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How much revenue does each full-time employee generate?

Revenue per employee is a blunt read on labour productivity. It moves with pricing, product mix and how much you outsource as much as with how hard people work, so compare it with your own history before comparing it with anyone else's.

Your assumptions

Worked-example values — replace with yours

Revenue· last 12 months

Full-time-equivalent headcount· average over the same 12 months

FTE

Revenue per employee · Estimated

$277,778

revenue per FTE, per year

Compare with your own trend. Industry levels differ widely (material-intensive metals and distribution run far higher than assembly), so there is no single target. Track the ratio year on year and split price and mix effects from staffing before acting.

This is an estimate. Check it on your own data.

A low ratio is a symptom, not a cause — it can be price, mix or operations. Separating the drivers on your own data is what points to the right fix.

Check it on my data →

Your inputs travel with you into the request, or into the free Margin Scan. Nothing is sent to ADEXMA until you submit a form.

The formula

revenue per employee = revenue (last 12 months) ÷ average full-time-equivalent headcount

Worked example · the values pre-filled above

Revenue: $50,000,000 · Full-time-equivalent headcount: 180 FTE

$50,000,000 ÷ 180 FTE = $277,778 per FTE per year.

Result: $277,778

What this assumes

Headcount is averaged over the same 12 months as revenue and counted in full-time equivalents.
Outsourced work and temporary labour distort comparisons — decide whether they are in or out and stay consistent.
It is an estimate from your own inputs. Results from different tools overlap and must never be added together into one savings figure.

Sources

Bureau of Labor Statistics, Productivity and Costs (output per hour, by industry) — Industry-level productivity series for context.
ADEXMA Calculation Catalog · KPI-XD-005 · part of Margin Architecture™.

Questions people ask

What is a good revenue per employee?

There is no single answer: it depends heavily on industry, mix and outsourcing. Compare it with your own history first.

MarginQuote profitabilityIs this order worth accepting at this price?CashInventory cash releaseHow much cash would we free up by holding fewer days of inventory?

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