Study Shows Small Employers Net Higher Profits-Per-Employee

According to the 2008 National HR Metrics Survey, recently released by ERC (Employers Resource Council), small employers net the highest average profit-per-employee, a measure of organizational effectiveness and efficiency. Over 640 U.S. employers were surveyed for this report.

Employers with fewer than 500 employees reported an average profit-per-employee of more than $120,000, which was higher than those organizations with over 500 employees. The smallest employers in the study, those with fewer than 100 employees, reported over $40,000 more in profit-per-employee than those with an excess of 1000 employees and over $80,000 more in profit-per-employee than those organizations with between 501 and 1000 employees.

Source: 2008 National HR Metrics Survey
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