MANAGEMENT • PROFIT • SVETLANA TATAUROVA
How to determine which employees generate money for the business
How to determine which employees generate money for the business. A practical analysis for the owner: which figures to check, how to find the cause and choose the next managerial step.
Author: Svetlana Tataurova · Updated: 2026-09-26
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Quantify the problem
Typical starting situation: payroll is rising, but the contribution of roles is unclear. Don’t start with layoffs, discounts or increased advertising. First, establish a comparison period and check revenue, margin, utilization, quality and the cost of the function. The same external problem may have different causes.
Separate symptom from cause
A decline in cash on the account does not always mean a decline in profit, and rising sales do not guarantee improved economics. Reconcile sales, gross profit, fixed costs and cash flow. Then break down the result by products, channels, employees or locations — depending on the business model.
Check data quality
Before drawing conclusions, ensure that income and expenses are assigned to the correct periods, returns and discounts are accounted for, and metrics for different units are calculated consistently. If figures are compiled manually, selectively verify them against source transactions. A management decision based on incorrect data can worsen the problem.
Choose a targeted action
The practical next step is to evaluate a role by its results and economics, not just by employment. Every action should have an owner, a deadline and a success metric. Do not change prices, advertising, the team and the product at the same time: otherwise it will be impossible to know what actually influenced the result.
Set up regular monitoring
After a change, compare plan vs. actual every week using the same set of metrics. If results deviate, record the reason and the next action. The goal of the management system is to detect deviations earlier and make decisions before the problem turns into a cash shortfall or crisis.
When an external review is needed
If the owner cannot identify the cause of a deviation, the team disputes the numbers or decisions are constantly postponed, an independent audit is useful. For an initial review, anonymized metrics of sales, expenses, liabilities, team structure and a description of the main problem are sufficient; bank passwords and clients' personal data are not required.
Frequently asked questions
Where to start if there is little data?
Collect the minimum: revenue, gross profit, fixed costs, cash balance, mandatory payments and accounts receivable for comparable periods.
Do I need to implement a complex BI system right away?
No. First define the metrics and the rules for calculating them. Automation is useful after the management logic becomes clear.
How quickly can Svetlana assess the situation?
Prepare a description of the business, the main problem, the dynamics of sales and expenses, the team structure and upcoming obligations. That is sufficient for an initial diagnosis.
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