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Employee Engagement & Your P&L


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For the next few minutes, I'd like to demonstrate to you the positive financial impact your P&L and balance sheet can receive, when you introduce enterprise mentoring to your company.

Specifically I'd like to explain how, through Enterprise Mentoring, you can generate higher levels of revenue and profits, by creating a workforce which is engaged, motivated, passionate, innovative and puts your customer at the centre of everything you do.

To understand this connection between people and profit, let's look at the example of Amroze Technology.

Amroze has 1,000 employees worldwide and turns over £100m on its global operations.

In it's UK subsidiary, Amroze have 100 employees and revenues of £10m, representing 10% of the groups worldwide revenues and profits.

Your company may be closer in size to the UK subsidiary, or you may be closer to Amroze's worldwide operations with 1,000 or more employees.

You may even be a smaller company with a team of just 10 or so, but either way, the principles I'm about to share with you in this presentation work whatever your size of company, and wherever you're located in the world.

At Amroze, in both the UK and worldwide, the average revenue per employee is £100,000.

This means, for each person employed by Amroze, on average they generate £100,000 in revenues. This £100k average revenue per employee is a KPI which Amroze actively manage, and don't like to see this figure drop below their target.

They would however like to see it increase!

The average salary at Amroze, when you add in payroll taxes and other people costs, is around £40,000 per person.

This means in the UK subsidiary, out of the £10m annual revenue, £4m is spent directly on payroll and people costs.

Payroll and people costs represent the largest single expense in Amroze's P&L account.

In the UK, other costs such as marketing, overhead and cost of sales are another £4.8m, leaving a net profit of £1.2m pounds or 12%.

This 12% profit figure is roughly the same for the worldwide operations too.

Another way of breaking these numbers down is by looking at the profit per employee figure.

This means that out of the £100,000 revenue that each employee generates, £12,000 is profit.

In other words, every single employee generates £12,000 of profit for Amroze Technology.

The question for Amroze is, what can be done to get the profit per employee up to £13,000 or more per year, whilst keeping payroll costs the same.

And the question for you in your business, is how can you get more profit and performance out of your own workforce - and how can people development approaches such as Enterprise Mentoring help you do this.

Firstly, it's important to see all your employees as a key part of your company's sales and marketing activities.

The way all your employees interact with your customers is a key influencer as to whether or not your customers repeat buy from you, or they leave you for a competitor.

Also, your employees are full of new innovative ideas which can drive your company forward, these ideas just need tapping into - - all of which can have a dramatic and positive impact on your revenues and profits.

Let me explain this further with the help of Amroze Technology...

In the UK, Amroze spend more than £1m each year on marketing and targeting new customers through trade shows, direct mail, web based marketing, direct selling and a channel partner programme.

Through their marketing they make a big promise to the world and tell their prospective customers what great products they offer, and what a fantastic service they deliver.

However, Amroze know that a significant proportion of their revenue comes through repeat and referral customers, and the majority of the profit in their business comes also from existing customers.

Stephen Fox the CEO of Amroze knows that in recent times, Amroze have lost a couple of their key customers, which has hurt re

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Employee Engagement & Your P&L

  1. 1. Higher Profits Engaged Customers Engaged Employees
  2. 2. Amroze Technology 1,000 - worldwide employees £100m - worldwide revenue 100 - UK employees £10m - UK revenue
  3. 3. Average REVENUE Per Employee - £100k £100k £100k £100k £100k £100k
  4. 4. Average PAYROLL COST Per Employee - £40k £40k £40k £40k £40k £40k
  5. 5. Revenue - £10 Payroll - (£4.0) Other - (£4.8) Profit - £1.2m EBITDA 12%
  6. 6. Average PROFIT Per Employee - £12k £12k £12k £12k £12k £12k
  7. 7. Ideas....
  8. 8. Amroze Technology £1m+ Marketing Expenses
  9. 9. Buy Buy Again
  10. 10. Stephen Fox CEO of Amroze Technology
  11. 11. Engaged Unengaged Disengaged 29% 54% 17%
  12. 12. Engaged Unengaged Disengaged 29% 54% 17%
  13. 13. Engaged Unengaged Disengaged 29% 54% 17%
  14. 14. Revenue - £11 Payroll - (£4.0) Other - (£5.0) Profit - £2.0m EBITDA 18%
  15. 15. Engaged Unengaged (Middlemen) Disengaged
  16. 16. Sarah Sally George Michelle David Amanda +
  17. 17. Enterprise Mentoring Line-Managers take responsibility for the personal development of their teams
  18. 18. Commercial Acumen Self-Belief Habits Actions Knowledge Decisions Language Attitude Abilities Leadership Ability Behaviours Understanding Beliefs Skill Set Mindset Thinking Customer Focus Confidence Business Understanding
  19. 19. Sarah Sally George Michelle David Amanda +
  20. 20. > Personal Leadership > Customers > Teams
  21. 21.
  22. 22.
  23. 23. Idea Portal
  24. 24. Stephen Fox CEO of Amroze Technology
  25. 25. Learn about our workshops at