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Human Capital Metrics Handbook

25© Human Capital Management Institute

Net Revenue / Average Employee FTE

Critical

Calculated

Importance:

Level of Complexity: Measurement Type:

Sub Category:

Formula: Description:

Workforce Dimensions:

Metric Dimensions:

Most Common Uses:

Best Use:

Employee FTE, Workforce FTE

All Organization, Division or Business Unit

Average amount of net revenue generated foreach FTE.

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

"Lagging" - Many organizations use Revenue per FTE as a lagging, indirect indicator of workforceproductivity. It is a high-level productivity metric that is often compared, actively benchmarked andshared in public statements and presentations.

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

Revenue

Average Metric

Revenue per FTE