How to Calculate Revenue Per Employee

Save
Calculating revenue per employee shows how effectively a company uses its employees.
Calculating revenue per employee shows how effectively a company uses its employees. (Image: calculator #5 image by Adam Borkowski from Fotolia.com)

Revenue per employee is an internal management function to determine the profitability of each employee on average. This result does not give an accurate representation an individual's earnings for the company but offers an average of earnings spread out to all employees. This calculation can be specialized to compare employee segments such as sales revenue per sales employee.

Determine the number of employees at the firm. For example, Company A's records show it has 100 employees.

Determine the business revenue using the company's financial statement. For example, Company A had $500,000 in revenue this year.

Divide the amount of revenue by the number of employees. In the example, $500,000 divided by 100 employees equals $5,000 of revenue per employee.

Related Searches

References

Promoted By Zergnet

Comments

You May Also Like

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!