Asset Utilisation measures
What is my net profit per employee? Asset utilisation ratios are used to measure the return on the labour and capital employed in your business. Thus, company efficiencies are measured using asset utilisation KPIs.
Net profit per employee
How do you measure the value generated by each of your employees? The amount of profit generated by each employee within your business is a great of doing this, and an indicator of efficiency. In Jazoodle, we assess both the financial year as well as on an individual monthly basis. The number of employees is recorded within the Jazoodle application, and in the “Employee” section.
What does it mean?
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.
How do we derive your Net Profitability Per Capita?
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
How Can I Improve my net profit per employee?
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
Video: employee efficiency measures
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