{"id":3659,"date":"2016-11-22T10:32:47","date_gmt":"2016-11-22T09:32:47","guid":{"rendered":"https:\/\/www.desertsun.co.uk\/blog\/?p=3659"},"modified":"2016-11-23T13:44:55","modified_gmt":"2016-11-23T12:44:55","slug":"economics-at-the-independent","status":"publish","type":"post","link":"http:\/\/www.desertsun.co.uk\/blog\/3659\/","title":{"rendered":"Economics at The Independent<\/em>"},"content":{"rendered":"

The Independent<\/em> has put out an article<\/a> on how much employees of various multinationals are “worth”:<\/p>\n

Tech companies are famous for the high salaries and bonuses potential candidates get when they join their firm. But the true value of the employee is actually much more, according to new research.<\/p>\n

Focusing on the top 100 companies in the world by revenue and the number of employees they have, analysts at Expert Market have worked how much each employee is worth.<\/p>\n

Expert Market worked out how much each employee was worth by dividing the revenue of a company by the number of employees and found the following:<\/p><\/blockquote>\n

Oh dear. \u00a0Expert Market don’t appear to have much expertise if this is what they’ve gone and done, and nor do journalists from The Independent<\/em>. \u00a0Revenue divided by number of employees doesn’t tell you much: the company might be making catastrophic losses for all we know, meaning all those employees aren’t adding much value at all.<\/p>\n

It is profit, not revenue, that is the measure of a company’s added value and therefore to work out what each employee is worth on average you’d need to divide profits by the employee headcount. \u00a0Here’s what they’ve done with Shell:<\/p>\n

Shell: \u00a32,681,470.00 per employee<\/p>\n

Revenue: \u00a3252,058,180,010<\/p>\n

Number of employee: 94,000<\/p><\/blockquote>\n

No, just no. \u00a0Look here<\/a> instead:<\/p>\n

Shell 2015<\/b><\/h2>\n\n\n\n\n\n\n\n\n
Financial Year<\/th>\nRevenue(bn)<\/th>\nProfit(bn)<\/th>\nNo. of Employees<\/th>\nProfit per Employee<\/th>\n<\/tr>\n<\/thead>\n
2015<\/td>\n$265.0<\/td>\n$1.94<\/td>\n93,000<\/td>\n$20,860<\/td>\n<\/tr>\n
2014<\/td>\n$421.1<\/td>\n$14.9<\/td>\n94,000<\/td>\n$158.510<\/td>\n<\/tr>\n
2013<\/td>\n$451.2<\/td>\n$16.4<\/td>\n92,000<\/td>\n$178,260<\/td>\n<\/tr>\n
2012<\/td>\n$467.2<\/td>\n$26.7<\/td>\n87,000<\/td>\n$306,896<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Bit of difference, isn’t it?<\/p>\n

UPDATE<\/strong><\/span><\/p>\n

Alex K. makes some valid points in the comments, and Tim Worstall sets me straight on a similar point here<\/a>. \u00a0I’m learnin’.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Independent has put out an article on how much employees of various multinationals are “worth”: Tech companies are famous for the high salaries and bonuses potential candidates get when they join their firm. But the true value of the … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50,60],"tags":[],"_links":{"self":[{"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3659"}],"collection":[{"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=3659"}],"version-history":[{"count":3,"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3659\/revisions"}],"predecessor-version":[{"id":3674,"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/posts\/3659\/revisions\/3674"}],"wp:attachment":[{"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=3659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=3659"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.desertsun.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=3659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}