Full Time Equivalent (FTE)

Full-Time Equivalent (FTE) converts the hours worked by part-time, full-time, temporary, and outsourced workers into equivalent number of full-time workers.

What is Full-Time Equivalent (FTE)?

Full-Time Equivalent (FTE) converts the hours worked by part-time, full-time, temporary, and outsourced workers into equivalent number of full-time workers.

For example, if the standard full-time weekly hours are 40:

  • 1 full-time agent working 40 hours = 1 FTE
  • 2 part-time agents working 20 hours each = 1 FTE
  • 1 full-time and 4 part-time agents (10 hours each) = 2 FTE

FTE provides a standardized measure of labor capacity. It accounts for staffing mixes with both full and part-time workers.

Why FTE Matters for Customer Support

FTE helps support leaders understand true labor capacity across dispersed teams. This assists in planning, budgeting, and workload balancing.

FTE metrics reveal staffing gaps and surpluses. For instance, volume spikes may require temporarily boosting FTE.

Tracking FTE productivity (cases or calls per FTE) measures labor efficiency. This helps optimize schedules and staffing plans to match capacity with demand.

FTE spend ratios (cost per FTE) evaluate labor costs versus value. More productive FTEs provide higher return on spend.

Forecasting future FTE needs is based on expected volume growth and productivity benchmarks. Accurate forecasts allow support heads to scale teams and budgets appropriately.

Key Takeaways on FTE

  • FTE standardizes labor capacity measurements.
  • It accounts for mixed full-time and part-time roles.
  • FTE assists in planning, budgeting, and balancing workloads.
  • FTE metrics help identify staffing gaps or inefficiencies.
  • Forecasting FTE needs enables smart scaling of teams.

Monitoring FTE provides crucial insights into the true size and productivity of support teams. This allows leaders to optimize staffing, productivity, and budgets for the business needs.