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What industry has the highest revenue per employee?

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Re: What industry has the highest revenue per employee?

#11

Post by extralego »

mattzito wrote: post #6

One item that I find potentially misleading is that, to my understanding, oil and gas companies outsource/subcontract a lot of the seasonal/irregular/less predictable work to third-parties. This means that these people aren't calculated in these numbers, but they generate a good chunk of the revenue. I could be wrong about that, but I used to work with Exxon and they talked about this - that the total employee base w…

The same could be said for a lot of other industries; only not the other industries which fall in these rankings.

But, the prominent 3 categories that made the list are:

- known as the most corrupt 3 industries in America

- a poor American’s only means of access to 3 of the most critical commodities in their life. The other 2 (food, housing) are disqualified by their own unique attributes.

- oil, healthcare, finance

Re: What industry has the highest revenue per employee?

#13

Post by UK-Al05 »

aikinai wrote: post #4
sidlls wrote: post #3

How can any software developer at, say, Apple or Facebook see this and not think they're under compensated.

Because that's not how labor economics works. Also, why do you focus on Apple and Facebook (#33 and #42)? If you think employees should be compensated per revenue, then oil drillers are the ones that should be complaining; they should be paid far more than software developers.

Oil rig workers generally are paid well and in low cost areas.

Re: What industry has the highest revenue per employee?

#14

Post by nomel »

mattzito wrote: post #6

One item that I find potentially misleading is that, to my understanding, oil and gas companies outsource/subcontract a lot of the seasonal/irregular/less predictable work to third-parties. This means that these people aren't calculated in these numbers, but they generate a good chunk of the revenue. I could be wrong about that, but I used to work with Exxon and they talked about this - that the total employee base w…

This is also true with many consumer electronics companies. Design and some level of QC in house, most everything else from the vendors, at cut throat rates.

Re: What industry has the highest revenue per employee?

#15

Post by adventured »

aikinai wrote: post #4
sidlls wrote: post #3

How can any software developer at, say, Apple or Facebook see this and not think they're under compensated.

Because that's not how labor economics works. Also, why do you focus on Apple and Facebook (#33 and #42)? If you think employees should be compensated per revenue, then oil drillers are the ones that should be complaining; they should be paid far more than software developers.

Overall the energy sector is still the best paying.

Median compensation for energy sector employees: $123k (tech is at $96k).

https://www.bloomberg.com/news/articles/2018-07-05/shale-cou...

Re: What industry has the highest revenue per employee?

#16

Post by sidlls »

aikinai wrote: post #4
sidlls wrote: post #3

How can any software developer at, say, Apple or Facebook see this and not think they're under compensated.

Because that's not how labor economics works. Also, why do you focus on Apple and Facebook (#33 and #42)? If you think employees should be compensated per revenue, then oil drillers are the ones that should be complaining; they should be paid far more than software developers.

Because of the demographics at HN and my tenure in the tech industry and lack of it in others on that list.

Re: What industry has the highest revenue per employee?

#17

Post by acchow »

11thEarlOfMar wrote: post #10

Not a fan of Revenue Per Employee as a measure of operating efficiency. It would be much more telling to evaluate net earnings per employee: Net Earnings Per Employee: Valero: $365,452 [1][2] Apple: $766,800 [3][4] [1] https://www.statista.com/statistics/531676/valero-energy-cor... [2] https://finance.yahoo.com/quote/VLO/financials?p=VLO [3] https://www.apple.com/job-creation/ [4] https://finance.yahoo.com/quote/AAPL…

What about efficiency of capital?

Re: What industry has the highest revenue per employee?

#19

Post by airstrike »

This is a pretty useless metric. It's really only used as a proxy to compare the value of similar companies in the same industry when no other data is available.

You know what measures your economic value as an employee? Wages.

Your value as an employee is that which is lost by removing you from the equation. If you can be replaced by virtually anyone, your value approaches zero.

Re: What industry has the highest revenue per employee?

#20

Post by toomanybeersies »

sidlls wrote: post #3

How can any software developer at, say, Apple or Facebook see this and not think they're under compensated.

I'm more concerned about the janitors at Facebook that are earning $15 per hour with minimal benefits [1]. Those free meals and free gyms at Facebook and Apple are only for the alphas, the epsilons are there simply to cook their food and clean up after them.

To actually answer your question though, companies will pay the lowest wage possible while still being able to sufficiently fill positions. For engineers at Facebook this is $250k. For janitors and cooks it's $15 p/h.

[1] https://www.theguardian.com/technology/2017/sep/26/facebook-...

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