Maximising Revenue Per Employee

• Published date: 25 August 2023
• Law Firm: Old Mill
• Author: Ashley Harvey

At Old Mill, we understand that your staff can make or break the success of your business. As trusted advisers, we believe that keeping your people informed, involved, interested, and inspired is crucial. However, we also recognise that achieving these goals can be challenging, especially for business owners who lack soft skills training and are pressed for time.

That's why we want to introduce you to a Key Performance Indicator that can significantly impact your business's performance: Revenue per Employee.

This metric serves as a reliable indicator of productivity and resource utilisation. While the optimal revenue per employee may vary across industries and business stages, a higher figure generally suggests greater efficiency and profitability.

To truly understand the potential of your business, it's important to compare your revenue per employee with that of your direct competitors. This allows you to gain insights into your industry's labour demands and make informed decisions accordingly. Comparing businesses with different operational models, such as online retailers versus brick-and-mortar stores, requires careful consideration of factors like physical locations and staff requirements.

To help you...