Difference Between FTE and Headcount
FTE vs. Headcount
FTE (meaning full-time equivalent) and headcount are two methods of counting a certain number of members in a population or an organization. Both measures also account for the measurement of rendered time. In addition, both headcount and FTE are used in the fields of education and business.
Both measures are used in the Human Resources Department of schools and business enterprises. Schools use them to calculate the number of students in attendance and the students’ credits in a particular term or academic year.
“Headcount” means “the actual number of the existing population,” whether the population consists of students or employees. Usually, a headcount factors just one individual as one member in a given population. Any attributes or distinctions of an individual like their skills, credits, or hours are not considered. Furthermore, the nature or status of the individual is not recognized. Both part-time and full-time individuals are represented and counted.
Conducting a headcount is the preferred measure in counting the population for a basic demographics profile and analysis.
It also refers to a process in educational institutions to establish every student’s academic and career potential from admittance to graduation. This process holds the assumption that all students have equal abilities and potential. In some educational institutions, a headcount is referred to as “individual enrollment.”
On the other hand, full-time equivalent is a measurement for people with either full-time work (for employees) or full-time credits (for students). A person with a full-time equivalent must render a specific amount of hours or credits for a full-time status. In this situation, FTE represents the actual workload hours as an equivalent to the status of the worker as full time.
For example, a full-time worker in any business setting is required to render 40 hours a week. In other situations, such as excess personnel, two or more part-time workers can render full-time services or work as long as the people meet the full-time equivalent (40 hours) in their work hours. In this manner, the company’s labor is evenly distributed with utilization of both personnel and time.
In a full-time equivalent, the main factors in measuring and calculating are the person that is counted as well as the workload hours or credits. FTE is a useful method for calculating work hours, hours rendered, and realignment in cases of overtime. After the calculation of FTE, a company can accurately render payment or compensation for a worker or personnel’s rendered hours.
In an educational setting, FTE is usually used in enrollment of students for a coming term or year. FTE, in this area, is a type of count wherein one student is attending as a full-time student for a full academic year. This means enrollment and attendance for the whole academic year. In reality, the student’s total credit hours are the subject of measurement. As in workplace FTE, a student must have a specific number of credits to meet the requirements.
Summary:
1.Headcount and full-time equivalent are types of measurement used to count and recognize the population in an environment. Both are utilized in schools and business organizations.
2.Headcount is the sum and actual number of individuals in a particular group. There is no distinction between individuals. It is simply counting off one member after another to produce a number; one individual counts as one member.
3.On the other hand, full-time equivalent (or FTE) counts for both members and the time rendered for a particular company (for a worker) or amount of total credits in a particular term or year (for a student). In FTE, there is a specific amount of time or credits to be taken before being acknowledged or given the status of full time. For workers, it necessary to render 40 hours of work time (either by an individual or split between several part-time individuals), while students have to take a specific number of credit hours for a term or year.
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References :
[0]http://leftfootforward.org/2011/11/george-osborne-public-sector-pensions-attack-hits-women-hardest/
[1]https://www.peoplematters.in/news/recruitment/bank-bazar-to-add-400-more-to-its-headcount-15110?utm_source=peoplematters&utm_medium=interstitial&utm_campaign=learnings-of-the-day
The statement “Conducting a headcount is the preferred measure in counting the population for a basic demographics profile and analysis.” can be very misleading. For example, in terms of college students, for ease of calculations, suppose the head count enrollment of the given college is 1000 student. Further suppose 50% of the students are full-time students, 25% are taking 3 credits, 15% are taking 6 credits and 10% are taking 9% credits. The 250 students taking 3 credits would translate into 63 FTE students. The 150 students taking 6 credits would translate into 75 FTE students. The 100 students taking 9 credits would translate into 75 FTE students. Thus, a head count of 1000 students would translate into 713 FTE students, producing just over 70% of the tuition that would have come from 1000 full-time students. If you are looking for financial information FTE is a much better statistic to use than headcount. If you are looking at potential graduates, full-time students are more likely to graduate than part-time students. Again, the FTE student number is a better gauge to use than headcounts for potential program comleters.
If you’re looking for resident student population, most colleges do not allow part-time students to live in residence halls. In this case, the number of full-time students would be a better gauge for estimating the need for residence halls.
Each of the number is useful, but you need to know how it is being used.
Similar arguments can be made for headcount and FTE faculty. I have seen a college where the faculty headcount was over 600, while the full-time faculty count was 180. However, those 180 full-time faculty generated more than 75% of the credits earned by students.
General statement like you made in reference to preferring headcount over FTE are almost never completely true. How’s that for a paradox.
Thanks for this! I appreciate that you looked at the broad scope of applications for FTE and headcount–it’s not *just* organizations that use it. I found an article that might supplement this one for folks looking at the two terms just from a project management or HR lens; might be helpful for your readers