Revenue per Employee varies between markets with companies with low repetition activity having the highest costs and therefore the lowest revenue per employee figures. In contrast, companies that have high repetition and streamlined technological solutions have high revenue per employee figures.
Revenue per employee is a calculation of how much revenue is generated on average for each employee.
Understanding a companies revenue per employee is important for understanding how effectively a company is using its employees. A high revenue per employee indicates that the company is capitalising on its employees as an asset and achieving good sales rates in pre/after sales care and support.
Revenue per Employee varies between markets with companies with low repetition activity having the highest costs and therefore the lowest revenue per employee figures. In contrast, companies that have high repetition and streamlined technological solutions have high revenue per employee figures.
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The revenue per employee calculation is very simple. Start your calculation with the companies total revenue (typically gross revenue), divide the revenue by the total number of workers to provide the revenue per employee figure..
The revenue per employee formula is R / E = RPE