FTE (Full-Time Equivalent)

Learn about FTE (Full-Time Equivalent) and more with Workstream and improve your hiring vocabulary. Workstream helps companies hire better, faster - everyday.
Schedule a Demo Learn more about workstream

FTE (Full-Time Equivalent)
 

What is the meaning of FTE? 

FTE, or “Full-Time Equivalent,” is a unit of measurement equivalent that refers to the number of hours worked by one employee on a full-time basis. Simply put, FTE is the measurement of an employee’s workload. By using the FTE concept, a company can convert the hours worked by several part-time or contract employees into the hours worked by full-time employees. 

How do you calculate FTE? 

Generally, a regular workload of a full-time employee is 8 hours a day for five days a week. In total, this is 40 hours per week. This is the usual work schedule of many businesses in the United States.

If you use the FTE representation for employers with a 40-hour work schedule, a regular day’s work of one full-time employee (8 hours a day) is represented as 1.0 FTE. Similarly, an employee who works only 20 hours per week is 0.5 FTE. 

Let’s break the calculation step by step. To calculate FTE, divide the employee’s scheduled hours divided by the employer’s hours for a full-time workweek. 

                FTE = Total Hours Worked in a Week
                           Total Hours for a Full-Time Workweek

Let’s have an example:

Let’s say a company’s total hours for a full-time workweek is 40 hours. A part-time employee works 10 hours. Using the formula above:

            FTE = 10 hours
                       40 hours

In this example, the employee would be 0.25 FTE. 

What are the benefits of calculating FTE? 

Organizations use FTEs to know the workload of their employees. More importantly, using FTE allows them to find out how many part-time or contract employees and the hours that they work compare to full-time equivalents. By converting the number of hours worked by part-time employees into full-time equivalents or FTE, the company can find out how many full-time employees the part-time employees are equal to.

Using FTEs allows companies to analyze the work effectiveness of part-time employees based on their work contributions. Businesses can more accurately set work metrics and benchmarks. Also, FTE can be used for accounting purposes, computing wages, and calculating company expenses. 

Try out Workstream to hire employees for
your business

A revolutionary hiring process for Hourly positions

A revolutionary hiring process for Hourly positions Hiring hourly staff in San Francisco can be a tough job. Workstream can help accelerate the process by letting you post on job boards like Indeed within seconds.


1-Click Job Posting

No more tedious copy and pasting. We integrate with all the top job boards. All applicants funnel into one intuitive dashboard.

Text-to-Apply Posters

Print out your unique QR code and text message number. Applicants scan/text to see all open positions and apply right away.

Automated & 2-Way SMS

Engage with applicants via text. Include links to screening questions, forms, and more. Use 2-way text to answer questions.

Endless Integrations

Connect Workstream to your calendar so applicants can schedule interviews. Streamline onboarding with background check & HR integrations.

Candidate Tracking & Scoring

View all your applicants and employees in one place. Make notes on their progress. Access their docs anytime from anywhere.

Customizable Templates

We provide templates for everything from job postings to offer letters. Send links to docs and tax forms via text message so new hires sign digital copies.

What other owners
think about hiring through Workstream

"We had a steady stream of candidates through Workstream."


Organic Sandwich Co.

"User friendly platform both for employer and applicants. Makes communication through recruiting process easy and allows flexibility of automation to keep candidates engaged and creates lots of opportunities to meet and hire the best possible candidate. "


Pangenera, LLC DBA Panera Bread

Currently hiring on Workstream for:

Cashier

Driver

Baker

"The platform is well-designed and is a time saver for me. Any issues that come up are responded to and addressed quickly. The team members are friendly and polite."


Summit Wine Tastings

Currently hiring on Workstream for:

Houston Adult Beverages Brand Ambas...

Adult Beverages Brand Ambassador