The FTE index enables companies to assign a measurable value to their part-time workers in relation to their full-time colleagues.
This can prove really useful when trying to work out pro-rata'd benefits such as holiday.
FTE stands for full time equivalent.
An FTE of 1 represents a full-time employee according to the standard working hours of your company.
And an FTE of 0.5 represents a part-time employee working exactly half the hours of the standard.
Example - A full-time worker does 40 hours/week. They will represent that company's FTE of 1.
A part-time worker at that same company does 15 hours/week. Their FTE therefore will be 15/40 = 0.375.