Full Time Equivalent
What does “FTE” mean?
FTE stands for “full-time equivalent,” and is used to measure the number of employees working for a company. For example, if a company has 10 employees working full-time, and 10 employees working part-time, the company would have 20 FTEs.
What is a full time equivalent?
A full time equivalent (FTE) is a unit of measure that indicates the number of hours a person works in a typical week. In order to calculate an FTE, the number of hours worked in a week are multiplied by the number of weeks worked in a year. For example, if a person works 40 hours per week for 50 weeks in a year, their FTE would be 2,000 hours.
How can you calculate the number of full-time equivalents in your company?
In order to calculate the number of full-time equivalents in your company, you need to first determine the number of hours worked by all employees in a week. This can be done by dividing the total number of hours worked in a week by the number of employees. Once you have determined the number of hours worked by all employees in a week, you need to then divide the number of hours worked by the number of hours considered full-time. Most companies consider a full-time employee to be someone who works 40 hours a week. Once you have determined the number of full-time equivalents, you can then multiply this number by the number of employees to get the total number of full-time employees.
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