The hiring metric no one talks about
When I think back to times when I was really, really busy working in public practice, I remember thinking,
“This is ridic. Why doesn’t [insert boss’ name here] hire more people to help out?? We are all maxed out and can’t possible work another hour of overtime”
I was working 50-60hr weeks..
Feeling guilty for taking Sundays off..
Eating out every meal when all my body really wanted was a nap and a vegetable lol..
But now I get it.
My former employer was probably sitting tight because my coworkers and I hadn’t hit a really specific metric that is often the ‘tipping point’ for knowing when it’s time to hire.
It’s the point where:
There seems to be more than enough work to go around and people seem to be pretty busy, but it’s unclear if that’s due to a lack of clarity around “who does what” OR if people are genuinely at capacity.
Team members are saying “I’m too busy” but you’re not sure if that’s true (in the past, statements like this have really varied based on the person saying it… some people are able to handle a heavy workload while others seem to get stressed very easily)
Revenue has consistently ticked up over the past 2 quarters but you’re unsure if this is just seasonality or if this is real, permanent growth
I can see you’re scratching your head (lol) so let’s just dive in.
The specific metric that tells you exactly when you need to hire - based on big data - is called “revenue per employee”.
(I know - I’m on a bit of a tear with financial metrics right now, but stay with me lolll)
The reason this metric is key for hiring decisions is that it tells you exactly when it’s time to expand your team.
If your revenue per employee is higher than industry averages, you should hire STAT. Your people are overworked, bordering on burnout and likely not going to be able to continue at the current level for more than 3 - 6 more months. Believe them when they say “I’m at capacity”.
If your revenue per employee is lower than industry averages, you should consider focusing on improving your operations and your team so that they complete their work more efficiently. What does that mean?? Well, there is likely a lack of clarity around day-to-day duties, responsibilities, reporting structure, use of tech / AI, etc. In short, these are the dials that should be turned before you go on a hiring spree.
STEP 1 - calculate your revenue per employee
And tbh, step one of figuring out your revenue per employee is a super simple calc that you can do in about 10 seconds:
Total revenue
_______________________________________
Total number of full time equivalent people on your team
If you have a team made up of 10 advisors (including yourself), 2 admin staff, and 2 x 20hr/week subcontractors, you have 13 full time equivalents (10+2+.5+.5). With annual revenue of $1,950,000, your revenue per employee is $150,000 or:
$1,950,000
_______________________________________
13
Now, this might be a… ‘okay cool… but so what??’ moment for you. I see you.
And if this is as far as you go - as in, tracking the up/down of this calculation from month to month or even year to year - you’ll still be far ahead of most business owners.
STEP 2 - compare to industry benchmarks (AND A BIG CAVEAT)
In order to make a really good, timely hiring decision, you need to know what the average revenue per employee is for your business in Canada (aka this is step two).
Without that info, you can only track monthly or annual trends. But if you know the exact revenue per employee number you should be aiming for, you can have almost absolute confidence that when you post to Indeed (or hire me and Elanne to find a unicorn team member ;)), it’s the right move.
You’re getting the right ROI on your payroll expense, you’re expanding in a way that aligns with your strat plan, and you’re not just “panic hiring” because so-and-so complained they are overworked.
Caveat: I'm asking you to compare to industry benchmarks, but unfortunately, industry info on average revenue per employee is widely gate-kept by those in the accounting and consulting professions. I mean, I guess I can’t blame them/us - the info is a great reason to hire people like moi and it definitely informs how Elanne and I consult with our clients. Plus this info costs thousands of dollars a year to access.
But I choose to believe that the people in my community who benefit a bit from my free advice in this newsletter will see life-changing results in their business when we actually work together.
So, because you are a faithful newsletter subscriber, I’m sharing the average revenue per employee info for the most common industries I see in my consulting practice below. Enjoy!
REVENUE PER EMPLOYEE BY INDUSTRY
Accounting firms – $191,068
Bookkeeping / payroll firms – $248,326
Chiropractic clinics – $121,796
Dental offices – $162,044
Graphic design firms – $89,211
Insurance brokerages – $253,271
Interior design firms – $277,840
Law firms – $258,828
Optometry clinics – $248,326
Physiotherapy clinics – $145,933
Portfolio management / investment advice – $609,570
Real Estate Brokerages – $510,503
Source: IBISWorld Reports 2025
(PS - if I missed your industry hit ‘reply’, tell me your industry and I’ll send over the numbers for you)
Okay - you know your revenue per employee and your industry averages, and there’s a gap.. now what?
If reading the numbers for your industry sparked a bit of a "hmmmmmm that’s not great" response - kinda like, okay cool, I’m at $150K per employee, but how do I get to $250K like the industry average?? - that’s something that we can dive into inside of The Monthly Reset.
It’s a 1:1 strategy session where you bring what’s swirling around in your head (team issues, profitability questions, expansion ideas - whatever’s keeping you up at night), and we help you sort it out, focus in, and take action.
You’ll leave with clarity on the key issues in your biz, a clear implementation plan for solving those issues over the coming month, and the accountability you need to actually follow through on things.
Each session is led by me (a CPA) and Elanne (a former VP of Operations) so you’re not just getting stuffy, theoretical advice on your operating budget or general thoughts employee performance management..
You’re getting clear, actionable strategy that helps you increase your profit margin by doing stuff like:
getting clear on ‘who does what’ on your team (i.e. reducing role overlap),
ensuring you aren’t overspending on specific expenses relative to industry benchmarks (i.e. expense ratio analysis) and
focusing on growing strategically so that you don’t sacrifice your bottom line to grow your top line
You get:
One 75-min session/month where we talk about what’s going on in your business - team issues, profitability problems, AI fears, expansion plans, etc etc etc
A custom-written summary of your strategy session with clear action steps
A fractional leadership team that helps you think strategically about the future of your business and move faster toward your expansion goals through accountability
Investment: $600/month + GST for the first two clients (3-month commitment).
After that, the rate increases to $750/month.
So, if you’re sitting on decent numbers but aren’t sure how to move the needle - whether that’s getting from $120K to $250K per employee or finally hiring without second-guessing the additional cost - The Monthly Reset was built for you.
Send me an email to claim your spot.