HR Terminology Full-time Equivalent  

Complygate has put together a complete list of key HR terms, phrases, acronyms and jargon to assist HR professionals in navigating the extensive, ever-growing HR terminology. We would like to encourage you to read, share and make use of this terminology collection. If you have any suggestions of terms or keywords we have missed, please contact us and we will include them in our next update.

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What is Full -time Equivalent (FTE)?

FTE stands for "Full-Time Equivalent", which is the total amount of hours that a single full-time employee has worked over any period.

  • Full time equivalent is based on a full-time basis of the time one employee/worker has worked.
  • This method is used by organisations to convert the hours of part-time employees into FTE units by calculating the sum of part-time and contract employees divided by the FTE unit.
  • There are different reasons for business using full-time equivalent, for example, profits per employee or benchmarking revenues.
  • There are laws in place to state how to carry out calculations correctly, such as The Patient Protection and Affordable Care Act.

How is FTE Calculated?

At a typical UK company, FTE would probably be the standard 40-hour workweek:

  • Eight hours per day,
  • Five days per week.
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