Profitable Employees?

Question

What percentate of an employees wages should they bring in for your company to consider them "profitable"? - For instance if they make $1000 a month should they be bringing in $5000 a month to consider them profitable. I know that all jobs are different but Im looking at more of a sales rep job. Im really looking to get a general margin between wages of being profitable. Any Input or web sites with this info would be great!

Answer 1

Any amount over and above the employer's cost of an employee - wages, benefits, taxes, amenities (desk, phone, lights, heat, admin.asst., etc.) and equipment, material or anything else associated with the job, that would be considered more than break-even can be defined as "profitable".

I would estimate that most manufacturing companies look to achieve a profit margin of 5-15% of sales; while computer and pharmaceutical firms are not satisfied with anything less than 25-40%. (In the case of pharmaecuticals they need that profit to fund Research and Development (R&D) in order to put new products on the market.)