HR & People / Finance
Revenue per Employee RPE (aliases: revenue per FTE, revenue per head)
How much revenue the business generates per person on staff.
The fork, why two teams get different numbers
The denominator is the whole fight: heads versus FTE, contractors in or
out, and period-end headcount versus average headcount over the revenue
period. Finance often uses average FTE; a quick investor slide uses
period-end heads. The numerator forks too, total revenue versus net
revenue. Any two of these choices produce a different "revenue per
employee" for the same company and quarter.
The trap
A company that outsources heavily shows a sky-high revenue per employee because the contractors doing the work are not in the headcount denominator, comparing it to an in-house competitor is apples to oranges.
In the Metric Library
- The full trap, worked on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: SHRM