Full-Time Equivalent (FTE)

Full-Time Equivalent (FTE) is a unit measuring the workload of an employee or group, equating part-time hours to a standard full-time schedule, often 40 hours per week.

1. What is Full-Time Equivalent (FTE)?
   Answer: It is a unit equating part-time hours to a 40-hour full-time schedule.
   
2. How is FTE calculated?
   Answer: It is calculated by dividing total hours by 40 (or the company’s full-time standard).
   
3. Why is FTE important?
   Answer: It helps with staffing, budgeting, and benefits eligibility.
   
4. What is an example of FTE?
   Answer: Two part-time employees at 20 hours each equal 1 FTE.
   
5. How does HR use FTE?
   Answer: HR uses it to assess workforce needs and compliance.