Tuesday, May 24, 2011

Salary per Employee Compared to Revenue per Employee - a Performance Measurement

The graph below was created using Google’s graph tools.

The horizontal bar graph shows, for 11 business sectors, the average sales per employee and the average revenue per employee for 2007. The amounts were computed by dividing the total employees into the total salaries and then into the total revenues for each business sector.

The comparison of the two results for each business sector shows how much more revenue is generated per employee compared to the salary paid by the business sector. Businesses that have earned more revenues on a per employee basis compared to the salary per employee could be thought of as achieving a better return on an important asset – human capital.

A relative comparison between the business sectors might be the number obtained by dividing the revenues per employee by the salary per employee to give a multiplier number (a multiplier effect). This number represents how much a business sector is generating revenues per employee compared to other sectors.

The multiplier numbers are shown in the graph’s legend and range from 2.6 for the professional & technical services business sector to 19.9 for the wholesale trade sector. The average multiplier is 6.6, and four business sectors exceed the average: finance & insurance (7.4); manufacturing (8.5); retail trade (10.4); and wholesale trade (19.9).

Companies might compare their multiplier number to numbers shown on the graph to gauge how well the company is doing compared to other companies in their sector.

The graph is based on US Census Bureau data. This data can be seen by clicking here, and then the business sector links.

Salary per Employee Compared to Revenue per Employee for 11 Business Sectors


  1. Salary Expectation is the leading partner that specializes in International salary calculator, has designed a first of its kind Cost of living calculator for expatriates. This unique calculator empowers the expatriates to access the cost of living information to get a detailed insight of the prevailing indices across 93 countries. What does one all need if he has an access to the information on the prices of the basic necessities from bread to 2BR apartments. Sounds great, isn’t it ? This salary calculator comes as a boon for employers as well as employees.

  2. Salary Expectation brings you the unique Expatriate salary calculator specifically designed for expats. Compare the prices of everyday commodities to have a lucid cost of living. Don’t miss on the opportunity to work in Spain. Managing finances for expats is never easy.

  3. Employees also can exercise some commandments to bag a best deal across the table. Though, I won’t say that there are some special standards or a unique skill set is required for Salary negotiation but understanding your needs and the prospective employer make the difference.

  4. The inputs of the comparative report is used by many gigantic employers, business travelers, households for gauging the ‘’livability’’ factor. Expats are extensively benefited with International salary calculator that assists them with the individual prices of basic necessities like bread, rice, coffee, milk, travel, insurance, clothing, and numerous others; it further helps to manage their finances.