personnel cost

Labor-to-Sales Ratio: What is it? And why should I care about it?

Labor-to-Sales Ratio: What is it? And why should I care about it?

Have you wondered if your business has too many or too few employees working? You might want to consider calculating your labor-to-sales ratio. This number is a commonly used performance measure by businesses to track their labor costs and its impact on operations. The labor-to-sales ratio shows the total labor costs for each $1 in sales.