Wages to Revenue

Why it’s important

Wages to Revenue measures either the percentage, proportion or amount of revenue which is being generated in relation to a company’s Wage Costs. As a result it is a core, operational metric for any firm which employs staff. In Sales-orientated companies, breaking this metric down by employee allows it be used to track actual Sales performance per employee. When a disparity in salaries exist, this is a particularly effective means of seeing true value.

How to create it 

Step One

To create our metric in FUTRLI we’ll need to know:

  1. Salaries
  2. Sales

This information can be sourced from your accountancy platform of choice or uploaded into FUTRLI via CSV.

Step Two

Once you have all of the necessary data, Wage to Sales can be calculated by dividing Salaries by Sales. You can choose to express this as a percentage, as a currency or as a number using the Display Type dropdown in the formula builder.

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