FTE (Full Time Equivalent): What is it and how to calculate it?

[bitheerani319]

Full Time Equivalent (FTE) is an HR indicator that can help a company better understand employee productivity and organize work as efficiently as possible, thus improving employee performance.

What you will see in this article:


Productivity and Time: a complex relationship
What is Full Time Equivalent (FTE)?
What is FTE in project?
What is FTE in finance?
What is the ideal FTE?
Why use Full Time Equivalent (FTE)?
How to calculate Full Time Equivalent (FTE)?
Want to know more about how this control works? Find out what c-level executives database Time Equivalent (FTE) is and how to calculate it and improve your team's productivity!

Productivity and Time: a complex relationship
No employee is productive all the time, from the moment they clock in to the moment they clock out. No matter how focused, organized, efficient or professional they are, employees will always need a little time to relax, have a coffee, chat about random topics, check social media, look at the scenery… After all, we are all human beings, not robots.

Having more time does not mean being more productive, but without more hours it is impossible to complete a large number of tasks, especially when obligations pile up. Overload and problems in allocating activities, in addition to harming production, can demotivate employees and, in the worst cases, contribute to increased turnover — generating financial, intellectual and productive costs.

HR should always think of strategies to improve productivity and the internal climate, strengthening employee motivation and engagement. Therefore, it is necessary to keep an eye on both human relationships and what the numbers say about the team.