Revenue per worker: Manufacturing tops

Indian firms make a profit of Rs 15 on a revenue earning of Rs 100 per employee,according to Pricewaterhouse Cooperss PwC latest report on measuring human capital effectiveness. The report states that organisations make an investment of Rs 7,000 on learning and development Lamp;D per employee and with an average remuneration of Rs 4.8 lakh and Rs 6 lakh of profit per employee,the human capital return ratio on investment is 1.79 for organisations in India.

Among all sectors,engineering and manufacturing generate the most revenue and profits per employee followed by fast moving consumer goods FMCG and pharmaceutical sectors. The report is based on a survey of 37 firms across all sectors and gives a snapshot of how organisations that focus on maximising employee contribution are better positioned for growth.

In fact,organisations with higher revenue base incur 1.3 times higher cost per employee but also earn 1.4 times higher profit per employee organisations compared with lower revenue base companies,according to the study.

It also states that Indian organisations spend approximately Rs 25,500 per hire on an average. However,FMCG and other unclassified sectors spend more than double the amount towards their recruitment. It further states that information technology and information technology enabled services IT/ITeS sector recruits the highest number of graduates,but when it comes to retaining entry level talent,engineering and manufacturing sector is on the top.

IT/ITeS,which has the lowest spend on Lamp;D per employee,witnesses the highest termination and resignation rate as well.