Compare revenue generated per FTE with loaded labor cost and test whether a workforce scenario changes revenue intensity, labor-cost concentration, or both.
About this analysis
Revenue per employee is a workforce productivity ratio. It can change because of pricing, mix, outsourcing, automation, capital intensity, or workforce structure, so the calculation is designed for internal comparison rather than a universal performance threshold.
Learn more about our Labor Cost Optimization practice.
Use annual revenue and FTE on the same organizational scope.
Enter the revenue and staffing level expected under the comparison scenario.
Current revenue / FTE
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Annual revenue divided by current FTE
Scenario revenue / FTE
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Annual revenue divided by scenario FTE
Revenue / FTE change
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Scenario versus current productivity ratio
Scenario labor cost / revenue
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Loaded labor cost as % of scenario revenue
This comparison keeps revenue growth, staffing growth, and loaded labor cost visible so a higher revenue-per-FTE ratio is not interpreted in isolation.
ILLUSTRATIVE CALCULATION RECORD — REVENUE PER EMPLOYEE Current annual revenue: $24,000,000 Current FTE: 150.0 Average annual loaded labor cost per FTE: $80,000 Scenario annual revenue: $27,000,000 Scenario FTE: 160.0 ILLUSTRATIVE RESULTS Current revenue per FTE: $160,000 Scenario revenue per FTE: $168,750 Revenue per FTE change: +5.5% Current loaded labor cost as % of revenue: 50.0% Scenario loaded labor cost as % of revenue: 47.4% Current annual loaded labor cost: $12,000,000 Scenario annual loaded labor cost: $12,800,000 Revenue growth: +12.5% FTE growth: +6.7% Revenue growth less FTE growth: +5.8 percentage points Revenue less loaded labor cost — current: $12,000,000 Revenue less loaded labor cost — scenario: $14,200,000 JavaScript replaces this illustrative record with the visitor's current assumptions.
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