This metric is intended to capture the number of full-time equivalent permanent (full-time and part-time) employees leaving the organization voluntarily or involuntarily between the beginning and end of the reporting period.
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This metric only includes permanent (full-time and part-time) employees, not temporary workers or independent contractors.
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The calculation of FTEs is an employee's scheduled hours divided by the employer's hours for a full-time workweek. When an employer has a 40-hour workweek, employees who are scheduled to work 40 hours per week are 1.0 FTEs. Employees scheduled to work 20 hours per week are 0.5 FTEs. FTE calculations are about hours worked rather than number of employees. You could have four employees and only one FTE.