GlossaryRevenue per employee

Revenue per employee

Revenue per employee divides a company's by its headcount, showing how much each employee generates on average.

The formula is: / Number of employees

It's a rough measure of operating leverage and business model efficiency rather than a precise productivity score, since it says nothing about how that was actually earned. A software or ad-tech company with a highly automated platform can post a very high revenue per employee, while a labor-intensive business like retail or staffing will naturally post a much lower one, that difference reflects the business model, not necessarily which company is better run. It's most useful compared against similar companies in the same industry, or against the same company's own figure over time, rather than as a standalone number.