Latest from Contracting Business Success

Photo 47091378 © Vvoevale
ID 115236686 © Cineberg Ug |
Contractingbusiness 9768 Revenueperemployee2 0

How to Manage Revenue Per HVAC Employee

Sept. 15, 2017
'Revenue per employee' gives you an idea of how lean you're running your business.


Your revenue per employee gives you an idea of how lean you are running your business. To identify exactly what that number is, take your total number of employees, including yourself and divide your revenue by that number. Do not include your comfort Advisors or other commissioned staff in the equation.  

Total Revenue = Revenue Per Employee

# of Employees
You need numbers now. If you need to, grab your smart phone and figure your approximate numbers just to get an idea of where you stand. You can fine tune the numbers later.

Where do you rank?

$130-150k  gold

$150-170k  platinum

$170k+        diamond

Is $170k a good number? High numbers may or may not be good. Are you overworking your people or are you missing opportunities to hit that number? Opportunities you may miss with higher numbers are longer waits for service calls or lower customer satisfaction due to overworked employees. You need to weigh the factors and see what is right for your business.

Focus on company culture. If your numbers are not where you want them to be, company culture is the first place you should look. The best ways to improve company culture is leading and training your team. It will be easier to decide where to focus first if you ask these 7 questions.

1.   Do my people understand the strategy and game plan I am trying to accomplish?

2.   Am I operating efficiently?

3.   What does my marketing effort look like?

4.   What does my sales focus look like?

5.   Am I overstaffed?

6.   Do I lack direction?

7.   Do my team members understand their roles?

Involve your team. Your team will often know where you need to push harder or let off. Ask for feedback from them and let them know you value their opinion. It is vital they understand that everything affects everyone in the company.