Whats your net profit per employee


#1

Hi guys,

Just shoutin out to any guys out there with WC business with more than 1 employee…whats your final profit before tax per employee?

For example if you have a yearly net profit of 70,000 and employ 3 guys…then you divide that 70,000 by 3…then you can see that each employee makes you 23,000 profit.

I find that this method is effective in evaluating how strong or well managed a business is regardless of how much longer one has been in the WC business.

So if there’s some big shot company with profit of 300,000 and employing 10 guys then his PPE (PROFIT PER EMPLOYEE) IS 30000
Then take a smaller guy who is relatively new to the business and his net profit IS 150000 but only employs 3 guys then you can see his PPE is 50000.
So although the big shot makes more money it is clear that the smaller will soon over take him as he runs his business much more effectively

its a good way to look at the future of your business

Maybe some of you guys can compare you PPE figures and we can see who manages their wc business most effectively(only for fun ha!!;))…regardless of how long anyone have been in the game or how much work they get

In case your wondering I’m a one man show myself but hopefully will be employing soon

Looking forward to hearing from you guys:cool::cool:


#2

A trend over time is more effective at measuring the value of a business than a single year-end piece of data, yes?

Of course, many factors affect the future of a business, successful or otherwise.

BTW, I have no employees.


#3

Well one could argue larry that a trend will fluctuate just like your profits as the economy fluctuates, the trend really shows your profit with no regards of your specific actions in the work place.i.e the business could be going fine as a result of a calm nationwide economy…and then suddenly the economy turns and everyones profits predictably drop,

whereas this method can demonstrate in the grittiest detail, your companys performance regardless of how the ecomomy is progressing…a trend is constant and so yes is more effective in observing profits in an established business… but if you are only getting on to your feet(like me) this could be a good way of seeing just how you measure up in terms of logistics and management in comparison of the big shots…

Any way just an idea that i was playing with in my head for pat few hours…


#4

Would really love to see some figures up here!!!


#5

I am a one man show, sorry i cant give you any figures homie


#6

Ye likewise, suppose the majority of us are so im startin to think this thread wont see much action…no worries


#7

Well…i can share that we’ve seen a slow down regarding new clients to a certain extent.Basically a drop off in cold calls,more seem to be price checking then usual,those looking for the “deal”!

While on that note…it’s picked up a bit lately,but…the numbers dont lie;)

Also…here in California my employee’s cost me roughly 35% after taxes,work comp is said & done.Last year…payroll ran me in the neighborhood of between 45,000/50,000. Can you say OUCH:eek: and that was with 3 guys 2 full time & 1 part timer.


#8

So, you have no figures in response to Rob’s question either (this wasn’t a payroll question.)