Asset Utilisation measures
What is my operating revenue per employee? Overall investment returns are assessed using asset utilisation ratios. These ratios are good for understanding how well the company performs in generating returns from its activities.
Operating Revenue Per Employee
How do you establish revenue earned for each of your employees? Here, we measure the revenue earned from operations generated by each employee within your business. The number is recorded both for 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?
Revenue per employee is a must-have measure and shows you how productive your business is. Knowing this, It also indicates whether it is likely to be under or over-staffed. Look for changes over time using our time series graphs. Acceptable revenue per employee figures will vary by industry. For instance, the tech industry would look for at least $175,000 generated per employee. Jazoodle uses a figure of 175,000 as a benchmark.
How do we derive your Operating Revenue Per Employee?
Your company’s revenue earned from each employee is calculated by the following:
total operating revenue
Average number of employees
How Can I Improve my operating revenue per employee?
Your operating revenue per employee can be improved in a number of ways, including:
- Increase sales revenue
- Keep number of employees commensurate with operating conditions