February 2018

Tracking sales per employee as a metric for measuring productivity

It pays to be lean in mean times. It pays to be lean in good times, for that matter. But how lean? Companies are slashing head counts – about 572,000 job cuts were announced since January 2012, according to Challenger, Gray & Christmas, And now they’re hiring again like crazy…So let’s look at some practices that were common just a few years ago so that, when needed, we’ll know what to do.

Before companies cut the ranks, some executives say that implementing less draconian measures could bring better long-term results. Instead of dropping employees from the payroll, companies can boost the bottom line by focusing on efficiency and productivity. In short, by getting more out of employees.

One way to do this is by tracking sales per employee, a valuable metric for measuring productivity. Salesforce.com, for example, uses sales-per-employee numbers to compare the relative performance of internal divisions. Employees are also encouraged to take career aptitude tests to determine if this line of work is what they’re really good at, or that they may consider changing to another professional field.