39 firms in the 2022 Anytime, Anywhere Work™ (ATAWW) Survey reported average net fees per FTE employee (as measured by full-time equivalents or FTEs) of $226,000 or more. This group represents the top 18% of the total participant pool when it comes to average net fees per FTE, which is determined by calculating the total net fees for the prior fiscal year divided by number of FTE employees (including partners, client-facing team members, and administrative/operational team members).
Why consider this metric? The theory is that the more revenue placed in the hands of each employee, the greater the leverage applied and the more profits a practice will earn. We were interested to see whether these firms with higher “profit potential” are also making more progress with their flex and remote initiatives. See the following chart indicating the questions where the Firms with Higher Net Revenue per FTE Employee were more progressive or unique from the rest of the survey set.
Exhibit: Firms with Higher Average Net Fees per FTE Employee Compared to All Respondents (5%+differential)
Learn more about the 2022 Anytime, Anywhere Work™ Survey here.