Revenue per Employee

Total revenue divided by total headcount. A crude but durable efficiency benchmark.

What it is useful for

Tracking your own trajectory over time. Rising revenue per employee means the business is converting people into revenue more efficiently; falling means the opposite, regardless of what growth looks like.

Weak for cross-company comparison

It is heavily affected by outsourcing, contractor use and business model. Two companies with identical figures can have very different economics.

RELATED TERMS

Burn Multiple

Net cash burned divided by net new ARR added — how much cash is consumed to produce a unit of recurring revenue.

Gross Margin

Revenue minus cost of goods sold, as a percentage of revenue. Whether the business model scales.

Revenue per Rep

Revenue produced divided by the number of quota-carrying sellers. A productivity measure and a planning input.

Learn how to apply this: RevOps 101: Revenue Operations Foundations

Definitions are the vocabulary. The courses are where you learn to operate it, with the interactive audit tools.

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