{"id":1855,"date":"2022-12-09T12:10:51","date_gmt":"2022-12-09T12:10:51","guid":{"rendered":"https:\/\/resourceguru.wpengine.com\/?p=1855"},"modified":"2025-05-15T12:49:43","modified_gmt":"2025-05-15T12:49:43","slug":"headcount-vs-fte","status":"publish","type":"post","link":"https:\/\/resourceguruapp.com\/blog\/resource-management\/headcount-vs-fte","title":{"rendered":"FTE vs. headcount: which model is best for you?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The FTE vs. headcount dilemma can get people scratching, well, their heads. But in project management planning, people are your most valuable resource and you should treat them as such.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sure, you need enough workers to get the job done on schedule, but you also need to stay on budget\u2014<\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/solve-resource-overallocation\"><span style=\"font-weight: 400;\">without overbooking<\/span><\/a><span style=\"font-weight: 400;\"> your team members. When <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/human-resource-planning-processes\"><span style=\"font-weight: 400;\">allocating human resources<\/span><\/a><span style=\"font-weight: 400;\">, you have two options: the headcount method or FTE (Full-Time Equivalent) calculation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So how do you determine whether FTE or headcount is the best fit for your project? Let\u2019s take a look.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this article \ud83d\udcd6<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/headcount-vs-fte\/#Whats-the-difference-between-headcount-and-full-time-equivalent-FTE\" >What\u2019s the difference between headcount and full-time equivalent (FTE)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/headcount-vs-fte\/#FTE-vs-headcount-calculation\" >FTE vs. headcount calculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/headcount-vs-fte\/#FTE-to-headcount-conversion\" >FTE to headcount conversion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/headcount-vs-fte\/#Headcount-vs-FTE-Whats-the-best-resource-management-model-for-you\" >Headcount vs. FTE: What\u2019s the best resource management model for you?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/headcount-vs-fte\/#Headcount-vs-FTE-A-real-world-example\" >Headcount vs. FTE: A real-world example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/resourceguruapp.com\/blog\/resource-management\/headcount-vs-fte\/#FTE-and-headcount-When-to-use-each-approach\" >FTE and headcount: When to use each approach<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whats-the-difference-between-headcount-and-full-time-equivalent-FTE\"><\/span><span style=\"font-weight: 400;\">What\u2019s the difference between headcount and full-time equivalent (FTE)?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Headcount <\/b><span style=\"font-weight: 400;\">is a simple calculation of the number of people employed by a company or for a specific project.\u00a0<\/span><\/p>\n<p><b>FTE <\/b><span style=\"font-weight: 400;\">(Full-Time Equivalent) is a calculation of your employees\u2019 working hours. Instead of tracking capacity by the number of employees, you\u2019re counting 40 hours worked as a \u201chead.\u201d<\/span><\/p>\n<div id=\"attachment_3940\" style=\"width: 953px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3940\" class=\"size-medium wp-image-3940\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-vs-headcount-943x326.png\" alt=\"Graphic to show the difference between fte vs. headcount.\" width=\"943\" height=\"326\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-vs-headcount-943x326.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-vs-headcount-1042x360.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-vs-headcount-1536x530.png 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-vs-headcount.png 1912w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-vs-headcount-943x326@2x.png.webp 1886w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-3940\" class=\"wp-caption-text\"><em>The difference between fte vs. headcount.<\/em><\/p><\/div>\n<p><span style=\"font-weight: 400;\">Now that we know the difference between headcount and FTE, let\u2019s get into the math part. How do you calculate FTE vs. headcount?\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FTE-vs-headcount-calculation\"><\/span><span style=\"font-weight: 400;\">FTE vs. headcount calculation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s say you have 50 full-time employees working 40 hours per week and 12 part-time employees working 20 hours per week.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Those 12 part-timers work the same amount of time as six full-time workers. So your headcount would be 62 (50 + 12), but your FTE would be 56 (50 + 6).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One full-time employee\u2019s FTE is 1.0. Two half-time employees\u2019 FTE is also 1.0.\u00a0<\/span><\/p>\n<div id=\"attachment_3941\" style=\"width: 953px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3941\" class=\"size-medium wp-image-3941\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-headcount-calculation-943x475.png\" alt=\"Graphic displaying fte vs. headcount calculation with full time and part time employees.\" width=\"943\" height=\"475\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-headcount-calculation-943x475.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-headcount-calculation-1042x525.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-headcount-calculation-1536x774.png 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-headcount-calculation.png 1912w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-headcount-calculation-943x475@2x.png.webp 1886w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-3941\" class=\"wp-caption-text\"><em>Example of how to compare and calculate fte vs headcount.<\/em><\/p><\/div>\n<p><span style=\"font-weight: 400;\">Now that we\u2019ve got the basics down, let\u2019s move on to the advanced class: FTE to headcount conversion.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FTE-to-headcount-conversion\"><\/span><span style=\"font-weight: 400;\">FTE to headcount conversion<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Wondering how to convert FTE to headcount? Say you\u2019re trying to determine the headcount requirements for a project that you expect to take 1,600 hours. To turn those hours into a full-time employee headcount, you would divide 1,600 by 8 (assuming your employees will be working 8 hours per day).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By dividing those numbers (1,600 \/ 8 = 200), you now know that you need 200 hours per day. That will help you determine how you want to break up those hours to find the right number of full-time employees to complete the project within a certain timeframe.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, you could do one of the following:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hire 5 full-time employees to complete the job in 40 days<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">10 full-time employees to complete the job in 20 days<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Or hire full-time employees to complete the job in 10 days<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By understanding FTE to headcount conversion, it\u2019ll allow you to allocate the resources you need to ensure <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/drive-project-success\"><span style=\"font-weight: 400;\">project success<\/span><\/a><span style=\"font-weight: 400;\"> and keep your clients happy. As we all know (too well), it all comes down to <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/avoid-project-delays\"><span style=\"font-weight: 400;\">planning<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Headcount-vs-FTE-Whats-the-best-resource-management-model-for-you\"><\/span><span style=\"font-weight: 400;\">Headcount vs. FTE: What\u2019s the best resource management model for you?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now that you\u2019re up to speed on how to calculate FTE and headcount, it\u2019s time to decide which one is right for your business. Let\u2019s talk about headcount vs. FTE, and why you might choose one resource allocation model over the other.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Headcount planning ensures roles are filled\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Headcount planning (also called workforce planning) calculates each person in one role, whether they\u2019re full-time or part-time workers. The headcount method helps you ensure you have people in place to execute an overall strategy and <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/free-project-plan-template-for-excel\"><span style=\"font-weight: 400;\">project plan<\/span><\/a><span style=\"font-weight: 400;\">. It looks at filling roles in general but doesn\u2019t drill down to aligning people with specific skills to project tasks.<\/span><\/p>\n<h4><strong>How to do headcount planning<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">An effective headcount plan helps you ensure you have the <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-allocation-guide\"><span style=\"font-weight: 400;\">resources you need to successfully complete your project<\/span><\/a><span style=\"font-weight: 400;\">. It can also help you avoid scrambling to backfill important positions once your project is underway.<\/span><\/p>\n<p>Headcount planning involves four basic steps:<\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Define your project goals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine the resources needed to achieve them<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Evaluate your existing workforce and identify gaps<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Create a plan for filling those gaps<\/span><\/li>\n<\/ol>\n<div id=\"attachment_3942\" style=\"width: 953px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3942\" class=\"wp-image-3942 size-medium\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/headcount-planning-in-four-steps-943x479.png\" alt=\"Graphic to outline the four basic steps in headcount planning.\" width=\"943\" height=\"479\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/headcount-planning-in-four-steps-943x479.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/headcount-planning-in-four-steps-1042x530.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/headcount-planning-in-four-steps-1536x781.png 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/headcount-planning-in-four-steps.png 1912w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/headcount-planning-in-four-steps-943x479@2x.png.webp 1886w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-3942\" class=\"wp-caption-text\"><em>Headcount planning starts with these four simple steps.<\/em><\/p><\/div>\n<p><span style=\"font-weight: 400;\">With a roadmap in place for the roles you\u2019re hiring for, you\u2019re in a better position to determine associated costs including recruiting, hiring, onboarding, and infrastructure (computers, desks, etc.). This means you can make sure you have enough budget to meet your project\u2019s needs, and not have to worry about budget issues down the line.<\/span><\/p>\n<h4><strong>Benefits of headcount planning<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">The headcount method is a straightforward approach that can keep <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-management-plan\"><span style=\"font-weight: 400;\">resource planning<\/span><\/a><span style=\"font-weight: 400;\"> relatively simple, especially for a smaller project with clearly defined roles.\u00a0<\/span><\/p>\n<p>Headcount is an ideal model for HR-level planning and scaling an organization.<span style=\"font-weight: 400;\"> It comes with three main benefits:<\/span><\/p>\n<ol>\n<li><em>It ensures roles are filled<\/em> <span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">and you know you\u2019ll have people in place for each project.<\/span><\/span><\/li>\n<li><em>It eases the burden on your people operations team<\/em><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> because they have fewer to fill.<\/span><\/span><\/li>\n<li><em>It predicts your project\u2019s costs accurately<\/em><span style=\"font-weight: 400;\"> when implemented well.<\/span><\/li>\n<\/ol>\n<h4><strong>Problems with headcount planning<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">Headcount planning might not be the right approach for every project as it comes with three obvious limitations.<\/span><b><\/b><\/p>\n<ol>\n<li aria-level=\"1\"><em>The headcount model is rigid<\/em> and can make it challenging to plan for the ebbs and flows of your project\u2019s needs, especially when you need a lot of different skill sets for varying time frames.<\/li>\n<li aria-level=\"1\"><em>It doesn\u2019t consider skills<\/em> which also makes it more likely that high-priority skills aren\u2019t identified early in the staffing process. This can lead to bringing on additional resources, which can negatively impact your budget and create <a href=\"https:\/\/resourceguruapp.com\/blog\/avoid-project-delays\">project delays<\/a>.<\/li>\n<li aria-level=\"1\"><em>It can create friction between teams<\/em> as project management and people operations teams may view headcount planning differently. HR tends to focus on headcount as a strategic tool, while process owners are more focused on what\u2019s needed on the ground. This can create internal friction if you don\u2019t pay attention to the different needs of the teams.<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Ultimately, headcount is more challenging for project planning. Why? Because having a person in a role doesn\u2019t guarantee they\u2019re the <\/span><i><span style=\"font-weight: 400;\">right <\/span><\/i><span style=\"font-weight: 400;\">person for the role as they might not have the right experience or the right skillset.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now that we have a better understanding of headcount planning, let\u2019s take a closer look at FTE.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">FTE planning helps allocate resources more effectively<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The FTE method enables you to diversify your resource allocation based on project needs. So rather than focusing on filling roles, you\u2019re looking at the skills needed to deliver a project.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As opposed to headcount planning, FTE planning takes the scope of the overall project and breaks it down to the tasks involved, how many hours it will take to get the job done, and the skills needed\u2014not the individuals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Looking at all milestones, tasks, and deliverables for the entire project, you may determine that 300 total hours of effort are needed to complete every job. You can then break the functions down to the hours that you want to allocate for each.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Et voil\u00e0! Now you know exactly which person (with which skill set) is needed for your project.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, let\u2019s talk math again.<\/span><\/p>\n<h4><strong>How to use FTE for resource management<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">FTE calculation is a matter of simple division based on your company\u2019s structure: weekly hours worked divided by hours worked to be considered full-time. If a 40-hour workweek is full-time at your organization, you divide the number of hours a part-time employee works per week by 40 to find their full-time equivalent.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So if your project needs a technical writer for 20 hours per week and full-time is 40 hours per week, you divide 20 by 40, which equals 0.5 FTE. If 35 hours per week is considered full-time at your organization, you would divide 20 by 35, which equals 0.57 FTE. To simplify, you would round that up to 0.6.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because you only need that technical writer for 20 hours, you have another 15-20 hours available for another role on the project. If you were using headcount planning, you might pull a full-time technical writer from another project and ultimately underutilize them. Instead, knowing you only need them for 20 hours gives you the option and flexibility to bring in a freelancer.\u00a0<\/span><\/p>\n<div id=\"attachment_3943\" style=\"width: 953px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3943\" class=\"size-medium wp-image-3943\" src=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-calculation-943x302.png\" alt=\"Graphic to show how to calculate fte (full time employees).\" width=\"943\" height=\"302\" srcset=\"https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-calculation-943x302.png.webp 943w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-calculation-1042x334.png.webp 1042w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-calculation-1536x492.png 1536w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-calculation.png 1912w, https:\/\/resourceguruapp.com\/blog\/wp-content\/uploads\/2019\/04\/fte-calculation-943x302@2x.png.webp 1886w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><p id=\"caption-attachment-3943\" class=\"wp-caption-text\"><em>How to calculate fte.<\/em><\/p><\/div>\n<h4><strong>Benefits of using the FTE model<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">The FTE model gives you more flexibility and <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-management-techniques\"><span style=\"font-weight: 400;\">precision in resource management<\/span><\/a><span style=\"font-weight: 400;\"> than a simple headcount. <\/span><span style=\"font-weight: 400;\">It comes with three main benefits:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><em>FTE allows you to adjust resources as needed when priorities shift<\/em> <span style=\"font-weight: 400;\">without pulling a full-time person away from larger commitments. And FTE provides visibility into the consequences of responding to those shifting priorities. For example, you may need to hire someone new because the number of FTEs doesn\u2019t match the number of hours of work needed each week.<br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><em>FTE lets you engage resources with expertise in specific areas<\/em><span style=\"font-weight: 400;\">, like in the tech writer example above. Instead of assigning a full-time employee who may or may not specialize in technical writing, you can hire a technical writing expert to work those 20 hours each week on a short-term basis.<br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><em>The FTE model enables you to make the best use of your budget<\/em><span style=\"font-weight: 400;\"> by allocating resources for the tasks they\u2019re needed for, and only for as long as it takes to get the job done.<\/span><\/li>\n<\/ol>\n<h4><strong>Problems with using FTE planning<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">FTE planning comes with two main constraints, both of them affecting one of the biggest project stakeholders: <\/span><i><span style=\"font-weight: 400;\">the budget<\/span><\/i><span style=\"font-weight: 400;\">.<\/span><b><\/b><\/p>\n<ol>\n<li aria-level=\"1\"><em>It makes it more challenging to identify costs\u00a0<\/em>which can make it challenging to stay aligned with other departments. Sure, you can make the best use of your budget, but you might not always be able to plan for the costs involved such as recruiting, onboarding, and infrastructure.<\/li>\n<li aria-level=\"1\"><em>FTE planning can result in increased costs<\/em> as you could end up hiring 4 people for 10 hours a week. This immediately quadruples the costs of bringing those resources on board and puts a strain on people ops for recruiting and onboarding more staff. With the headcount method, you hire one person for a full-time role.<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The good news is that these are all manageable issues, especially with a resource management tool that can help you with <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-capacity-planning-guide\"><span style=\"font-weight: 400;\">capacity planning<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/resourceguruapp.com\/features\/project-forecasting-reports\"><span style=\"font-weight: 400;\">project forecasting<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Headcount-vs-FTE-A-real-world-example\"><\/span><span style=\"font-weight: 400;\">Headcount vs. FTE: A real-world example<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s say you\u2019re planning for the training stage of a project. Training often consists of writing user manuals, creating modules, and scheduling employees so they can <\/span><a href=\"https:\/\/resourceguruapp.com\/blog\/how-to-schedule-employees-effectively\"><span style=\"font-weight: 400;\">balance their workloads<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">How would you allocate those resources using FTE vs. headcount?<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Using headcount for resource allocation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">With the headcount model, you might assign one training coordinator to handle the whole piece. They could work in a full-time role managing all the moving parts of the training.\u00a0<\/span><\/p>\n<p><b>Why this works: <\/b><span style=\"font-weight: 400;\">With just one person in charge of training, they could be responsible for breaking their work into successive tasks. Then you\u2019d get all your training updates from a single source, and be able to resolve issues between individuals rather than by committee.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Using FTE for resource allocation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The FTE model would enable you to divide and conquer the various tasks associated with training. You might hire a part-time instructional designer and engage a separate resource for communication and coordination of the training schedule.\u00a0<\/span><\/p>\n<p><b>Why this works: <\/b><span style=\"font-weight: 400;\">Two or more resources working simultaneously can get more done faster than one person managing every aspect of training. But you need to allocate those resources in a way that allows you to manage dependencies and avoid overlapping tasks and wasting time.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FTE-and-headcount-When-to-use-each-approach\"><\/span><span style=\"font-weight: 400;\">FTE and headcount: When to use each approach<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In summary, the headcount and FTE models both have their merits, but only you can decide which method of resource allocation works best for your team.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">FTE is great for planning large-scale and long-term projects because it\u2019ll help you calculate demand. The downside is that you might end up with friction between teams. On the flip side, headcount focuses on maintaining a healthy organizational structure, but you might not be able to find the right people with the right skills for your projects.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, it comes down to choosing the model that best fits the project type.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Related Resource Guru reads:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-management-plan\"><span style=\"font-weight: 400;\">Resource management plan for project managers<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-leveling\"><span style=\"font-weight: 400;\">Resource leveling isn\u2019t enough &#8211; here\u2019s what to do next<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/resourceguruapp.com\/blog\/resource-management-plan-mistake\"><span style=\"font-weight: 400;\">The #1 mistake you\u2019re making with your resource management plan<\/span><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The FTE vs. headcount dilemma can get people scratching, well, their heads. But in project management planning, people are your most valuable resource and you should treat them as such. Sure, you need enough workers to&hellip;<\/p>\n","protected":false},"author":30,"featured_media":2699,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[58,38],"tags":[],"class_list":["post-1855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-resource-management","category-project-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FTE vs. Headcount: Which Model Is Best For You?<\/title>\n<meta name=\"description\" content=\"What&#039;s the difference between FTE (full-time equivalent) and headcount? 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