Revenue per Employee

Revenue per Employee is considered an indicator of management efficiency.  Revenue per employee looks at the ratio of sales to the number of employees required at that level of sales.  Revenues per employee depend of the industry of a company, so comparison should only be made between similar companies.

The calculation of revenues per employee is:

Revenues / Number of Employees

When making a comparison between two companies, the company with the higher value for revenues per employee will be more efficient or productive.