Operations
Why it moved
The same change expressed as revenue growth against headcount growth.
The Formula
(1 + revenue growth) / (1 + headcount growth) - 1
The same change expressed as revenue growth against headcount growth.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| gR | Revenue growth | fraction | The fractional growth in revenue. |
| gN | Headcount growth | fraction | The fractional growth in employees. |
What Each Symbol Means
gRfraction
Revenue growth
The fractional growth in revenue.
gNfraction
Headcount growth
The fractional growth in employees.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate revenue per employee page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Revenue Per Employee, filed under Business. Every number the guide produces comes from substituting into this one line.