HR Glossary
Full-Time Equivalent (FTE)
A unit that standardizes part-time and full-time headcount into a comparable full-time measure.
Definition
FTE converts a mix of part-time and full-time employee hours into an equivalent number of full-time positions — for example, two employees each working half-time equal 1.0 FTE.
Why It Matters
It's used in workforce planning and budgeting to get an accurate view of staffing levels beyond simple headcount.