Marketing Expense per Firm-Wide Employee
Definition: Total expense incurred by the Marketing department (wages, benefits, overhead, campaign expenditures, etc.) over a certain period of time divided by the total number of employees (company-wide) working for the company.
Discussion: Marketing Expense per Employee key performance indicator (KPI) is a measure of marketing expense relative to the size of the company (total number of employees). A high Marketing Expense per Employee ratio can be an indicator of business process inefficiency or misguided strategy. For example, costly and ineffective marketing programs that bleed cash or overly aggressive campaigns which provide only a marginal benefit. Companies should strive to lower Marketing Expense per Employee, especially in areas where costs are piling up due to lack of oversight and accountability; Doing so will cut expenses while maintaining, or even improving the quality of Marketing department operations.