February 8, 2012

What do Tech Companies Earn per Employee?


Internet and technology companies have been credited with steady job-growth in spite of the recession. But have you ever wondered how much each tech employee is worth? Or about the comparison between tech workers and workers in other sectors?

A taste of this comparison can be drawn out from the fact that the automotive company General Motors, (which was the world’s largest IPO in 2010 with a value of $20.1 billion) currently weighs at a market cap of $41.02 billion, and employs 202,000 employees to create that value. Facebook, however, filed for $5 billion dollars in its public offering, and it estimated by market analysts to have a value of $100 billion. It has only 3,000 employees.



Statista, a research firm published the statistics (that was collected and processed over nine months—from January 30, 2011 to September 30 of the same year) of how internet technology companies measure up among others in their domain. A report from Mashable parsed the data together



What is the revenue of internet technology companies per employee?
The return per employee amongst internet technology companies had Apple coming first with $1,349,000 dollars. Netflix came in second with $1,068 thousand, followed by Google at $842,000, and Facebook at $691,000. The average revenue per employee, based on the entries in the chart was $592.8 thousand, and Microsoft just came in under the average with $569,000. Amazon came in at sixth place with $545,000, and Zynga followed at $297,000 after a large difference. Twitter gained an estimated $263,000 per employee, while LinkedIn and Groupon took the last two positions on the graph with $197,000 and $107,000 respectively.

What is the net income per employee?
Statista had another set of data collected in the same period that revealed the net income of these technology companies (except Twitter, which has not gone public yet—thus having the privilege to keep its financial numbers to itself). Apple again came first, with $329,800 dollars of net income going to each employee, followed by Facebook with$218,800 and Google with $216,600. Microsoft came in fourth on the list of nine, with $182,000, and Netflix followed at$87,600 after a substantial lag. Zynga and Amazon ranked under Netflix with $11,000 and $8,100 respectively. LinkedIn came in second-last with $2,800, and Groupon’s employees accounted negatively for the company, with -$22,900

How much of the market capital did the employees contribute for?
As of February 6, 2011, the market capital per employee was the most for Facebook, was $23.44 million, but market estimates of $75-100 billion dollars (since the social network had not gone public at the time) led to an approximate $31.25 million. It was followed by Apple which came in second with $7.10 million, and Google with $5.97 million at third place. LinkedIn came in at fourth place with $4.34 million, followed by Zynga having a market cap of $3,360,000 and Netflix with $3.21 million. Microsoft came in next with $2.82 million and Amazon came in second-last with $1.52 million. Groupon was last on the list of the nine Internet technology companies, with each employee contributing to $1.50 million of market capita

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