Revenue-per-Employee Benchmark
Revenue and gross profit per head against adjustable industry quartiles, and the dollar gap to top-quartile productivity.
Example scenario—not a forecast or verified benchmark. Enable JavaScript to edit inputs, view charts, save locally and export your analysis.
Example inputs
- Industry
- home_services
- Annual revenue
- 4,500,000
- Annual gross profit
- 1,900,000
- Full-time employees
- 26
- Part-time employees
- 4
- Ongoing contractors (FTE equivalent)
- 2
- Bottom-quartile cutoff (0 = industry default)
- 0
- Median (0 = industry default)
- 0
- Top-quartile cutoff (0 = industry default)
- 0
Example results
Revenue per employee is $150K (third quartile); reaching the top-quartile $250K would add $3M of revenue at today's 30 FTEs.
- Revenue per FTE
- $150,000
- Quartile
- Third quartile
- Revenue gap to top quartile
- $3,000,000
- Gross profit per FTE
- $63,333
- Gross profit gap to top quartile
- $1,266,667
- Revenue gap to median
- $1,200,000
- Total FTEs
- 30
- FTEs needed at top-quartile productivity
- 18
What stands out
$150,000 per FTE puts you in the third quartile
You are at 60% of the top-quartile cutoff ($250,000) and below the $190,000 median for home services / trades.
$3M of revenue gap to top quartile at current headcount
At your 42.2% gross margin that is about $1.3M of gross profit. Alternatively, today's revenue would be supported by 18 FTEs at top-quartile productivity, 12 fewer than now.
Gross profit per FTE is $63,333
This is what each person must cover in overhead and profit. It is a better productivity measure than revenue when margins differ from peers.
Next actions
- Freeze net new hiring until revenue per FTE climbs toward $190,000; let growth absorb existing capacity first.
- Map where hours go in your least productive team and automate or eliminate the top 2 low-value tasks.
- Test a price increase: at constant headcount, every 5% of price adds about $7,500 per FTE.
- Set a revenue-per-FTE target in your annual plan and make it a hiring gate.
Model assumptions & limitations
- Using illustrative quartile cutoffs for home services / trades: $140,000 / $190,000 / $250,000. These are not authoritative; verify against your trade association, peer group, or industry reports.
- FTE = full-time + 0.5 x part-time + ongoing contractor FTEs.
- Gross profit gap assumes your current gross margin holds on additional revenue.
- Revenue per employee varies widely with business model (e.g. subcontracting, product mix), so compare against true peers.