{
  "version": "1.13.0",
  "releasedAt": "2026-06-25",
  "kpi": {
    "rogueId": "hr.arr_per_fte",
    "slug": "arr_per_fte",
    "domain": "hr",
    "defaultLabel": "ARR per FTE",
    "description": "Annual Recurring Revenue divided by total FTE-equivalent workforce — the canonical SaaS workforce-productivity ratio anchored to the SaaS Capital Annual Survey methodology (revenue per employee benchmarks). A high-signal denominator for \"are we over- or under-staffed for our revenue scale?\" Common pitfall: choosing different ARR conventions (ending vs average, GAAP-reconciled vs raw) without locking in a board-level standard. Best practice is to pair this with `sales.arr` so the numerator is unambiguous and to disclose whether contractors are included in the FTE denominator.",
    "fieldType": "currency",
    "unit": null,
    "maturity": "general",
    "suggestedForStages": [
      "seriesA",
      "seriesB",
      "seriesC",
      "public"
    ],
    "defaultOwningFunctions": [
      "HR",
      "Finance"
    ],
    "stageRelevance": {
      "seriesA": "core",
      "seriesB": "core",
      "seriesC": "core",
      "public": "core"
    },
    "definitionSource": {
      "tier": "published",
      "sourceName": "SaaS Capital Annual Survey 2025 (14th Annual)",
      "sourceUrl": "https://www.saas-capital.com/blog-posts/revenue-per-employee-benchmarks-for-private-saas-companies/",
      "sectionRef": "Revenue per Employee",
      "publicationDate": "2025-06-01",
      "attributionNotice": null,
      "authorityLevel": "industry-benchmark"
    },
    "benchmark": {
      "p25": 100000,
      "median": 130000,
      "p75": 175000,
      "unit": "$",
      "sourceName": "SaaS Capital Annual Survey 2025 (14th Annual)",
      "sourceYear": "2025",
      "higherIsBetter": true
    },
    "formula": "ARR per FTE = `sales.arr` / `hr.total_headcount` (or FTE-equivalent including contractor adjustment from `hr.fte_metrics`). Document the denominator convention in board materials. Per SaaS Capital Annual Survey 2025 methodology (Revenue per Employee).",
    "whyItMatters": "Investors use this as a quick scalability and operating-leverage proxy — companies with higher ARR/FTE at a given scale typically command premium multiples. Internally, the metric anchors hiring-plan discipline: does each net new FTE earn its keep?",
    "interpretationGuidance": "SaaS Capital Annual Survey 2025 (§Revenue per Employee) reports private SaaS medians clustering in the $150K–$250K range, with top quartile $250K+ and bottom quartile under $150K (verify exact figures against the cited report — distributions vary by ARR band). Sub-$100K sustained at Series B+ is a board-level efficiency conversation. Reads should be paired with stage and growth rate — high-growth-stage companies tolerate lower ratios for a window in exchange for growth.",
    "relatedKpiIds": [
      "sales.arr",
      "hr.total_headcount",
      "hr.fte_metrics",
      "hr.payroll_run_rate",
      "operations.rule_of_40"
    ],
    "metricBasis": {
      "timeBasis": "point_in_time",
      "moneyBasis": "contracted_arr",
      "production": "computed"
    }
  }
}