Revenue per employee
also known as revenue per head · revenue per FTE
Total revenue divided by the number of full-time staff - a quick benchmark of how productively an agency turns people into income.
For example, an agency billing $2,000,000 with 16 full-time-equivalent staff earns $125,000 per employee. Comparing it over time or against peers shows whether the agency is getting more efficient or just adding headcount.
Why it matters to your firm: revenue per employee is a fast read on efficiency and pricing power - it rises when an agency raises rates, lifts utilisation or productizes, and stagnates when it grows by simply hiring. It is one of the cleanest numbers for spotting whether scale is actually paying off.
It varies widely by model, but many agencies land around $100k-200k per full-time-equivalent; the trend over time matters more than the absolute.
Revenue per employee = total revenue ÷ number of full-time-equivalent staff
Use FTE so part-time and freelance hours count fairly.
Revenue per employee calculator
Plug in your numbers - it updates as you type.
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