When it comes to some of the most valuable companies in the world, there are often several factors that make them stand out from the rest. Among the most important is high workforce productivity. One interesting metric that illustrates workforce productivity is revenue per employee. Exceedingly high revenue per employee signals two key attributes of a large business that allow for strong workforce productivity: scalability and strong management.
Scalability means a business can increase the revenue and profit it generates disproportionately to an increase in headcount and other costs. This is how companies drive higher margins. Effective use of technology and products that are strong in comparison to competitors can help drive scale. High revenue per employee shows that managers are using their staff well. They are placing them in roles that maximize their skills and productivity. As employees maximize their productivity, they also generate more revenue.
