Why Sales per employee ratio important for your Human resource management?

Man, material & machine these three are very key elements for an organization and most expensive part. So good management is required to ensure maximum profitability. In this article you will learn how you will determine your staff’s efficacy. There is ratio called Sales per Employee ratio in financial management. This ratio will indicate how your workforce are performing comparing to other origination from same industry.

For example

ABC RADIO BANGLADESH
Sales $10000
Number of employee 100
So sales per employee = $10000/100= $100

Oklahoma RADIO Inc.
Sales $10000
Number of employee 10
So sales per employee = $10000/100= $1000

how to calculate sales per employee ratio
Its clearly showing Oklahoma RADIO Inc. sales per employee is greater than ABC radio Bangladesh. It means Oklahoma radio inc has better employee management system which is very important to reflect positive impact on bottom line.
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