How it’s calculated
Revenue Per Employee is calculated as:
Revenue Per Employee = Total Revenue / Total Full Time Equivalent Employee
See here for explanation of Full Time Equivalent Benchmark Calculation
How it’s used
Revenue per employee is an important financial benchmark because it aids in determining the relative average financial productivity of each worker within a company. It is important to note that because labour intensity varies between different occupations, the average revenue per person differs considerably between industries. For this reason, revenue per person benchmarking comparisons are most effective within the same industry.
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