Winning KPI

KPI for Measuring of Sales order by FTE (full time equivalent) posted in category Sales

WinningKPI - Sales - KPI for Measuring of Sales order by FTE (full time equivalent) posted in category Sales Oana Boteanu This indicator is for measuring the number of customer orders that are processed by full time employees per time period (usually week or month).

More details:
It is a very useful tool to determine and record the cost of workforce per order, as the Total FTE for a week will represent a total salary cost for the company (e.g. for a small company of 10 full time employees paid at approximately $250 a week, a Total FTE per week would mean $2500) .
It is in the company’s benefit to aim to maximise the number of sales orders per employee. A few measures can be put in place such as staff training or setting staff targets (e.g. 50 orders per week per employee).
This KPI can also be used as an indicator to determine the overall cost incurred by the company per sale.

Formula
Total number of sales orders / Total FTE
In our example above, if the Total sales order is 400, the formula goes as following:
400 sales orders/ 10 FTE where 10 FTE = $2500
1 sales order = $2500/400, hence 1 sales order = $6.25

KPI Units: Money

KPI Time Frame: update weekly or monthly

Posted by Oana Boteanu | Help to protect community: Flag for moderation

Useful KPI? Download KPI as a .BSC project or start a web-based KPI project.

Ideas suggested by WinningKPI community:

Here are comments:

KPI Expert I work for a call centre and this measure is used as an objective. Every week, employees are given a target of sales orders.
At a management level, the company has an ideal Sales order size by FTE KPI which is then delegated down into objectives to ensure that figure is met.
The call centre has 20 sales agents and 10 administrative and management staff (full time), so 30 FTE.
Weekly, on average a total of 300 deals are closed.
300/30 = 10 orders per FTE
However, there are only 30 sales agents, therefore the order size per sales FTE is 300/20 = 15
In order to keep this KPI high, the objective a week per sales FTE (sales member of staff) is to process a minimum of 15 orders.

Oana Boteanu | + | September 6, 2012 at 8:10 am

×

Have something to add? Have some more thoughts? Help others and earn 5 credits!

×

Sign in to comment Please, register (there is a button 'Become a member of WinningKPI community') in the right sidebar or sign in to leave comments. It is free and more - you will have scores for each comment you post.

Articles in Sales category:

Relevant articles:

Become a member of WinningKPI community

Manage your KPIs with BSC Designer software

Random KPI requests: