Why Payroll To Revenue Ratio Is Crucial For Business Leaders: Find Out Now!
What is the per-employee revenue?
www.ceomconsulting.com/lp/payroll-to-revenue-ratio
Discover the importance of the payroll-to-revenue ratio and how it impacts your business's financial health. This video breaks down the ratio, how to calculate it, and why it varies across industries. Learn how to assess your company’s ratio and why simply increasing revenue or cutting payroll isn’t always the solution. Stay tuned for strategies to optimize this ratio in the following video!
Bullet Points:
-Provides a definition of the payroll-to-revenue ratio and its significance.
-Example calculation using $100M in revenue and $30M in payroll costs.
-Comparison of ratios across industries:
-Medical industry/hospitals ~45% typical ratio.
-Manufacturing companies -usually lest than 30%.
-Common challenges companies face with high ratios.
-Ineffectiveness of standard consulting advice: "Increase revenue and lower payroll."
