FTE (full-time equivalent)

What is FTE (full-time equivalent)?

Full-time equivalent (FTE) is a way of counting staff by total working hours rather than headcount, where one FTE equals one full-time employee and two half-time employees also add up to one FTE.

FTE is useful when a team mixes full-time, part-time, and contract staff. Headcount tells you how many people there are; FTE tells you how much full-time-equivalent capacity that adds up to, which matters for planning and budgets.

For leave and pay, part-time staff are usually handled pro rata - a half-time employee accrues half the leave. HREvio tracks each person individually with their own balance, and plan limits are by headcount, not FTE.

Related terms

• Headcount
• Pro-rata holiday entitlement
• Core HR

See also

• HREvio vs Personio
• HREvio vs Factorial