In the add-on replacement business, revenue per employee is an important key performance indicator (KPI) — a guideline that helps measure the effectiveness of a company as it relates to industry performance.
The first step is to see how your company is doing. To find the revenue per employee, take the total revenue of your add-on replacement business and divide it by the number of employees. Then compare the result against the industry KPIs.
1. The numbers. The industry minimum for the revenue per employee KPI is $130,000 to $150,000. The middle range is $150,000 to $170,000. The upper range is over $170,000.
2. Determine where you fall. See how this compares to your desired goal. If your performance is lower than you want it to be, consider whether there is a problem with the company culture, operating effectiveness, marketing efforts, or sales focus. If it is too high, are you overworking your employees?
3. The gap. Once the gap is determined, develop your action plan. What are the top three things that you will implement?
Keep in mind that the KPIs are guidelines. Take incremental steps to improve your performance and ensure that your people are on board with any changes.
Mike Moore offers daily HVAC advice for managers, technicians, and sales teams daily on Facebook, Twitter, and in his blog. Follow Mike and stay in the know.
