Importance Of Revenue Per Employee

Revenue per employee example.

Importance of revenue per employee. Generally a higher rpe typically indicates a more productive and efficient. Fiat on the other hand makes around 538 122 per employee. The result is 160 256 41. Importance of revenue per employee.

Compare revenue per employee year over year for your hr leader. That s all you need to know. In general the top tech company s revenue per employee is more than the manufacturing companies revenue per employee. As such we have 50 000 000 312.

In 2005 they had a revenue of 50 000 000 and a number of 312 employees. For many companies their largest expenses are salaries and benefits for employees. By using the information above into the formula we can determine the firm s revenue per employee as follows. Here are some thoughts why revenue per employee is the only metric that makes sense when viewing the performance of an hr leader.

Did it go up or down. Revenue of 1 1 million per employee. We note that ferrari has the highest sales per employee with approx. Revenue per employee determines how effectively a company is operating in regards to its employees.

We must divide the total revenue by the number of employees. Let s take for example the company xyz. Revenue per employee is an important ratio that roughly measures how much money each employee generates for the company. Example 4 banking industry.

The rest is bs. Thus every employee at company abc contributed approximately 160 256 in revenue for 2014. In addition the workforce is what drives business success.