Metrics Handbook

Revenue per FTE

Importance:

Critical

Level of Complexity:

Calculated

Formula:
Total Net Revenue / Average Employee FTE or
Average Workforce FTE

Workforce Dimensions:

Sub Category:
Measurement Type:

Revenue
Average Metric

Description:
Average amount of net revenue generated for each
full time equivalent employee (FTE) as measured
either for all employee FTE or total workforce FTE
which includes employees, temporary workers and
contractors.

Employee FTE, Workforce FTE

Cost, Revenue and Profit Optimization

Metric Dimensions:
All Organization, Division or Business Unit

Most Common Uses:

"Lagging" - Revenue per FTE is most commonly used as a lagging measure of the organization's overall
workforce productivity and performance and in successfully leveraging the workforce to maximize
revenue across the enterprise.

"Lagging" - Many organizations use Revenue per FTE as a lagging indirect indicator of workforce
productivity, comparing, actively benchmarking and sharing this high level productivity metric in public
statements and presentations.

Best Use:
"Leading" - Revenue per FTE is a leading indicator of potential future increasing or decreasing trends in
revenue per full time equivalent (FTE) for the organization. Revenue per FTE, if used with critical job
roles such as sales people or engineers, may better correlate and predict future performance and link to
profit per FTE, which in turn links closely with total market capitalization and valuation.

18

Human Capital Management Institute 2010