Plain-language questions
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KPI · HR
Personnel cost per FTE: formula and example.
Personnel cost per FTE is total personnel cost in a period divided by the average number of FTE. Personnel cost covers gross pay, holiday pay, employer contributions and pension. It shows what an average full-time position costs and helps with budgeting and comparing departments.
Personnel cost per FTE formula
Total personnel cost in the period ÷ average FTE in the period
Worked example
In 2025 Acme Groothandel had €8,960,000 in personnel costs with an average of 128 FTE. Personnel cost per FTE is €8,960,000 ÷ 128 = €70,000.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
A rising figure can come from pay rises, a different mix of roles, more overtime or higher contributions. Compare by department and with last year, and read it next to revenue per employee and the personnel cost ratio. A lower figure is not automatically better if it means fewer experienced people.
Pitfalls with personnel cost per FTE
- Dividing six months of cost by FTE without annualising and then comparing it with a full-year figure.
- Including contractors and agency staff in the cost but not in the FTE, or the other way round.
- Showing cost per FTE for a department of two, which makes individual salaries easy to work out.
SQL & DAX
Calculating personnel cost per FTE 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.
WITH monthly AS (
SELECT period_month, SUM(gross_cost) AS cost
FROM payroll
GROUP BY period_month
),
fte AS (
SELECT m.period_month, SUM(e.fte) AS fte
FROM monthly m
JOIN employees e ON e.hire_date <= m.period_month
AND (e.termination_date IS NULL OR e.termination_date > m.period_month)
GROUP BY m.period_month
)
SELECT date_trunc('year', m.period_month)::date AS year,
SUM(m.cost) AS personnel_cost,
ROUND(AVG(f.fte), 1) AS avg_fte,
ROUND(SUM(m.cost) / NULLIF(AVG(f.fte), 0), 0) AS cost_per_fte
FROM monthly m
JOIN fte f USING (period_month)
GROUP BY 1
ORDER BY 1;Avg FTE =
AVERAGEX (
VALUES ( 'Date'[YearMonth] ),
VAR d = CALCULATE ( MAX ( 'Date'[Date] ) )
RETURN SUMX ( FILTER ( ALL ( Employees ), Employees[HireDate] <= d && ( ISBLANK ( Employees[TerminationDate] ) || Employees[TerminationDate] > d ) ), Employees[FTE] )
)
Personnel Cost per FTE = DIVIDE ( SUM ( Payroll[GrossCost] ), [Avg FTE] )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 personnel cost per FTE?
Add up all personnel costs in the period, including employer contributions, holiday pay and pension. Divide by the average FTE over the same period. For an annual figure, use the average of the monthly FTE totals.
Which costs belong in personnel cost per FTE?
Gross pay, holiday pay, any bonuses, employer contributions and pension are always included. Overtime, allowances and travel expenses usually are too. Contractors are counted separately unless you also include their FTE.
How does it differ from the personnel cost ratio?
Personnel cost per FTE expresses cost per position; the personnel cost ratio expresses it as a percentage of revenue. The first says something about the price of labour, the second about how heavily it weighs on your results. Together they give a fuller picture.
Further reading
- KPI libraryHR KPIs: formulas and examplesHR KPIs cover staffing, absence, turnover and recruitment. This is sensitive data: show it only to people who are allowed to see it, and do not report on groups so small that individuals can be identified.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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