How to Calculate Revenue Per Employee

Save

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.

References

  • Photo Credit calculator #5 image by Adam Borkowski from Fotolia.com
Promoted By Zergnet

Comments

You May Also Like

  • Contract vs. Employee Revenue in Canada

    In Canada, there has been lengthy discussion on the different definitions between contractual and employee-based job positions. Several court cases have resulted...

  • How to Calculate Marginal Revenue

    Marginal revenue is the revenue a business receives from selling one more unit of a product. Because some production costs are fixed...

  • How to Calculate Profit Sharing

    Profit-sharing plans can create an incentive for employees to work harder and more efficiently. To implement a profit-sharing plan, executive management or...

  • How to Calculate Sales Revenue

    Companies can calculate their sales revenue from a derived number based on the cost of a unit and the number of units...

  • How to Calculate Service Revenue

    The service revenues account records the service fees earned by a company during a period, which could be a month, a quarter...

  • How to Calculate Operating Incomes Per Employee

    A company's ability to efficiently use its resources to generate income is crucial for its success. You can measure how efficiently a...

  • How to Calculate Employee Efficiency

    Bad measurements of employee efficiency may be worse than no measurement. For example, if you measure your sales staff's efficiency by how...

  • Menu Layout & Restaurant Revenue

    Increasing restaurant revenue can be as simple as redesigning menu layouts to better highlight food choices. Design artistic menu layouts with tips...

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!