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Employee value added


It measures the average profitability per employee.



Calculation steps:

  1. identify the revenue value for the time frame
  2. identify the total cost with employees
  3. total cost = revenue - profit before taxes
  4. identify the employment costs (pay + benefits)
  5. identify the average numbers of employees within the company in the time frame
  6. apply the formula


The average number of employees can be replaced by the total number of FTEs.

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