French luxury brand Hermès is not only renowned for its sought-after handbags like the elusive Birkin and Kelly, but it also takes the top spot as the champion of profit per employee in France. This is a testament to the maison’s unmatched economic performance and operational efficiency, in addition to their craftsmanship. While they may not yet rival behemoths like Saudi Aramco, who boast the highest profit per employee in the world, ($1.65 million per employee), there’s no denying they rule the roost on home ground, per Mediavenir. Hermès generates an impressive profit of $212,181 per employee, far surpassing other luxury brands like LVMH and L’Oréal, which generate $77,270 and $70,900 respectively. Compared to LVMH, Hermes employees make 175% more money.
Interestingly, Hermès has 22,000 employees, whereas giants like LVMH and L’Oréal have massive workforces of 213,000 and 94,605, per Mediavenir. For six generations, the employees of Hermès have been at the heart of the company’s business model, with their well-being a top priority in its operational strategy. Hermès sets an example for effective workforce management that can lead to substantial profits, even in highly competitive sectors.
In the face of global economic challenges, French companies continue to demonstrate their resilience and adaptability. Their ongoing success will be key to France’s economic prosperity in the years to come, strengthening their position in the global market. Proof of this lies in the luxury label’s market cap of $246.51 billion and its decision to pay all 22,000 employees an exceptional bonus of €4,000 ($4500) in February 2024 for their commitment and contribution to the company’s results.
