Full Time Equivalence (FTE)

This is the comparison of an employees assigned working hours against a company standard working hours. A full-time employee would be expected to have a full-time equivalence (FTE) of 1 (or 100%). Using FTE allows benefits and leave entitlements to be accurately calculated for part time workers. It can also be used to normalise working hours so a company can work out how many full employees it requires, which may be a different figure to how many individuals are employed.