- Definition: Full-time equivalent, also known as whole-time equivalent (WTE), is a yardstick to measure how many hours are worked by your part-time and full-time employees combined. The calculation of FTE is an employee’s scheduled hours divided by the employer’s hours for a full-time workweek.
- Example: If you have a 40-hour workweek, employees who are scheduled to work 40 hours per week are 1.0 FTEs. Employees scheduled to work 20 hours per week are 0.5 FTEs. If you have a 35-hour workweek, you would divide the employee’s scheduled hours by 35 to determine the FTE. For example, an employee scheduled to work 21 hours per week would be 0.6 FTE when the full-time workweek is 35 hours.
Reference: www.gusto.com