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THE TECHNICAL LANGUAGE OF DIGITAL B2B INFRASTRUCTURE

METRIC
REVENUE OPERATIONS

Full-Time Equivalent (FTE)

A unit that expresses workload or capacity as the number of full-time people it equals; 1.0 FTE is one full-time role.


BUSINESS RELEVANCE

FTE turns hours into a staffing language leaders understand, so teams can compare workloads, plan hiring and express time saved by automation or AI as people-equivalents.


IMPLEMENTATION EXAMPLE

A 15-person product team recovers about 64 hours a week through better AI adoption; at a 40-hour full-time week that equals 1.6 FTE of capacity, which the team moves to customer research instead of hiring.


LIMITATIONS

FTE hides who does the work and which skills are involved, and recovered FTE is capacity, not a cash saving, unless roles or spending actually change. Full-time hours differ by country, contract and company.


TECHNICAL EXPLANATION

FTE = total hours worked or recovered ÷ hours in one full-time schedule for the same period. In Eurostat's example, a part-time employee working 20 hours a week where full-time is 40 hours counts as 0.5 FTE. Statistical offices use FTE to compare employment across part-time and full-time work. In AI Return on Investment (ROI) models, recovered value divided by the Fully Loaded Cost per person gives the FTE equivalent of the capacity freed.


Secondary Topics

Intelligent Automation

Related terms

First Contact Resolution (FCR)

METRIC
REVENUE OPERATIONS

A support performance metric tracking the percentage of customer inquiries resolved satisfactorily during initial contact.

Customer Lifetime Value (CLV)

METRIC
REVENUE OPERATIONS

The projected total gross margin or revenue generated by a customer account over the entire commercial relationship duration.

Key Performance Indicator (KPI)

METRIC
REVENUE OPERATIONS

Key performance indicators are the few metrics tied to strategic goals, each with a definition, owner, target and review cadence, used to steer performance.

Customer Acquisition Cost (CAC)

METRIC
REVENUE OPERATIONS

A core financial metric measuring the total sales and marketing expenditure required to win a single new customer.

Monthly Recurring Revenue (MRR)

METRIC
REVENUE OPERATIONS

A core subscription metric measuring normalized predictable monthly revenue expected from active customer subscriptions.