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Revenue Per Employee
Total revenue divided by number of employees, measuring workforce productivity and operational efficiency.
Formula
Revenue Per Employee = Total Annual Revenue / Average Number of Employees
Definition
What is Revenue Per Employee?
This metric shows how much revenue each employee generates on average. It's a proxy for workforce productivity and can reveal overstaffing or operational inefficiency.
Industry Benchmarks
Tech companies often achieve $200K-$500K+ per employee. SaaS companies at scale target $150K-$300K. Professional services run $100K-$200K. Manufacturing varies widely.
Using This Metric
Compare against industry peers and track trends over time. Declining revenue per employee may signal efficiency problems. Rising metrics suggest productivity gains or automation benefits.
Example
Growing SaaS company:
- Annual Revenue: $4,000,000
- Employees: 25
Revenue Per Employee = $4M / 25 = $160,000
After automation investment next year:
- Revenue: $5,500,000
- Employees: 28
New RPE = $5.5M / 28 = $196,428
Efficiency improved 23% while still growing the team.
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