What does Full-time Equivalent (FTE) measure?

Full-time Equivalent (FTE) is a unit of measurement that helps in understanding workloads, staffing needs, and productivity levels in an organization. Specifically, it quantifies the number of work hours performed by all employees, regardless of whether they are full-time or part-time, in terms of full-time employment. By dividing the total number of hours worked by all employees by the standard number of hours that a full-time employee would work, FTE gives a clear picture of how many full-time employees would be equivalent to the current workforce.

The correct option refers to the ratio of regular scheduled hours to maximum yearly hours, aligning with how FTE is calculated. This means that it translates the working hours of part-time employees into full-time equivalents, helping organizations to assess staffing needs and allocate resources more effectively.

In the context of other options, while total staff numbers and average salaries provide important information, they do not reflect the productivity measure that FTE presents. Similarly, focusing solely on hours worked by part-time employees does not encapsulate the broader scope of converting varied employee hours into a standardized measurement like FTE.