Remove the oil companies and you mostly have a list of rent seekers ready for massive disruption.
... Who operate on razor-thin margins. 99.9% of that revenue goes right into paying suppliers.
What industry has the highest revenue per employee?
61–70 of 132 posts
Re: What industry has the highest revenue per employee?
#62One 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…
I think people often don't realize the scale at which energy companies use contractors/etc. The "boots on the ground" folks are almost entirely contractors or hired through another company. Plenty of companies exist purely to provide employees to one oil company in one field. Exxon/Chevron/Total/BP/etc each have around 50-100k employees (I may be a bit off there, but it's in the ballpark). The workforce required for…
Telecomms do this for laying new wires/fiber too. They subcontract most all of the lashing, digging, and boring and the pulling of actual fiber lines, leaving the ends loose, and only then use their own employees to go out and actually splice them into the previous lines or into an active network. The connections at the end are quick and easy with little liability risks, unlike climbing electric or telephone poles, trimming trees near aerial cables, going into underground utility tunnels, and digging trenches through power and gas and water and other cables. They also don't have to buy and maintain nearly as many boom trucks and excavating machines like horizontal boring machines or mini excavators.
Re: What industry has the highest revenue per employee?
#63Earlier quoted context omitted.
Why should I believe that the statistic does include foxconn workers? I'm asking this sincerely.
To clarify, I'm arguing that the metric is: (Net Earnings of Apple) / (Number of Apple Employees). What I'm saying is that the net earnings of Apple by definition subtracts out the money paid to Foxconn to build Apple's products. I'm not arguing that the number includes the Foxconn employees in the denominator, and it shouldn't, because the numerator (Apple's net earnings) doesn't include money paid to Foxconn (as th…
It is a better measure, but it's still pretty arbitrary. Apple could achieve an even higher profit per employee just by splitting the company in two: put all the capital in one company and all the employees in the other.
I wouldn't read too much into any of those measures.
Re: What industry has the highest revenue per employee?
#64Multiple HFT companies would be top 10 on that list.
Neither of the two major publicly traded HFT firms would have made the top 10 if they were in the S&P 500. http://d18rn0p25nwr6d.cloudfront.net/CIK-0001592386/f7d31d31... https://www.flowtraders.com/system/files/downloads/Flow%20Tr... I can imagine some smaller firms making the list. Did you have any specific ones in mind?
The most successful ones won't be publicly traded.
Re: What industry has the highest revenue per employee?
#65Not 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…
Interesting. I found quite different numbers here. Maybe highly fluctuating depending on the year?
https://www.businessinsider.de/apple-facebook-alphabet-most-...
Re: What industry has the highest revenue per employee?
#66Earlier quoted context omitted.
That Apple number does not include the slave wages of Foxconn workers, other outsourced labor or contractors for which Apple avoids paying benefits.
Actually, it does, and that's why folks are arguing for comparing profit instead of revenue per employee. As others in this thread have pointed out, if you utilize tons of contractors, your revenue per employee may look huge, but your profit per employee will go down because you still have to pay all those people. Whether you use contractors or employees, it still comes out of your bottom line. Now, I assume what you…
Comparing profit doesn't really make sense either. Companies like Amazon show next to no net profit cause they choose to reinvest all their money to avoid taxes and shareholders reap the benefits through capital gains.
Re: What industry has the highest revenue per employee?
#67Scam ICOs
Re: What industry has the highest revenue per employee?
#68One 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…
But that's exactly the definition of an employee vs a contractor. Your last statement is a contradiction of terms.
Re: What industry has the highest revenue per employee?
#69Earlier quoted context omitted.
I think people often don't realize the scale at which energy companies use contractors/etc. The "boots on the ground" folks are almost entirely contractors or hired through another company. Plenty of companies exist purely to provide employees to one oil company in one field. Exxon/Chevron/Total/BP/etc each have around 50-100k employees (I may be a bit off there, but it's in the ballpark). The workforce required for…
Telecomms do this for laying new wires/fiber too. They subcontract most all of the lashing, digging, and boring and the pulling of actual fiber lines, leaving the ends loose, and only then use their own employees to go out and actually splice them into the previous lines or into an active network. The connections at the end are quick and easy with little liability risks, unlike climbing electric or telephone poles, t…
And at the other end of the business they outsource billing and technical support, and franchise their stores. And seem to be forever laying off thousands of workers.
Re: What industry has the highest revenue per employee?
#70Earlier quoted context omitted.
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.
>they should be paid far more than software developers. They most likely are being paid more, when adjusting for cost of living. You can work on a rig making $100k a year in areas where $250k buys you a very nice 3500 SQ ft home with a big backyard. Something that would cost millions in SF, NYC, Seattle, etc.
True in general, but the cost of buying a house is a bad example. Most of that is the cost of the ground, and that doesn't depreciate. So when the developer walks away from the job and moves, they can settle down with millions.
I is ttrue though for rent, food etc.