Revenue Per Employee

The metric behind workforce architecture. How to calculate it, what it does and does not tell you, and how to move it without cutting headcount.

What is revenue per employee?

How to calculate it, what counts as an employee, and the three things the number cannot tell you on its own.

How do I improve revenue per employee?

Why cutting headcount is the worst available lever, and the four that actually work. Written for teams that want the ratio to improve by growing the numerator.

What is a good revenue per employee benchmark?

Published medians for private SaaS, public software, and big tech, what the number means at each stage, and how much an employee should generate relative to what they cost.

What is a good revenue per employee for a small business?

Ranges by business model rather than a meaningless average, how employee count and revenue relate, how to calculate it from your own books, and what to do when it falls.