The Revenue per Employee metric is calculated by dividing the total revenue of the organization by the number of full-time equivalent (FTE) employees. This calculation results in a figure that represents the average revenue generated by each employee in the business. It provides a simple yet powerful insight into the productivity and efficiency of the workforce, staffing levels and use of systems and technology.

Revenue per Employee is a crucial metric for organizations as it measures the efficiency and productivity of their staff. It gives an indication of how effectively the business is utilizing its human resources to generate revenue.

A higher Revenue per Employee ratio suggests more efficient use of labour, potentially reflecting better management practices, higher skill levels, and effective use of technology. It also helps in benchmarking the organization's performance against industry standards and competitors.

A strategy to Improve Revenue per Employee is Employee Training and Development: Invest in training programs to enhance employee skills and efficiency.