Clarity Glossary for Project and Portfolio Management

Full-Time Equivalent

A Full-Time Equivalent (FTE) is a standardized metric used to represent the workload or capacity of a full-time position, regardless of how many individual employees contribute to that workload.

Explanation

A Full-Time Equivalent (FTE) is a standardized unit used to represent work capacityCapacitySynonym for → AvailabilityGeneral term for available work capacity. in resource managementResource ManagementResource management includes the planning, allocation, and monitoring of resources in projects.. One FTE corresponds to the workload of a full-time position over a defined period.

This metric enables organizations to compare different working-time models. For example, two employees each working at 50% capacity together equal one Full-Time Equivalent.

In projectProjectA project is a temporary initiative with clearly defined objectives, resources, and a specific outcome. and resource management, FTEs are used to plan capacity, analyze staffing needs, and allocate resources efficiently across projects.

Synonyms and Abbreviations

  • FTE: abbreviation for Full-Time Equivalent
  • Capacity Unit: a general term for a standardized unit used to represent work capacity

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