Net Revenue per full-time employee is used to assess the efficiency and productivity of a company. It is calculated by dividing the company's net revenue by the number of full-time equivalent (FTE) employees, including all people working for the business (company owners or principals and non-billable staff like
office managers, marketing staff, or financial people).
This metric provides insight into how effectively the company is generating revenue relative to its size. This allows you to compare your company’s performance with companies of different sizes. A higher value indicates that the company is generating more revenue per employee, which generally reflects higher productivity, better
utilization of staff resources, and higher profitability. It is often used as a benchmark to compare performance over time or against industry standards. We recommend tracking this both quarterly and annually to visualize trends over time.
Revenue per Full-Time Employee = Net Revenue / No. of Full Time Employees
So Revenue/FTE indicates how much money your business generates per employee.