There's no need to be concerned if you are unable to calculate the new faculty member's revenue per employee because this free Revenue per Employee Calculator, can assist you. All you have to do is enter the revenue (R) and the number of employees (E) details, and you will obtain the needed revenue per employee.
Revenue per Employee can be defined as the average amount of revenue produced by each employee for an organization.
Why should HR Measure Revenue per Employee Ratio?
For a company to find effective uses for its employees, it is important to understand the company's revenue per employee. When a company has high revenue per employee, that is an indication that they have an effective staffing structure as well as achieving its sales targets efficiently.
Revenue per Employee is a very simple calculation. Divide your total company revenue by the number of employees you have & you will get the answer as revenue per employee.
RPE = R / E
RPE is the Revenue per Employee
R is the total revenue of your company
E is the total number of staff.
Begin by utilizing a few more calculators, then visit Arithmetic Calculator for reading computations and equations for a variety of themes.
A big IT firm in Silicon Valley has yearly revenue of 60 billion dollars & has 154000 working employees. Calculate the RPE of a company.
Here, revenue of a company, R = 60 billion = 60,000,000,000
Total number of employees, E = 154,000
So, using the formula, we get,
RPE = R / E
= (60,000,000,000) / (154,000)
This IT Company earns revenue of 389,610.38 dollars per employee.
1. How much revenue should a company make per employee?
As calculated, usually an average small business generates revenue of $100,000 per employee, while for the large companies it gets closer to $200,000.
2. Is revenue per employee a good metric?
The revenue per employee is a very helpful metric while making the comparison of revenue per employee year-on-year. This metric provides a rough idea of the money generated per individual working at an organisation.
3. What is the use of the revenue per employee ratio?
The revenue per employee ratio is very useful in determining the generated revenue per employee working at a company.
4. What is the average revenue per FTE?
It has been found that at the median, each year several companies are bringing the revenue of $322,835 as a revenue per employee.