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Revenue per employee

What is revenue per employee?

Revenue per employee is a key metric that measures how much income a company generates for each employee. It helps assess how efficiently human resources are utilized within the organization.

To calculate revenue per employee, the total company revenue is divided by the number of employees.

A high revenue per employee often indicates strong productivity and effective work organization. However, this metric should not be viewed in isolation, as it varies by industry and other influencing factors.

Revenue per employee also helps HR professionals and management make decisions about resource allocation and assess employee contribution to the overall success of the company.

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