Revenue per Employee
Revenue Per Employee Trends by Firm Size.
1. Very little change for small firms. Reason: small firms have yet to figure out how to grow revenue while keeping headcount flat.
2. Excellent trend upward for large firms. Reason: large firms can grow revenues without growing headcount.
3. Big drop for medium firms at the end of 2022. Reason: revenue dropped more than expected and they did not reduce headcount.
Key lesson: boutique professional services firms must learn how to grow revenues without adding headcount.