What does FTE stand for in human resources management?

In human resources management, FTE stands for Full-Time Equivalent. This term is commonly used to standardize the measurement of employee work hours. One FTE is defined as the number of hours a full-time employee is expected to work in a given period, typically annually. By using FTEs, organizations can compare workloads and staffing levels regardless of the number of employees or the hours they work.

For example, if a full-time employee is expected to work 40 hours a week, this corresponds to 1.0 FTE. If there are part-time employees who work varying hours, their work can be converted to FTE to understand the equivalent of full-time work being done. This metric aids in budgeting, workforce planning, and resource allocation, making it an essential aspect of human resources management.