ELI5: Explain Like I'm 5

Net income per employee

Let's say you and your friends are running a lemonade stand. You make $30 from selling lemonade, but you have 5 friends who helped you make and sell it. This means that you have to share the $30 with your friends.

Net income per employee is like sharing the money you make with your friends. It's how much money a company makes, but then it has to divide that money among all the people who work there.

So, let's say a store made $500,000 in a year. But there are 50 people who work there. The store would take the $500,000 and divide it by 50. This means that each employee helped make an average of $10,000 that year.

Net income per employee helps companies understand how much they're making for every person they employ. It also helps employees understand how much they're contributing to the company's success.