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Professional Services Metrics
The most important Professional Services metrics and KPIs. Learn about what metrics and KPIs are best for you and contribute your own.
Billable Utilisation
In an hour-based agency, the billable utilisation serves as a crucial metric, representing the percentage of billable hours employees spend on billable client projects. A higher billable utilisation indicates optimal efficiency and resource allocation, while a lower rate may suggest under-utilisation or potential areas for workflow improvement.
Payroll to Revenue Ratio
Payroll to Revenue Ratio, frequently referred to as Salary to Revenue Ratio, is a productivity metric that measures how effective a business is at utilizing its labour costs to produce revenue. As with any ratio, it's always important to understand both the numerator and the denominator and how changes to either will impact the number.
Profit per Employee
Profit per Employee is a measure of Net Income for the past twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Because labour needs differ across sectors, this ratio is often used to compare companies within the same industry.
Revenue per Employee
Revenue per Employee is a measure of the total Revenue for the last twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Also known as Revenue to Employee Ratio, this ratio is among the most universally applicable and is often used to compare companies within the same industry.