What does FTE mean in Workday and how is it calculated?

[winget]

I'm new to using Workday at my company and I see the term FTE mentioned in several places. What does it stand for, how is it calculated in Workday, and does it affect payroll or headcount reporting? Any explanation with examples would be really helpful.

 

[William]

FTE stands for Full-Time Equivalent, which is a measure of the total number of full-time workers in your company, taking into account both full-time and part-time employees. In Workday, it's calculated by adding up the total hours worked by all employees and dividing that by the standard full-time hours per week, which is usually 40 hours. For example, if you have two part-time employees working 20 hours a week each, their combined FTE would be 1, because 40 hours is the equivalent of one full-time employee. This metric affects headcount reporting, but not directly payroll, as payroll is based on individual employee hours worked and salary rates.

 

[Watson]

In Workday, FTE (Full-Time Equivalent) measures an employee’s workload compared to a full-time schedule. It’s calculated by dividing the employee’s working hours by the company’s standard full-time hours—for example, 20 hours out of 40 equals 0.5 FTE. Organizations use FTE to manage headcount, plan budgets, and assess workforce capacity consistently.