Full-Time Employee
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Full-Time Employee
What is a Full-Time Employee?
Full-Time Equivalent
A Full-Time Employee (FTE) refers to a person who works for the number of hours required to classify the employee as a full-time worker, depending on the policies of the organization or employment law. A full-time employee will be employed by the organization directly and will receive regular payments in the form of salary, among others.
The abbreviation FTE may also be used in the process of workforce planning, where it is used to refer to one full-time position. The idea of one full-time position here means the workload of one full-time employee, whether handled by one person or many part-time workers.
Difference between FTE Role/Position and the Definition of the Term in Job Posting
If you come across an FTE role or FTE position in a job posting, it means that it is a regular employment position, not a part-time role, internship, freelance position, or contractor position. The key reasons why it is important to know about this are as follows:
- Regular number of hours per week (usually 30-40+)
- Access to benefits (health insurance, pension plan, vacation days)
- Employer responsible for withholding taxes from paychecks
- More job stability than contractor positions
This can be contrasted with the definition of the term used in a part-time position, an internship, and a 1099 contractor position, none of which include benefits or are classified as “FTE.”
FTE Calculation
| FTE= Total Hours Worked by All Employees (in a period) / Full-Time Hours (as defined by the employer) |
Company policy states that full-time work involves 40 hours per week. The company has:
3 employees on a full-time basis working 40 hours/week each = 120 hours
2 employees on a part-time basis working 20 hours/week each = 40 hours
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