Profit per employee

How do you know if your firm is automating enough?


While the answer to that question may be subjective, I also know a related one that isn’t – what is your profit per employee and how is it trending?

Turns out there’s a connection between how profitable your firm is per employee and which direction it is trending that may explain whether or not your firm is making progress or losing ground to your competition.

From a study done on the matter, it turns out that there’s a correlation between the age of an organization and its profit per employee.

The older the company, the less profitable it is per employee.


So what does this mean?

Companies are changing and becoming more automated.  They require fewer and fewer employees.  These companies have either greatly reduced or completely eliminated time consuming busy work through automation and technology which has boosted their profitability significantly.

Younger companies are leveraging these strategies more effectively than older companies.

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Now that we’ve established this, here’s my challenge to you and your firm:

Do you know how profitable your firm is per employee?  Do you know how that has been trending over the last 5-10 years?  Is it going up or coming down?

If you dive into this data, I think you’ll have the answer to my original question.


If profit per employee is going up then you’re on the right track.  If it’s going down then your firm might be in trouble.


PS. Read more about the profit per employee study.

Talk soon,

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