Contractor Finance Glossary
What is Revenue per Technician?
Definition reviewed .
Also called: revenue per tech, revenue per field employee
Revenue per technician divides a stated revenue scope for a period by average field-technician FTE for the same period. It measures revenue volume per unit of field capacity, not profit or productivity on its own.
Revenue per technician is useful when you track field capacity on a consistent basis. A higher ratio can reflect prices, material pass-through, subcontracted work or staff departures instead of productivity. Compare it with billed hours and gross profit per labor hour.
Revenue is not margin. Report subcontract pass-through separately or exclude it consistently, and specify whether helpers and apprentices are included. Seasonal staffing and part-time work need an average FTE measure, not just the headcount on the last day.
How it is calculated
Revenue per technician = eligible revenue for the period divided by average field-technician FTE for that same period. One consistent FTE convention is included-role paid hours divided by standard full-time hours for the period. State included roles and revenue scope before comparison.
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