Certified Nurse Manager and Leader (CNML) Practice Test

What is a full-time equivalent (FTE) defined as?

1. Part-time hours worked in a year

2. Full-time employee paid for half a year

3. Full-time employee paid for one year

4. A combination of part-time employees

The correct answer is: Full-time employee paid for one year

The definition of full-time equivalent (FTE) as a full-time employee paid for one year is accurate because FTE is a standardized measure used to represent the workload of an employed individual or a group of employees in a way that makes workloads comparable across various contexts. An FTE of one typically represents the work of a full-time employee working approximately 40 hours a week for a full year, which often amounts to around 2,080 hours annually. When calculating FTEs, part-time employees' hours can be added together to equal full-time equivalents, thereby providing a clearer picture of staffing needs and labor costs in a healthcare setting. This measure helps managers understand the total staffing capacity and allocate resources effectively. The other considerations about part-time hours or partial employment do not define an FTE adequately, as their focus diverges from the full-time standard that FTE represents.