Everyone, perhaps, sooner or later understands that time is a limited resource, so spending it in vain is an unacceptable luxury. Same thing with companies. In order to achieve success and stay afloat, they simply need to strive for high performance indicators, and, therefore, constantly make a calculation of labor productivity and look for ways to increase it. To do this, you must first analyze the annual, daily and hourly output of one employee, as well as the complexity of a unit of output. Then, analysts examine the factors of labor productivity and draw their conclusions on how to improve the situation at the enterprise.
The employee’s output is defined as the volume of products produced, services rendered, work performed over a certain period of time. In order to calculate it, it is necessary to divide the company's revenue for a given period by the
average number of employees. Another indicator, without which the calculation
of labor productivity is impossible, is the complexity of a unit of production. It represents the amount of time that must be spent on the release of a unit of a product. The complexity can be calculated by dividing the revenue by the total cost of working time for production. The calculation of labor productivity can be carried out both as a whole for the enterprise, and a single workplace. It should be noted that various
activities can only be described as labor intensive. For example, it is hardly advisable to evaluate the work of equipment adjusters with the help of development, their labor productivity is analyzed due to the labor intensity indicator, that is, the time they spend on troubleshooting. When the calculation
of labor productivity in the past period is over, it is worth considering some more points. For example, how to make the enterprise’s activities even more efficient, reduce labor intensity and increase production.
The forecast calculation of labor productivity is based on the following indicators:- The planned percentage of the increase in output per person, as well as a decrease in the complexity of any of the manufactured goods.
- Relative (conditional) and absolute (real) savings in the number of employees.
- The share of growth in manufactured products.
Factors for increasing labor productivity include:- The replacement of labor by capital, that is, the technical re-equipment of all production and the introduction of the latest technological achievements in order to increase its efficiency.
- Labor intensification. The company should implement administrative measures aimed at accelerating the implementation of individual production tasks.
- Improving the organization of labor, eliminating production losses and finding the best methods for managing production processes.
Using these factors, the company can increase the rate of profit and reduce the share of labor costs in the cost of the product.