What is Revenue Per Employee?
The Revenue Per Employee refers to the average amount of revenue generated by employees.
Tracking labor costs is important, as they are often the highest non-inventory cost for a warehouse. Each employee will generate revenue through activities that keep the other KPIs where they need to be. That revenue should exceed the total amount that employee is paid (including benefits). If revenue per employee drops too low, it means your overall warehouse efficiency is at dangerous levels.
How Do You Calculate The Revenue Per Employee?
Revenue per employee is calculated by dividing a firm’s revenue on a timeline by its total number of workers in the same timeline.
Revenue Per Employee: Revenue Generated in a Time Period / Number of Employees in The Same Time Period.