Knowing how many full-time equivalent employees you have is beneficial for several reasons. For one, it makes planning resources and workloads across full and part-time staff easier. Maybe your team needs extra help from temporary workers or new hires. Or perhaps some of your part-time employees can put in additional hours to pull the weight of a larger project.
The full-time equivalent converts the hours worked by part-time employees into hours worked by full-time employees. In the chart below, because both Carole and Lynn are full-time employees, they would each be counted as one FTE. However, determining the FTE for Jimmy and Marta requires fte meaning calculation. Time tracking in Float gives you a combined view of your team’s estimated vs. actual hours worked so that you can plan future projects with greater accuracy. By knowing how many full-time equivalents you have, you can see where your organization has room for growth.
What does FTE mean in salary?
In short, it is a crucial term that is important for HR specialists and accountants alike. As you will understand by the end of this article, there are plenty of situations in which knowing the meaning of FTE and how to calculate it can be quite useful. The first step to calculating the FTE of your company is to make a list of all of your employees.
Monique Danao is a journalist and freelance writer who has worked with several startups and tech companies. Her https://www.bookstime.com/articles/construction-in-progress-accounting work has been published in Sitepoint, Fast Capital 360, Social Media Today, WPMayor among other publications.
