The FTE calculation counts part-time employees as a fraction of a full-time employee, most often on the basis of the number of hours worked. How to Calculate Full Time Equivalent (FTE)?įTE, an abbreviation for “full time equivalent”, counts the approximate number of full-time employees employed by a specific company, but with the inclusion of part-time employees.Įmployers can use FTE to evaluate their hiring capacity and current payroll, as well as for reporting purposes related to labor laws and employee benefit programs. In practice, FTE is measured by companies to estimate the number of full-time employees employed within a specific time frame. The Full Time Equivalent (FTE) represents a unit of measurement standardized to equal the number of hours worked by the typical full-time employee.
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