Number of Employees

Indicator Description

Employee typically refers to an individual working under a contract of employment, whether oral or written, express or implied, and has recognized his or her rights and duties. Most officers of corporations are included as employees and contractors are generally excluded.

Number of Employees 
 = 
Full Time 
+  
Part Time 

Number of Employees shows the total number of permanent full time and part time employees working for a given company and processed through its payroll.

Number of Employees In A Nutshell

There is not much to explain, but here are a few ways to use the number of employees in your research. First, if you are comparing companies within an industry, you can find ones that have the same number of employees to help ensure you are comparing apples to apples.

This one is fairly simple, but I’ll go over a few different ways to look at this data point. As simple as the title expresses, the number of employees are the total number of full time and part time employees. When looking at a business, this is an excellent way to get a sense of how large the company is.

Closer Look at Number of Employees

Secondly, using the number of employees can help gauge how the company is growing. If the company is not hiring more people, it could mean they are stagnant or losing market share to competition. Now it is important to note if management has stated they are no long expanding, then you do not want to see that number grow by large numbers each year.

Lastly, this could be a negative indicator if the company is going through a rough period and people are being laid off or fired. You want to see the number move in accordance to what the company believes is going to happen in the future. There will be rough points, but as long as the company is optimistic, do not look into the change numbers of employees too deeply.

This number is simple and usually over looked, but can be a great little glimpse into the health of the economy. Use it to compare the right size of companies, that way you are in the right area and ballpark, and comparing accurate data points. If you have ideas, bounce them off people in the investment community, getting real time feedback and adjustments.

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