How to calculate it honestly
- Use full-time equivalents, not headcount, and include working owners.
- Count part-time and seasonal staff as fractions of a year.
- State whether subcontractors are included — and stay consistent.
- Report two figures: revenue per field FTE and revenue per administrative FTE.
Why cross-company benchmarks mislead
A company that subcontracts installation can post a ratio several times higher than a company that self-performs the same work, with identical margins. Ticket size, trade and revenue mix move it just as far. Comparing your number to someone else's usually produces a bad decision.
Your own trend line over eight quarters is the version worth acting on.
The pairing that actually indicates leverage
Track revenue per administrative FTE next to administrative hours per completed job. When revenue per administrative FTE rises while hours per job fall, the system is carrying more of the work. When the ratio rises while hours per job hold steady, you are simply asking people to absorb more — which is temporary, and it shows up later in errors and turnover.
Capacity planning from the ratio
- Project volume for the next two quarters, not the next month.
- Convert projected volume into administrative hours using your current rate.
- Compare to available hours; the gap is the real hiring question.
- Re-check after any system change, because the rate should have moved.