Per Employee: Expense, Gross Profit, Sales Or Working Stalls

Computations

Additional Calculations

To measure the productivity of employees, dealerships often use gross profit, sales volume and expenses of a particular department to determine the productivity level of the employees in that department.  For example, in the New Vehicle Department, retail sales or gross profits can be pro rated per salespeople.  Similarly, the F&I Department productivity can be measured by dividing the number of finance contracts sold by the number of F&I Managers.

Department Dollar or Unit Sales, Gross Profit, Expense, Stalls, etc., / Number of Employees in the same Category = Department Dollar or Unit Sales, Gross Profit, Expense, Stalls, etc., Per Employee.

Example:

New Vehicle Department Gross Profit per Salesperson

New Vehicle Department Sales per Salesperson

The productivity of the service advisors could be measured by the gross profit of customer or warranty labor or the number of repair orders written.

Example:

The amount of Mechanical Labor Sales per Stall is calculated as shown in the example below:

Example:

The productivity measurement of service technicians can be measured by their flat rate hours to clock hours worked.  This can be calculated for each technician individually and for the entire Mechanical Department.

Example:

Total Parts Sales per Parts Department Employee is another measure of employee productivity.  It is calculated by taking the Total Parts Sales divided by the number of employees assigned to the Parts Department.

Example: