Commercial
Full-time equivalent (FTE)
A unit of capacity equal to one person working a full week.
Definition
A way of counting staffing in units of one full-time working week rather than in people. Two people at half time are one FTE, and a team of four with one person on a three-day week is 3.8 FTE.
Why it matters
FTE counts capacity, not continuity, and buyers routinely mistake the two. One FTE split across three part-time people is not the same as one person: it triples the onboarding ramp and the context that has to be kept in sync. If continuity matters, contract for named people, not for FTE.
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Read the definition ›Next step
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