Revenue per Employee Model

Build a workforce-based revenue forecast

The task is to forecast Business Line A’s 2026 revenue from two employee groups. This personnel-capacity model uses a specific relationship: sum of each linked group’s average FTE × annual revenue per FTE. It is a workforce-based capacity forecast within the Revenue Model, with productivity entered explicitly rather than estimated automatically.

Set separate employee-group assumptions

Employee Group A opens with six FTE, hires two on July 1 and has annual revenue per FTE of EUR 200,000. Salary is EUR 60,000 per FTE, bonus 10%, burden 20% of salary plus bonus and one-time hiring cost EUR 3,000 per hire. Employee Group B has two FTE all year, revenue per FTE of EUR 150,000, salary EUR 50,000, bonus zero and burden 20%.

Both groups link to the same revenue line, with a separate revenue-per-FTE assumption for each relationship. There are no departures. The comparison case removes only Group A’s July hire. All opening balances, direct costs, other expenses, taxes, investment and working-capital inputs are zero; this is not a complete business budget.

Reconcile the hire’s partial-period revenue and cost

The July hire raises Group A’s closing FTE from six to eight, but average FTE is 6 + 2 × 184/365 = 7.0082. Its revenue is 1,401.64 in EUR thousands. Group B contributes 2 × 150 = 300, giving total revenue of 1,701.64.

Without the hire, Group A contributes 1,200 and total revenue is 1,500. The hire adds 201.64 this year, not the full-year 400 implied by two additional closing FTE. Group A personnel cost is 561.05, including 6 of hiring costs. Group B costs 120; together they cost 681.05.

Subtracting personnel cost gives EBITDA of 1,020.59. Compared with the no-hire case, personnel expense rises by 85.85 and EBITDA by 115.79. Those are conditional model outputs before any additional delivery or overhead costs.

Interpret productivity separately from staffing

The hiring date determines time-weighted FTE; the productivity assumption determines the revenue attributed to that time. Closing FTE describes the year-end team and must not replace average FTE in the annual relationship. Group A and B have different productivity and compensation, so an undifferentiated employee average would hide the mix.

Revenue per FTE is a supplied annual assumption. The model does not infer demand, utilization, billable hours, machine capacity or scheduling constraints. Its capacity interpretation is strictly workforce-based. The Hiring Ramp Model isolates timing and costs, while the Headcount Model covers the broader personnel setup.

Reproduce the workforce relationship

1. Download the synthetic employee-revenue file. Open the financial model and explicitly select Manage models → Import. It contains a full 2026 forecast, EUR and thousands, the two employee groups and Group A’s dated July hire. The current workspace has no personnel-event editor; the existing file importer preserves that schedule. The main CTA does not import it.

2. Switch to Advanced. Under Personnel → Model inspect Employee Groups A and B, FTE × Compensation, salary Amount and the compensation assumptions above. Expand Additional compensation & one-time costs to check average FTE and cost components. Leave the stored annual FTE targets unset so they do not override the dated schedule.

3. Under Revenue → Model inspect Business Line A, choose FTE × Revenue / FTE, and use Link employee group for A and B. Revenue / FTE for this line is 200 for A and 150 for B in the thousands display. These relationship amounts are distinct from each group’s salary. Compare the calculated contributions and total above.

Extend the line without overstating capacity

Use Bottom-Up Revenue Forecast to combine this employee-linked line with other revenue methods. Use the Employee Cost Calculator for isolated compensation and the Financial Operating Model for other expenses. Revenue per employee is not a guarantee of achievable sales or a workforce optimization recommendation. Displayed values are rounded; the engine uses unrounded day weights.