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September 28, 2012

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Tasinquefield

Kris, I have to agree with you. I understand wanting to get a more "descriptive" number but in reality, there is no great way of measuring the output of employees. In reality, the only way is through revenue - more engaged employees, who are part of a great performance management program - will produce more revenue. My firm's revenue is billable hours - for us, there is a 100% direct link between engagement and productivity and revenue.

Persis Swift

Hey Kris,

We completely agree! Revenue per employee is the most effective way to measure HR effectiveness. RPE can justify your next HR initiative! We recently wrote a post on the topic. Please check it out: http://blog.capital.org/the-best-metric-for-hr-effectiveness-revenue-per-employee/

Barbara Moberg

How about the employee who works for a non profit organization?

Sean Conrad

Great post Kris.

@Barbara - In a non-profit there is usually some objective measure that equates to revenue. For example http://pedaids.org/ measures the various services or interventions per employee. The local food bank we (@HalogenSoftware) support http://ottawafoodbank.ca/ measures overall food delivered per employee.

It's not quite as simple as straight $ revenue but it's normally something the non-profit is tracking anyway to determine overall results.

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