Deo Melgaco has a fascinating set of posts looking at Wal-Mart and Microsoft and the costs associated with employees.
The highlight is the chart that shows the annual net income for the two companies, plus Oracle and Costco, compared with the number of people employed. Microsoft profitted to the tune of $12.6 billion last year on 71,000 employees, earning $177,450 per employee, while Wal-Mart earned $11.3 billion on 1.9 million employees, a profit of just $5,938 per employee.
In an article published on Strategic HR Review by Paul Kearns, I found especially interesting the idea of Added Value per Employee – it is a key business metric that helps to understand how efficacious the Human Resource Management practices are in producing wealth for a company. According to the author, this ratio is now kind of a guiding principle for Human Resources Management analysis – why it is as it is and what a company can do to improve it.
Microsoft, Employee, Employment, Earning, Corporate News, Microsoft News