Revenue per Employee - by Ravi Patel

 

A useful macro measure for tracking productivity is Revenue per Employee.

 

Revenue per Employee can be tracked on a monthly basis by dividing the rolling 12-month revenues by the average number of employees during the month.

 

Monitoring the trend line demonstrates your efforts in increasing revenues per employee. More importantly, Entrepreneurs should compare the Revenue per Employee measure for their company to the standard in their industry. Is your company above average in your industry?

 

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