Revenue Per Employee Productivity

It is an easy indicator of productivity efficiency of an organization s personnel.

Revenue per employee productivity. The average revenue productivity measures the amount of revenue each resource unit produces on average. Revenue per employee is impacted by several factors. Revenue per day number of employees. Compare revenue per employee year over year for your hr leader.

It is a basic measure of the productivity of an economy industry or organization. Revenue per employee is calculated as total revenue divided by number of employees. Here are some thoughts why revenue per employee is the only metric that makes sense when viewing the performance of an hr leader. Scanning through facebook s annual report john finds that the number of employees at facebook is 35 587 and the company reports revenues of 55 838 million.

It helps as a measure of average financial productivity for each employee of the company. Revenue per employee also suggests that a company is using its. Total revenue number of units of resource. John s manager asks him to analyze the productivity of an average employee at facebook and instructs him to determine the revenue per employee for facebook as of december 31 2018.

Thus when you enter these 4 details it will calculate the following employee productivity for you. Revenue per employee calculates the number of sales generated by one employee or sales done by each employee. The rest is bs. Ideally a company wants the highest ratio of revenue per employee possible because a higher ratio indicates greater productivity.

Revenue per employee per day formula. For hourly productivity you need to enter 4 details. Revenue per employee calculate your employee s productivity calculate your employee s productivity using this free online financial calculator as this measure is very important to judge company s growth. This is one of the important measures of performance of employees of the company.

Revenue per week duration number of employees and working hours per day. Revenue per employee is an essential financial ratio calculated by dividing revenues generated for a specific period by the number of employees in a company. For example assume a business employs 10 staff members who produce 100 pairs of shoes. Did it go up or down.

You calculate the average revenue productivity using the following formula.