Revenue Per Employee
Categories: Metrics
Interesting calculation. You have 100,000 employees and $50 billion in revenues. Wow, that's a lot of revenue per brain: $50 billion divided by 100,000 is $500,000. Probably a software company. Probably rhymes with Shmoogle. The metric for a paper and pulp company would probably be something more like $20 billion in revenues with half a million employees...to get RPE of $40,000.
Why does this matter? Well, if the ratio is so low, you can't pay your employees much. If you buy the notion that "you get what you pay for in life," then the quality of talent you're getting at a paper and pulp company is vastly less than what you're getting at a fewest-clicks-to-porn and content-theft search engine company.
