Revenue per FTE is a well-known metric to measure and compare your company's performance with other companies. The more revenue you are able to generate per FTE, the better (value of your services). The fewer people (FTE) you need to generate revenue, the better (efficiency).
Please note: Column names in exports may differ from what you are used to in the Insights module
We calculate revenue per FTE using the following formula:
Invoiced revenue
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(Scheduled hours / working hours)\
By scheduled hours we mean the number of hours all employees work together according to contract. By working hours we mean the number of hours in a period that corresponds to 1 FTE. Any purchase costs are NOT deducted from the invoiced revenue.
Example of a calculation:
€ 200,000 invoiced
5,034 scheduled hours this year
2,080 working hours (2023) FTE = 5034 / 2080 = 2.42 € 200,000 / 2.42 = € 82,644 revenue per FTE
Points of attention
The number of hours a full-time position contains can vary by employer. A full-time working week consists of 40, 38 or 36 hours per week, depending on the applicable collective labor agreement collective labor agreement. We assume 40 hours.
Structure of the report
The report consists of a brief overview, a chart and a detail view. The report always looks at the past 12 months and therefore does not take filters into account.
In the overview you can see the Revenue, FTE calculation in hours, Revenue per FTE, and the Revenue per FTE excluding purchase costs.
Chart: Revenue per FTE per month
This chart always looks at the last complete month + the past 11 months for each month. It is therefore a rolling average over the past year. This way you can clearly see what the trend is of your revenue per FTE.
Tab: Detail view
The detail view contains a table in which you can see in detail how revenue per FTE came about in a given period.
The applicable period corresponds to the entire report and is based on the past 12 months. In addition, as usual, you can toggle various columns on or off and export the table to Excel.
Additional data
In addition to 'Revenue per FTE', 'FTE' and 'invoiced', the table also contains a number of indicators that influence revenue per FTE. Here you will find 'Productivity' and 'Average hourly rate'.
Average hourly rate is determined by dividing the value of all 'direct' hours written (hours registered on projects, where 'invoice project' on the 'project settings' tab is set to 'yes') excluding corrections in a given period by the number of direct hours written in that same period.