There are three ways to make more per employee. You can get better at making money. You can have fewer people. You can pay your people less.
So as a metric it's very context-dependant.
So as a metric it's very context-dependant.
If priority #1 is shareholder value, then doing all 3 of those makes sense.
If priority #1 is something other than money, then maximizing profit can lead to a negative impact on the true mission.
So I do agree it's context-dependant, but perhaps a slightly different context than you had in mind?
For example paying people less might impact your ability to improve your money stream. Similarly having fewer people may lead to some missed opportunities.