Plain-language questions
Ask for staff costs as a % of revenue per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.
KPI · Finance
Staff costs as a % of revenue: formula and example.
The staff cost ratio is total staff costs divided by revenue. Staff costs include gross salaries, employer social security contributions, pension contributions and often also contractors who work as part of day-to-day operations. The ratio shows how labour-intensive the business is and whether staff costs are keeping pace with revenue.
Staff costs as a % of revenue formula
Staff costs ÷ revenue × 100%
Worked example
In 2025 Acme Groothandel had €1,800,000 of staff costs on revenue of €12,000,000. The staff cost ratio is €1,800,000 ÷ €12,000,000 × 100% = 15%.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A falling ratio means revenue is growing faster than staff costs; a rising ratio means more people or higher pay are needed per euro of revenue. Pay rises push the ratio up automatically if prices are not adjusted. Compare it with previous years and budget, and across departments or sites; between sectors it varies widely.
Pitfalls with staff costs as a % of revenue
- Including contractors and agency staff in some periods and not in others.
- Booking holiday pay and bonuses only in the month they are paid instead of accruing them monthly, which makes monthly ratios swing.
- Comparing the ratio with businesses that outsource heavily, where labour costs sit in purchases rather than staff costs.
SQL & DAX
Calculating staff costs as a % of revenue in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
SELECT date_trunc('month', entry_date)::date AS month,
SUM(amount) FILTER (WHERE account_group = 'personnel') AS personnel_costs,
SUM(amount) FILTER (WHERE account_group = 'revenue') AS revenue,
ROUND(100.0 * SUM(amount) FILTER (WHERE account_group = 'personnel')
/ NULLIF(SUM(amount) FILTER (WHERE account_group = 'revenue'), 0), 1) AS personnel_cost_ratio_pct
FROM gl_entries
WHERE account_group IN ('personnel', 'revenue')
AND entry_date >= date_trunc('month', current_date) - interval '12 months'
GROUP BY 1
ORDER BY 1;Personnel Costs = CALCULATE(SUM(GL[Amount]), GL[AccountGroup] = "personnel")
Personnel Cost Ratio % = DIVIDE([Personnel Costs], CALCULATE(SUM(GL[Amount]), GL[AccountGroup] = "revenue"))In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate staff costs as a percentage of revenue?
Divide total staff costs by revenue for the same period and multiply by 100%. With €1,800,000 of staff costs on €12,000,000 of revenue, that is 15%. Include employer contributions and pension costs in staff costs.
What is the difference between the staff cost ratio and staff cost per FTE?
The staff cost ratio compares staff costs with revenue, staff cost per FTE compares them with the number of full-time equivalents. The first tells you about the relationship with income, the second about the average cost of an employee.
Should contractors be included in staff costs?
That depends on your definition, but for a fair picture you usually include contractors who work as part of day-to-day operations. Otherwise the ratio appears to fall when permanent staff are replaced by contractors. Either way, state which choice you make.
Further reading
- KPI libraryFinancial KPIs: formulas and examplesFinancial KPIs show how profitable, liquid and solvent an organisation is. The data usually comes from your accounting package or ERP: general ledger entries, invoices and open items.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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