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April 05, 2012



Great metric. Revenues are a more accurate reflection of employee contributions. Earnings relect more management decisions. We don't really expect employees, especially hourly, to cut costs and sacrifice revenues at the expense of earnings. What are they going to do (fire themselves, cut their wages and benefits or outsource a function)? Employees just need to just produce. Management should be more concerned with eliminating waste. Earnings can get complicated and can be a higher level concept.


I hear what you're saying but if you want a metric that's tied to earnings, would Profit per FTE be the better metric? The definition of earnings is profit, not revenue.


Hi Helen -

You could do that, but the revenue per employee already holds you biggest connection to the biggest connection - employing people - follow me? Also, growth companies may not have earnings yet, so revenue allows you to compare across companies in different industries and at different stages in their growth...

Thanks - KD

Evelyn Washington

All of this information is very good. If the employers were to have a meeting and show each employee their worth in the agency, do you think this would increase productivity. Instead of always calling the employees in for what they did wrong?

E. Washington

Payroll System

Yahoo is clearly reevaluating its human capital strategy. Marissa Mayer definitely has her work cut out for her.

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