People Revenue Metrics Outcome Efficiency

Revenue per Employee

Cross-reference

This metric is defined in Finance Metrics. People lists it here as a key outcome metric.

Revenue per Employee: Annual Recurring Revenue (ARR) divided by total headcount.

Formula

Revenue per Employee = ARR / Total employees

Benchmarks

Below $100K: Early stage or overstaffed
$100K-$200K: Growing
$200K-$300K: Efficient
Above $300K: Highly efficient

What It Tells You

How much recurring revenue the company carries per person, a rough measure of overall productivity.

Connected in the GASP relationship graph.

Upstream: what drives this

Employee Turnover Rate reduces Revenue per Employee (People)
ARR component of Revenue per Employee (Core)

Downstream: what this drives

Revenue per Employee measures Subscription (Entity)
Revenue per Employee measures Employee (Entity)

← Back to People metrics