The 'revenue per FTE' shows the average revenue per employee based on a full-time equivalent (FTE) contract. Revenue per FTE is a well-known metric for measuring your company’s performance and comparing it to others. The higher the revenue you generate per FTE, the better (value of your services). The fewer people (FTE) you need to generate revenue, the better (efficiency).
We calculate revenue per FTE using the following formula:
Invoiced revenue
(Scheduled hours / working hours)
Scheduled hours refers to the number of hours all employees collectively work according to their contracts.
Working hours refers to the number of hours in a period corresponding 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 to Note:
The number of hours in a full-time position can vary by employer. A full-time workweek could be 40, 38, or 36 hours per week, depending on the applicable collective labor agreement. We assume 40 hours per week.
Structure of the Report
The report consists of two tabs: an overview view and a detail view.
Tab: Overview View
The overview view always looks at the past 12 months and does not account for filters.
This view includes:
A trendline showing the development of 'revenue per FTE'
An indicator with the 'current' revenue per FTE
A bar chart comparing revenue per FTE per month with the same month of the previous year.
Chart: Revenue per FTE Trendline
This chart looks at each month, always from the last complete month + the previous 11 months. It’s therefore a rolling average over the past year. This helps you clearly see the trend in your revenue per FTE.
Brief Explanation: In the above example, we see the development of revenue per FTE for a 'fictional' client. The data point for '10/2023' shows the revenue per FTE from November 2022 to October 2023. The data point for '09/2023' shows the revenue per FTE from October 2022 to September 2023.
KPI: Revenue per FTE
This indicator shows the revenue per FTE up to the previous month.
For instance, if today is April 18, 2024, this widget will show the revenue per FTE for the months from April 2023 to March 2024.
Chart: Revenue per FTE per Month
This chart shows how a particular month performed compared to the same month one year earlier.
Note: Here, we express revenue per FTE in months rather than years.
Tab: Detail View
The detail view shows three indicators/widgets and includes a table where you can see in detail how revenue per FTE is calculated for a specific period.
The period applicable to the table and widgets can be influenced using the filter on the right side. Additionally, as usual, you can right-click on the title of the table to adjust the table's view. For example, you can add months as columns.
Additional Data
The table contains, in addition to 'Revenue per FTE,' 'FTE,' and 'Invoiced,' several indicators that influence revenue per FTE. For example, you will find 'Productivity' and 'Average hourly rate' here.
The average hourly rate is calculated by dividing the value of all 'direct' hours (hours logged on projects where 'project invoicing' is set to 'yes' in the 'project settings' tab) excluding corrections for a specific period, by the number of direct hours logged in that same period.