the workload of one full-time employee, typically defined as someone who works the standard number of hours per week for a particular organization or industry. FTE is calculated based on the total number of hours worked by an employee relative to the standard full-time work hours for a specific time period, such as a week, month, or year.

FTE calculations are commonly used in various business contexts, such as staffing analysis, budgeting, resource allocation, and performance measurement. By converting diverse work arrangements into FTE units, organizations can gain insights into their total workforce capacity, identify staffing needs, allocate resources effectively, and assess productivity levels relative to business goals and objectives. FTE is a valuable tool for workforce management, enabling organizations to optimize staffing levels, control costs, and ensure operational efficiency across the organization.

FAQs

Yes. FTE can be both static and dynamic, depending on factors such as employee turnover, changes in work arrangements, or fluctuations in staffing levels. Organizations may need to recalculate FTE periodically to reflect changes in workforce composition and ensure accurate resource management and planning.

It depends. FTE calculations typically include regular working hours and may optionally account for overtime, vacation time, or other leave types, depending on organizational policies and practices. Including these factors in FTE calculations allows organizations to assess employee availability and productivity more accurately.

Yes. FTE allows organizations to standardize and compare the workload of employees across different employment statuses, such as full-time, part-time, or temporary, by converting their hours worked into equivalent full-time units. This enables consistent workforce planning and management, regardless of employees' work arrangements.

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