Revenue per Employee
Total revenue divided by total headcount, a measure of workforce productivity
What is Revenue per Employee?
Revenue per employee is the average revenue generated for each person in the organisation. It gives a broad view of how productively the workforce is used.
It is a simple, widely used productivity measure, best used to track change over time and to compare with similar businesses.
How this KPI is measured
- Function
- Human Resources
- Sub-function
- Workforce Planning
- Industry
- All Industries
- Type
- Lagging
- Impact
- Efficiency
- Unit
- $
- Measurement frequency
- Quarterly / Annual
- Formula
- Total revenue / Average headcount
How to calculate it
Divide total revenue by average headcount.
For example, if revenue was 60,000,000 and average headcount was 400, revenue per employee is 150,000.
Business models differ widely, so compare with similar companies, and decide whether to use full-time equivalents to account for part-time staff.
Where it is used
Tracking productivity
See how output per person changes.
Benchmarking
Compare with peers.
Planning headcount
Link hiring to growth.
How to improve it
Tips and common mistakes
- It ignores profit and the mix of roles.
- Outsourcing changes the figure without changing productivity.
- Use full-time equivalents where staff work part time.
More Human Resources kpi library
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