Which metric measures revenue generated per employee?

• A. Hours billed per employee
• B. Net revenue per employee
• C. Employee productivity index
• D. Revenue per project

Answer: (B)

This question tests how to quantify revenue produced on a per-employee basis. Net revenue per employee is the metric that directly does that, by dividing the net revenue by the number of employees. Net revenue means revenue after reductions like refunds, discounts, and allowances, so you’re looking at the actual income the firm retains per person. This normalizes for staff size, letting you compare teams or firms of different scales and gauge how efficiently each employee contributes to revenue, which can inform staffing, pricing, and utilization decisions.

Hours billed per employee focuses on workload or utilization rather than revenue generated per person. An employee productivity index can be vague or inconsistently defined, not necessarily tying directly to revenue per employee. Revenue per project measures income per project rather than how much revenue a specific employee contributes, so it doesn’t isolate per-person value.