If you are looking for a productivity or effectiveness KPI, a sure place to start is revenue per employee (unless you are in the public sector).
- It is a straight forward calaculation
- It is easy for every employee to get their heads around
- It is a measure of scalability
- It is a crtical measure for long term success
- It triggers great conversations about the health and direction of the company
It has one primary weakness in that it is a lagging indicator.
Similar metrics to this are Revenue per Employee, Expense per Employee, Expense per Sale, Profit per Transaction, Profit per Customer.
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