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Revenue per Employee Calculation Guide

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Eleazar P. Sanchez
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40 views1 page

Revenue per Employee Calculation Guide

Uploaded by

Eleazar P. Sanchez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Let us take another example where the senior management of the company wants to calculate the productivity of its

employees in terms of revenue


generated per employee. During 2018, the company generated $35.0 million as revenue and the company started the year with 200 employees
and ended the year with 220 employees. Calculate the revenue per employee for the company based on the given information.

Particulars Value
Revenue (Output) $35,000,000
Opening Employee Count 200
Closing Employee Count 220

Average No. of Employees (Input) is calculated using the formula given below
Average No. of Employees (Input) = (Opening Employee Count + Closing Employee Count) / 2

Average No. of Employees 210

Revenue per Employee (Productivity) is calculated using the formula given below
Productivity = Revenue (Output) / Average No. of Employees (Input)

Revenue per Employee $166,666.67

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