7 ms·

makes sense given their employee to revenue ratio for Salesforce. They had 73,000 employees with just ~31B/year of revenue. That’s just 424k of revenue per empl

makes sense given their employee to revenue ratio for Salesforce. They had 73,000 employees with just ~31B/year of revenue. That’s just 424k of revenue per employee. Such a ratio only makes sense with high growth rates.

JanSt 4y ago
Am I the only one who thinks $424k/employee is quite a lot? May be a too european perspective?
- apocalyptic0n3 4y ago
  That's how I'm feeling too and I'm in the US. Just doing some rough math, my company is at around half that and we're doing quite well at the moment. We are much smaller though.
- tr3ntg 4y ago
  No, the best startups run healthily at -$424k/employee, so any positive number is really great. (sarcasm)
  - HDThoreaun 4y ago
    revenue is not profit.
- adamsmith143 4y ago
  Well for comparison revenue per employee at Apple and Google is ~$1,800,000 and $1,200,000 respectively.
- andsoitis 4y ago
  Here is a list of (American?) companies that make the most profit per employee. You can also see the list in terms of revenue per employee: https://tipalti.com/profit-per-employee/ https://tipalti.com/profit-per-employee/ At the top of the list is Air Lease, generating more than $4m profit per employee. I didn’t double check for correctness.
xnorswap 4y ago
Sometimes I feel like I live in a parallel universe because 424k revenue per employee sounds like a large amount and should be very profitable. Admittedly I'm not in the USA but even adjusting for that it still sounds large? Are all US salaries so inflated that 424k doesn't more than cover a typical employee even after all overheads?
- makestuff 4y ago
  typically you need 1.5-2x a persons salary in revenue to cover their cost in the US.
  - kasey_junk 4y ago
    Which is why you typically quote that value instead of revenue per employee which without context could be great or terrible.
    - robertlagrant 4y ago
      Quote what value?
      - kasey_junk 4y ago
        Revenue multiple per employee.
        robertlagrant 4y ago
        Wouldn't that have the same problem? You'd need to break either down by cost of living area to solve it.
        kasey_junk 4y ago
        No because the revenue per employee multiple has the employee costs scaled on both sides of the ratio.
Octokiddie 4y ago
/s ?
deleted 4y ago
[deleted]

JanSt 4y ago

Am I the only one who thinks $424k/employee is quite a lot? May be a too european perspective?

apocalyptic0n3 4y ago
That's how I'm feeling too and I'm in the US. Just doing some rough math, my company is at around half that and we're doing quite well at the moment. We are much smaller though.
tr3ntg 4y ago
No, the best startups run healthily at -$424k/employee, so any positive number is really great. (sarcasm)
- HDThoreaun 4y ago
  revenue is not profit.
adamsmith143 4y ago
Well for comparison revenue per employee at Apple and Google is ~$1,800,000 and $1,200,000 respectively.
andsoitis 4y ago
Here is a list of (American?) companies that make the most profit per employee. You can also see the list in terms of revenue per employee: https://tipalti.com/profit-per-employee/ https://tipalti.com/profit-per-employee/ At the top of the list is Air Lease, generating more than $4m profit per employee. I didn’t double check for correctness.

xnorswap 4y ago

Sometimes I feel like I live in a parallel universe because 424k revenue per employee sounds like a large amount and should be very profitable. Admittedly I'm not in the USA but even adjusting for that it still sounds large? Are all US salaries so inflated that 424k doesn't more than cover a typical employee even after all overheads?

makestuff 4y ago
typically you need 1.5-2x a persons salary in revenue to cover their cost in the US.
- kasey_junk 4y ago
  Which is why you typically quote that value instead of revenue per employee which without context could be great or terrible.
  - robertlagrant 4y ago
    Quote what value?
    - kasey_junk 4y ago
      Revenue multiple per employee.
      - robertlagrant 4y ago
        Wouldn't that have the same problem? You'd need to break either down by cost of living area to solve it.
        kasey_junk 4y ago
        No because the revenue per employee multiple has the employee costs scaled on both sides of the ratio.

Octokiddie 4y ago

/s ?

deleted 4y ago

[deleted]