Definition
Total revenue divided by the total number of full-time employees, a broader efficiency measure not limited to recurring revenue.
Formula
Total revenue / Total full-time employee count
How to measure
Divide total revenue for a trailing period by the average headcount over that same period.
Why track it
This metric is a simple, comparable proxy for organizational efficiency and productivity across company stages and business models.
Example
A company generating $15 million in annual revenue with 50 employees reports $300,000 revenue per employee.
FAQ
- What is Revenue Per Employee?
- Total revenue divided by the total number of full-time employees, a broader efficiency measure not limited to recurring revenue.
- How do you calculate Revenue Per Employee?
- Total revenue / Total full-time employee count
- Why track Revenue Per Employee?
- This metric is a simple, comparable proxy for organizational efficiency and productivity across company stages and business models.