One of the problems that you frequently encounter is to evaluate the performance of your team, and to decide whether your staff generate sufficient income.
We asked the national statistics to see how much income per employee is created in the United Kingdom to aid you. You may determine the cost of employing extra people with these facts.
What is “Revenue per Employee”?
Revenue per employee is a simple computed statistic by dividing annual revenues by current employee numbers – employers/managers are also used in the article.
This is particularly relevant when comparing a firm with its competing competitors, since a company that wants to have the highest income per person is more productive.
How much revenue does the average UK business generate per employee?
UK companies earn an average revenue of £118 000 per employee.
While this is an intriguing figure for economists and politicians who praise the productivity of the UK, it is not particularly beneficial for most companies in the UK. The £118,000 is for all UK businesses, from the manufacture of steel and energy to local bars and libraries and all in between.
What about my sector?
While this information begins to address the issue, it doesn’t necessarily enable an enterprise owner to decide whether to take on another employee or to compare his firm with rivals in his industry.
We need delve more deeply into this topic and ask, in order to answer this question: how much is the income generated per employee in my industry, and how much might my firm make with another person to justify operating costs? Or, on the other hand, should the company search for operational efficiency before committing to another employee?
We collected data for 25 industries across the gamut from restaurants, pubs and software developers to online retailers, in our entire study. We divided the data into micro-enterprises with less than 10 workers and small enterprises with between 10 and 50.
How do you use this information?
Here at CBM Accounting we realize that excellent data can help you make the correct decisions for your company and you may just roll the dice without any information.
We work with our customers to guarantee that they can use current financial data on the cloud to provide the finest possible information on their business every day and wherever.
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