This ratio compares the dollar volume of sales against the total full time employee equivalent of people working in the business.
Use information from your business' annual profit and loss statement and your employee records for that year to input into the calculator.
For information on using this calculator see below.
You will need to consider whether people are employed on a full time or part time basis when using the calculator. For example, the number of people employed in a business could amount to 3.6 including 2 owners, one full time employee and one part time.
If you have part time employees, the calculator estimates the number of full time equivalents based on a 40 hour week.
The ratio provides a useful productivity measure. It can be used to assist monitor ongoing performance. It can also assist determine the level of sales that a business needs to generate when increasing staffing levels.
It is worth considering the role of employees when using the ratio. The degree of specialisation of employees tends to increase with larger businesses. Different employees will undertake varying roles such as sales, production, administration or management. Personnel directly involved in sales will tend to have a stronger influence on the ratio than those in other roles.
Ratios should be considered over a period of time (say three years), in order to identify trends in the performance of the business. You should seek professional advice when analysing or acting upon this ratio.
The calculation used to obtain the ratio is:
Sales per Employee =
No. of people employed (owners & employees)
NOTE: The calculator is provided for illustrative purposes only and the calculations are based on the accuracy of the information provided by you. The information about the calculators and the results of the calculations are necessarily general and are only intended as a guide. When deciding on what your business will do, many factors need to be considered, including your business' situation and financial position.
ANZ will not store the information provided in this calculator.