Profit Per Employee Calculator is a ready excel template to measure the monthly, quarterly, half-yearly, and yearly Profit Per Employee (PPE) of an organization.
We will discuss the ready excel template Profit per employee Calculator, what it is, and how to use this template.
Profit Per Employee Ratio
Profit Per Employee is HR Metric and accounting ratio use to measure efficiency of employees and performance of company over a period. This is a primary metric that emphasizes return on talent.
Profit Per Employee is conservative and output base measure this metric helps higher management to focus on increasing profit relative to their workforce.
Therefore, Profit per employee focuses on intangible-intensive value propositions on talented people. In other words, workforce with some investment in upgrading skills or knowledge can create high profit earning workforce.
How to Calculate Profit Per Employee Formula
Profit per employee is total revenue less operating expenses divide by Total number of Full-time employees. If a company employ a high proportion of part-time workers, employee numbers will have to adjust to full-time equivalent numbers.
The formula to Calculate Profit Per Employee:
Revenue – Operating Expense
No. of Full Time Employees (FTE’s)
Profit Per Employee Ratio Formula
We have create a ready-to-use Profit Per Employee Calculator in Excel with predefine formulas. This template will help you calculate Profit Per Employee on monthly, quarterly, half-yearly, and yearly basis.
You need to enter your monthly revenue, monthly operating expenses, and FTE’s per Month with addition or reduction in workforce during the particular month, and it will automatically calculate Profit Per Employee for you.
How To Use Profit Per Employee Calculator Excel Template?
Profit Per Employee Calculator or PPE Calculator is a very simple and easy-to-use template. Similar to Revenue per Employee Calculator, this template also consists of 3 sections:
- Company Details
- Monthly Data
- Quarterly, Half-Yearly, and Yearly PPE Calculations
1. Company Details
Thus, Company detail consist of company name, company logo, and heading of the sheet. If you are independent HR analyst then you can make multiple sheet and enter company name of your clients in this section.
2. Monthly Data
Therefore, Monthly Data consists of monthly revenue, monthly operating expenses of company as well as addition/deduction of Full-time employees during that particular month.
Moreover, Simply enter monthly revenue and operating expenses against the respective month.
So, Employees add to workforce will enter in the “FTE’s Joined” column. Thus, Employees left or fire during that particular month will enter in the “FTE’s Fired/Left” column.
Above all, Entering the FTE’s data will automatically update the “Total FTE” which is use in Profit Per Employee Calculations.
In addition to this, this section also consists of column for Monthly Profit Per Employee. The formula to calculate monthly PPE is follows:
Monthly Revenue – Operating Expense
No. of Full Time Employees (FTE’s) at end of that month
Therefore, The line total for each column has been given at the end of this section. Sum Function has been used for totals.
3. Quarterly, Half-Yearly, and yearly PPE Calculations
However, This section includes 4 quarterly PPE calculations, 2 half-Yearly PPE calculations as well as 1 yearly PPE calculation. The formulas used to calculate each of them has been given below for your ready reference:
1. PPE Quarterly:
Moreover, Total Revenue per Quarter – Total Operating Expense per Quarter
No. of Full Time Employees (FTE’s) At the end of Each Quarter
2. PPE Half Yearly:
So, Total Half Yearly Revenue – Total Half Yearly Operating Expense
No. of Full Time Employees (FTE’s) at the end of 6 Months
3. PPE Yearly:
Also, Total Revenue Per Annum – Total Operating Expense Per Annum
No. of Full Time Employees (FTE’s) at the end of the year
This template is useful to HR analysts, HR professional, HR assistants, and also to small business owners