The amount of total net profit earned by each employee in your business. This is another measure as to how efficient your business is running. Again, check this over time and assess changes to your underlying business

Check your net profit per employee with Jazoodle now.

Definition used:

Your company’s profit generated from each member of staff is calculated by the following:

total net profit

divided by

Average number of employees

Your employee profitability can be improved in a number of ways, including:

• Improve sales revenues from profitable product lines
• Reduce internal process inefficiencies
• Negotiate more favourable direct goods supplies
• Reduce non productive overheads
• Ensure your expenses are managed effectively
• Keep number of employees commensurate with operating conditions