Increasing Productivity of Tech Employees

Ultimately that’s why SV still makes sense for tech companies, and increasingly not for others. I

@manch is fast to latch on to the concept of revenue per employee. Wondering aloud is he that fast when picking gold :roll_eyes:

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I am definitely not fast enough to bank on factory workers making 60k a year in Austin. :smile:

That actually goes to show average packages of $200k+ TC are not sustainable. There’s fewer and fewer companies that can make a profit with average TC that high.

$200k+ TC doesn’t even count benefits, facility costs, IT costs, cost of revenue (AWS), etc.

Are SHOP and TWLO the two highest?

What is TC? (found answer Total compensation )

Do you have an idea what is the rest of the cost (benefits, facility costs, IT costs, cost of revenue (AWS), etc ) per employee?

Total compensation

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It’s around $40-60k/yr just for benefits, facilities, and IT. People don’t realize how much healthcare, dental, vision, life insurance, disability insurance, etc cost. Office space rent isn’t cheap plus there’s a lot of common space. When we mapped it out, only about 50% of office space was used for desks. The rest is hallways, kitchen area, bathrooms, conference rooms, lobby area, elevators, stairs, etc. All the software tool subscriptions add up.

AWS is 10-15% of revenue for most cloud companies.

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TC for senior SWE may be over 200, but sales and finance jobs mostly not. The chart shows rev per employee, regardless of functions.

Need to increase RPE, top tech have very high RPE,


Broadcom is the highest revenue per employee chip only company. FB, AAPL, GOOG are both chip and software.

I’m pretty sure nflx has highest rev/employee. Looks like rev ~20B/year and ~9k employees.

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Hence apparently they are the most generous in pay.

NFLX - Fiscal Year 2018


$2.22M per employee

Guess NFLX is not a tech company.

Anyhoo, Apple has tons of retail stores guys yet so high revenue per employee. Definitely a better business than most.

Still not good enough for @manch to buy AAPL? Prejudice or stubborn to admit he is wrong?

On the other hand…