Measuring Marketing

Chapter 86 Sales/Profits Per Employee

Measurement Need

Evaluating the financial contribution (sales!) generated by each employee is an important productivity measure.

Solutioni

This is a measure of financial performance on an individual employee basis:

$SPPE=\frac{SorP}{E}$

Where

SPPE = sales/profits per employee

S = total sales

P = total profits

E = total number of full-time employees

Let’s assume a marketer’s product line has $60 million in sales and $6 million in profits and that there are 600 full-time employees. The sales per employee is therefore $100,000, calculated as follows:

$\begin{array}{l}SPPE=\frac{\$60,000,000}{600}\\ =\$100,000\end{array}$

Its profits per employee are:

$\begin{array}{l}SPPE=\frac{\$6,000,000}{600}\\ =\$10,000\end{array}$

Impact ...