Net Income per Employee

Net income per employee is a measure of a company’s profitability relative to its workforce, calculated by dividing the company’s net income by the total number of employees. This metric is used to assess how efficiently a company generates profit from its human resources. Higher net income per employee indicates greater efficiency in using its workforce to generate profits.

Example

A company with a net income of $10 million and 500 employees has a net income per employee of $20,000, reflecting its efficiency in generating profit through its workforce.