Businesses profit largely through the talent of their work force. This is glaringly obvious when looking at a company's salespeople, because acquired sales and profits are directly related to the efforts of an individual worker. Calculating manpower in terms of revenue offers an average revenue generated per salesperson, but this figure also establishes a baseline for determining the performance of individual salespeople. This allows you to identify the key salespeople who contribute the greatest profits to the company.
1. Divide the company's total sales by the number of salespeople. This gives you the average revenue per salesperson. As an example, if your 50-person sales force produced $7.5 million in sales revenue, then on average each salesperson generated $150,000 in revenue.
2. Subtract each individual's sales revenue from this average. This tells you how much more or less revenue this salesperson generates when compared to the average. In the example, if you had one salesperson who generated $350,000 in sales, then he outperformed the average by $200,000.
3. Divide this figure by the average revenue and then multiply by 100 to determine the percent increase or decrease. In the example, $200,000 divided by $150,000 gives you 1.33, or a 133 percent increase over the average.
4. Repeat this calculation for all the salespeople to see where they stand when compared to the average. This allows you to identify the most valuable salespeople in your company, as well as the ones who need more coaching.
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