Revenue per employee

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

The formula is:

/

It's a rough measure of labor efficiency rather than a precise productivity score, since it says nothing about how that was 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 , or against the same company's own figure over time, rather than as a standalone number.

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