learn.howToCalculate
learn.whatIsHeading
Measures company efficiency by dividing total revenue by headcount. Benchmarks productivity and indicates scaling effectiveness.
ଷ୍ଟେପ୍-ଷ୍ଟେପ୍ ଗାଇଡ୍ |
- 1Sum annual revenue (or ARR × 12)
- 2Count total employees including part-time converted to FTE
- 3Divide: revenue ÷ FTE headcount
- 4Compare to industry benchmarks
ସମାଧାନ ହୋଇଥିବା ଉଦାହରଣ
ଇନପୁଟ୍
$1M, 10 emp
ଫଳ
$100k/emp
ଏଡ଼ାଇବା ଯୋଗ୍ୟ ସାଧାରଣ ଭୁଲ
- ✕Not converting part-time employees to FTE equivalents
- ✕Including non-revenue generating departments undervalues their contribution
ବାରମ୍ବାର ଜିଜ୍ଞାସା
What's healthy revenue per employee?
Varies by industry; SaaS averages $150-300K, manufacturing $200-400K, professional services $200-350K.
How can I improve this metric?
Increase revenue through sales and pricing, improve margins, and optimize team structure.
learn.ctaText
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