Revenue per Employee
What is the employee efficiency in terms of revenues generated?
Revenue per Employee (also called Sales per Employee) is an important financial ratio that measures the revenue generated by each employee of the company on average in a specified period. It equals the company's total revenue divided by the average number of employees for the period.
Revenue per employee is especially relevant for software companies because revenue generation is predominantly based on human capital.
For the Revenue per Employee ratio to be helpful, it should be used when comparing companies in the same industry.
A higher ratio indicates greater productivity which contributes to the business growth and profitability of the company. Is your workforce organized most efficiently? Maybe it is time to break hierarchies and find self-organizing teams more productive.