Revenue per employee (RPE) is like that fitness tracker on your wrist—it tells you something useful, but if you obsess ...
Revenue per employee (RPE) is like that fitness tracker on your wrist—it tells you something useful, but if you obsess over it, you’ll end up injured. Here’s why RPE matters, why it’s misleading, and how AI changes the game:
Here are a few uncomfortable truths:
- Low RPE = margin leaks. If your RPE lags peers, it usually means bureaucracy has metastasized: too many managers, too many layers, too many PowerPoint reviews. It’s a productivity tax.
- AI isn’t just automation—it’s judgment. Process automation has been around for years. The next frontier is decision automation: AI deciding discounts, scoring leads, forecasting revenue. It’s like hiring a robot manager that never sleeps.
- Sales without the CRM grunt work. Sellers hate updating systems. AI can read calendars, emails, and call logs to forecast pipeline—no data entry required. More accuracy, less whining.
- Marketing and HR on steroids. From hyper-personalized campaigns to AI recruiters screening thousands of resumes, every function can double its output with decision automation.
- Beware the dark side. Maxing out RPE at all costs can backfire. Cut too much, and you erode customer experience, drive churn, and torch employee morale. High RPE achieved through burnout and shortcuts is a hollow victory.
The future belongs to the firms that use AI to automate the mundane, empower people for higher-value work, and balance efficiency with sustainability.
Think of RPE as a speedometer—it tells you how fast you’re going. But you still need to check the fuel gauge (margins), passenger happiness (customers), and engine temperature (employees). Otherwise, congratulations: you’re driving fast straight into a wall.