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Profit Per Employee · Diagnostic

You've pulled every mechanical lever. What moves this number now?

Profit per employee is the most honest number on your P&L. Enter one year of inputs, then answer the four exposure groups. The output is a paragraph, not a score.

Step 1

Your number.

Most recent completed fiscal year.

$
$

Assuming you don't significantly change your approach to managing the workforce. Most users either accept the prefilled default for steady state, or enter a higher figure if they expect revenue growth to outpace headcount growth.

$
Step 2

Exposure.

Four groups. Ninety seconds.

Group 01

Drift exposure

If labor costs rise at inflation and your revenue growth matches last year's, how confident are you that your profit per employee will hold steady in 24 months?
Not confidentVery confident
%
Group 02

Competitive exposure

Which of these would put meaningful pressure on your profit per employee in the next 24 months?
If a competitor's profit per employee is 40% higher than yours, how quickly does that translate into pricing pressure?
Already happeningNo visible impact
Group 03

Execution exposure

In the last 24 months, which of these levers have you already pulled?
Of the levers you've pulled, how much more do you realistically think is available from the same playbook?
Fully exhaustedPlenty left
Group 04

Human exposure

Do you know, today, which of your managers are actively enabling their teams and which are actively blocking them?
How confident are you that you could name your five worst managers by impact on team output?
Not confidentVery confident
0 / 300

Your Cost per year

current opportunity cost or benefit at 24 months

What are you doing to influence this number sustainably, and how would you know if it was working?

Current path is your projected 24-month trajectory. Improved path adds the 20-25% productive capacity that Bain has documented is recoverable when organisational drag is addressed (Mankins and Garton, Time, Talent, Energy, 2017). This tool applies a conservative 15% recovery ceiling, moderated by your stated visibility into manager effectiveness. The five-year total extrapolates the year-2 run-rate forward at a constant level, with no further compounding past month 24.

You have mapped the exposure. The next step is measuring the lever.

Most executives cannot answer that question with data. They can answer it with instinct.

The phenomenon underneath this number has a name: silent degradation — the depletion of the conditions under which people perform, which does not appear on any dashboard. Across the eleven companies in the Q1 2026 cohort, the median annual loss runs to approximately $20 million.

The Manager Gap Index turns instinct into a quarterly trend line, six to twelve months ahead of where it shows up in the financials. It measures the one lever you have left.

Take the Manager Gap Index ›

Or, if you already know your exposure: schedule a 15-minute Cohort Conversation → with one of the founders.

This tool draws on research from Bain (Mankins and Garton, 2017), McKinsey Quarterly (Bryan and Joyce, 2007), and Gallup's State of the American Manager. The profit-per-employee metric itself was established by McKinsey as a better proxy for returns on intangibles than ROIC.