Dan Walter commented on 'Employee Size Doesn’t Count'
Jim,Great post. This is another tangential argument for why the CEO/Employee pay ratio in Dodd-Frank will never provide useful information. Given every business model is different, and every staffing...
View ArticleE. James (Jim) Brennan commented on 'Employee Size Doesn’t Count'
Wish you hadn't reminded me of that malicious ratio, Dan. If they had required "the average" rather than "the median" for the ratio, it would have been merely deceptively irrelevant rather than both...
View ArticleJacque Vilet commented on 'Employee Size Doesn’t Count'
Different industries --- and mfg vs biz services. Too much variation to be meaningful. Beware of CEOs or CFOs asking for this ---- you have a lot of educating to do.
View ArticleJoe Rice commented on 'Employee Size Doesn’t Count'
Hey Jim, I saw that post on the forum and the same skepticisms came to mind. I gave the benefit of the doubt and thought it may be to benchmark revenue per employee. That was the only valid purpose I...
View ArticleJacque Vilet commented on 'Employee Size Doesn’t Count'
Revenue per employee would vary too depending on industry. Maybe if you looked at it within an industry? But business models, strategy, etc. are still different. Can see no reason to use it in my opinion.
View ArticleE. James (Jim) Brennan commented on 'Employee Size Doesn’t Count'
Some nonprofits like charities and municipalities like to use employee count as a proxy size measure, especially if they engage in empire-building, since they lack "sales" or "assets" like for-profits...
View ArticleJoe Rice commented on 'Employee Size Doesn’t Count'
Revenue per employee is an investor metric so I'd say it's pretty important to track if you're a public company. Industry specific of course. Sure you need context as well but that's no reason to throw...
View ArticleE. James (Jim) Brennan commented on 'Employee Size Doesn’t Count'
Good point, Joe, further confirming that it is the revenue generated that is most significant to management. Ironically, that proves there is an inverse relationship with headcount. The FEWEST...
View ArticleL.Pe commented on 'Employee Size Doesn’t Count'
Absolutely agree. If you are able to make the same money with less employees, it means that you have more talented employees and implemented innovation than your competitor.
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