sales-per-employee ratio

sales-per-employee ratio

a measure of a firm's sales/size relation, that expresses the firm's SALES REVENUE as a ratio of its size measured in terms of number of employees. Where a company employs a high proportion of part-time workers, employee numbers may need to be adjusted to full-time equivalent numbers to assist comparability. Alternatively sales may be expressed as a proportion of total employee remuneration.

It is useful to compare sales per employee in a firm with the company's average employee remuneration.

References in periodicals archive ?
He has also doubled the company's sales-per-employee ratio.
Cisco reports an 18% increase in its corporate sales-per-employee ratio as a result of investments in Web support programs.
Meanwhile, the median sales-per-employee ratio for Soft*letter 100 companies as a group has gained just 18%, from $144,008 in 1992 to a current level of $169,430.
And our Soft-letter 100 data supports this theory, at least in part: The 25 largest Soft-letter 100 companies achieved a median sales-per-employee ratio that's almost double the ratio for the 25 smallest firms on the list.
The highest sales-per-employee ratios show up among Soft-letter 100 companies with 100%+ growth; the lowest productivity rates appear among low-growth (or negative growth) firms, typically in older market segments.
582 billion in calendar 1991 revenue and employed 39,063 people, equal to an average sales-per-employee ratio of $194,085.
For better or worse, sales-per-employee ratios seem to be driving more high-level management decisions than ever before.
Like profitability and sales-per-employee ratios, the R&D effectiveness ratio is primarily a company-wide metric.
letter 100 data on growth rates and sales-per-employee ratios (Soft-letter, 4/7/92), a friend of ours posed an intriguing question: Do the numbers suggest that high growth and high productivity are mutually exclusive?
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