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Average Revenue Per Employee (ARPE)

Is the ratio of Total Revenue of the Service Provider divided by the Total Number of Employees yielding a KPI that assist an organization in the measure of the cost of supporting a given set of services.

Details

Unit: Money

Direction: Maximize

Unit: USD$

Time range: Per year

Benchmark Results


This KPI is most used for:
Cost Leadership

Comments

  1. STEVE PAINE

    Michael;

    I wonder if we could get a more accurate measure of employee revenue contribution if we were to give “weighted” values to activities that directly impact new revenues (i.e. sales generated by sales staff) and perhaps a formula for non-sales staff’s that directly “prevent-revenue-loss” similar to the way Major League Baseball has formulas for both offensive and defensive skills in their relation to “runs created” & runs prevented, or saved"?

  2. Samer Naffa

    Please note I put 1000,000 $ for target value but it came out as 1000 !

  3. John H.

    This can be a useful metric but must be viewed in conjunction with others such as density, terrain, customer demographics etc

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