FTE (Full Time Equivalent) is a term that indicates a unit, which expresses the degree of involvement or the workload capacity equivalent to 100% capacity. In other words, it is a equivalent of one full-time worker.
- 1 FTE means 100% capacity, i.e. usually 8 hours a day (full-time)
- 0.5 FTE means 50% capacity, i.e. usually 4 hours a day (half-time)
FTE in practice: FTE is used to calculate the consumption of human labor to a work task or project. Using FTE measures how much labor capacity a given task, activity or project needs. Often, the equivalent is also used to express the labor savings in staff reduction in the organization.
Note: The abbreviation FTE is sometimes also used as Full Time Employee.