Managing labor cost
Автор: Kpi Bookkeeping Tips
Загружено: 2019-11-03
Просмотров: 9
Описание:
Labor cost: Below are some ratios or averages to help you get a better idea of productivity over revenue.
Revenue per employee:
Revenue / # of employees. This gives an idea of how much revenue is generated per employee. Helpful if the majority of your workforce is salaried.
Labor Cost %
Cost of labor / Revenue. This gives you a percentage of dollars spent on labor based on revenue. Helpful if you have a fast-paced industry and a large hourly workforce.
Employee Turnover rate:
Employees that left / Average number of Employees
US average is 12%-15 %.
Don't forget to use the same time periods for each factor of the equation.
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