Google with its 20,164 employees generates annual revenue per employee of $1,093,892 and annual profit per...

Google with its 20,164 employees generates annual revenue per employee of $1,093,892 and annual profit per employee of $214,768. Convergys Corp. (CVG) 75,000 employees, on the other hand, is only able to generate annual revenue per employee of $38,855 and an annual profit per employee of -$1,344. Discuss the implications of the difference in RPE of Google and CVG. What can be the possible reasons for this difference?

Expert Solution

There are various reason why there is difference in RPE. Some of them are

The type of product made and sold by Google and CVG are different. CVG are mainly focused on services while Google is a product company. It means Google’s intellectual properties are more than that of CVG.

The employees that work at Google often take use high tech facilities and tools to build their product and services. They also invest heavily in their R&D. This is not the same with CVG. CVG is more manpower intensive while Google is technology intensive. This is where a single employee at Google may be able to contribute more than that of CVG.

The type of employees that work at Google are usually top tier employees. This is because as an employer Google is highly coveted among candidates. The demand for Google as an employer is more than that of CVG. This is why Google has their pick when it comes to talent pool.

keosha answered 5 months ago

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