FTE stands for 'Full-time equivalent'. This helps in understanding the productivity level of staff for any business unit.

FTE analysis reveals the optimum level and accurate productivity level of the workforce. It is sometimes confused with Actual headcounts. Actual Headcount, popularly known as 'HC', represents the actual number of staff in any business. With a new recruitment or resignation of staff, there will be a change in HC.

FTE is a count of the actual number of hours used by active staff in the business. It is quite fluid because the actual number of staff hours used in businesses is based on the business requirements, i.e., staff leaves/holidays change their working days/hours.

If any business operates on part-time staff(PT) or casual staff(CS), then it is easy to inflate and reduce the number of staff working on the business unit, thus making the FTE concept more useful.

It is a process of managing payroll costs by managing FTE.

The challenge that we may face is if the staffing is based on FT (Full-time permanent staff), then it will be difficult to reduce the actual working hours.

Managers must assess the requirement of FTE based on business, on books, or weekly trend to ensure proper control of working days or hours of staff.

This course explains the link between FTE and Productivity.

Anyone after completed this course can start using the FTE and Productivity model in their businesses and take the benefit.