Human Capital Metrics Handbook Revenue Per FTE Metric
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Cost, Revenue & Profit Optimization 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 for each FTE. "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. It is a high-level productivity metric that is often compared, actively benchmarked and shared in public statements and presentations. "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. Revenue Average Metric Revenue per FTE
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Average amount of net revenue generated foreach FTE.Get more details: http://www.hcminst.com/handbook
Transcript of Human Capital Metrics Handbook Revenue Per FTE Metric
Cost
, Rev
enue
& P
rofit
Opt
imiz
atio
n
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
