Average Revenue per Hour Worked

Why it’s important

A firm’s workforce is an asset. Managing its time effectively is crucial in order to maximise profitability.┬áThis metric breaks down how much revenue is actually being generated on average for each hour your workforce is committed to a project or job. Viewing Revenue broken down in this way can give a truer sense of job profitability and provide useful data to be fed back into pricing and business strategy. Jobs which appear to generate greater revenue for the firm may be exposed as less rewarding due to the time cost involved, whilst smaller projects which require less of a time commitment may actually provide a more lucrative opportunity for the firm.

Making the KPI

Step One

To calculate your Average Revenue per Hour worked, you will need to know:

  1. Revenue per Project or Job
  2. Hours worked on the Project or Job

Revenue per Project is a financial metric which can be pulled into FUTRLI directly from your accountancy platform of choice provided you are using Tracking or distinct nominal codes. If not, this data can be imported into FUTRLI via CSV, along with the Hours which have been worked on the task.

Step Two

Once you have all of your data in FUTRLI, you can calculate Average Revenue per Hour Worked, by dividing the Revenue which has been generated on the job by the number of hours which were worked upon it:

Average Revenue per Hour Worked Formula

Step Three

Simply repeat the calculation for as many jobs as you wish to include – and then enjoy the results!

Average Revenue per Hour Worked

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