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Full-Time Equivalent

Also called FTE

Full-time equivalent: a way of counting staff by workload, where two half-time people equal one FTE. Used for headcount planning and comparisons.

Why it matters

Thinking in FTEs gives an honest picture of how much labor capacity a plan needs, especially with part-time or contract mixes. It keeps hiring plans and budgets grounded in actual work rather than raw headcount.

For example

The plan calls for the equivalent of five full-time engineers, met by four full-timers and two half-time contractors, five FTEs of capacity.

Related terms

Fractional Executive Org Chart Hiring Funnel

Also in Starting Up

See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.

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