The ultimate goal of any entrepreneurial endeavor is to make a profit. A businessman or company uses the complex necessary resources: goods, raw materials and materials, energy sources, property and technical means, new technologies, labor and services of various organizations.
To obtain a positive result, it is necessary to accurately determine economical effect from using all the elements of these resources.
What is it, why count
Every employer dreams that the staff he hires to do as much work as possible in a shorter period of time. For average calculation of the efficiency of the workforce indicators of labor productivity are used.
The most objective will be the assessment of the fruitfulness of the work of workers performing homogeneous work in similar conditions. In this case, in the analysis, you can see how many operations, parts, units the employees perform, that is, count in kind: how many one person has produced products per hour, shift, month, or how much time it takes for him to manufacture a unit of production.
During production and execution various works their volume is calculated in value terms, which to a certain extent reduces the accuracy of the calculation.
What is the practical meaning of these indicators?
- Comparison with planned, baseline or actual previous periods helps to find out whether the efficiency of the work of the team as a whole and of individual structures of the enterprise has increased or decreased.
- Allows you to assess the potential workload on employees and the ability of the enterprise to fulfill a certain volume of orders within a specified period.
- Helps to clarify the size of the usefulness of the introduction of additional technical means and the use of new technologies. This is done by comparing the average performance of an employee before implementation and after the application of technical innovations.
- Based on the analysis of the data obtained, a personnel incentive system is being developed. The amount of bonuses and incentives will be calculated correctly if it ensures the corresponding growth in the company's revenues and profits.
- The analysis also reveals specific factors that positively and negatively affect labor intensity. For example, interruptions in the supply of spare parts, raw materials and materials, frequent breakdowns of equipment, insufficient organization of labor in the shop or at the enterprise. If necessary, the timing of working hours is added to such an analysis and appropriate adjustments are made to the rationing of the work of individual departments and the work of middle and top managers.
You can see detailed information on calculating this indicator in the following video:
Formulas and calculation examples
Generalized formula for labor productivity:
P = O / H, where
- P is the average labor productivity of one employee;
- О - the amount of work performed;
- H is the number of employees.
Such an indicator characterizing how much work one person performs for a selected period (hour, shift, week, month) is also called elaboration.
Example 1. In January 2016, the fashion studio completed 120 orders for sewing outerwear (jackets). The work was carried out by 4 seamstresses. The productivity of one seamstress was 120/4 = 30 jackets per month.
Reverse indicator - labor intensity- determines how much labor (man-hours, man-days) is needed to produce a unit of output.
Example 2. In December 2015, the workshop of the furniture factory produced 2,500 chairs. According to the time sheet, the staff worked 8,000 man-hours. It took 8000/2500 = 3.2 man-hours to make one chair.
To determine the productivity of the workshop, structural unit plant, factory for the period (month, quarter, year) the formula is used PT = oC / cfr, where
- PT is the average labor productivity of one employee for the period;
- оС - total total cost finished products over a period;
- cp - shop workers.
Example 3. The metalware workshop in November 2015 produced finished products at total amount 38 million rubles. The average number of employees was 400 people. 63,600 man-hours worked. In December 2015, products worth 42 million rubles were manufactured, and the average headcount was 402 people. 73560 man-hours worked.
Production per person:
- In November, it amounted to 38,000 thousand rubles / 400 = 95 thousand rubles.
- In December 42,000 thousand rubles / 402 = 104.5 thousand rubles.
The growth rate of labor productivity in the shop was 104.5 / 95 x 100% = 110%.
Labor intensity for the manufacture of finished products in the amount of 1 million:
- In November: 63,600 man-hours / 38 million rubles = 1673.7 man-hours,
- December: 73,560 man-hours / 42 million rubles = 1,751.4 man-hours.
A qualitative analysis of labor indicators makes it possible to optimize the total number of employees, their placement, to identify existing shortcomings and reserves in the organization of labor and the need for technical improvement of work processes.
To find out how effectively a company or a team is working, you need to conduct analysis of labor productivity. Knowing this relative indicator, you can estimate how successfully employees (departments, workshops, groups) are working, and also plan various values for the future in numerical form.
Introductory information
Labor productivity (PT) shows the efficiency of an employee's labor costs for a certain / given unit of time. For example, one locksmith can grind 5 parts in an hour. This helps to plan - you can calculate that in 8 hours of work, a worker will make 40 blanks, and 10 workers - 400.
The formula for calculating labor productivity will help determine the efficiency of a group or workshop
This indicator can be determined according to two principles:
- Labor intensity.
- Development.
The higher this indicator, the greater the volume of production. That is why the leader must understand that is labor productivity and how to achieve the highest PT value possible. Ultimately, this will lead to substantial savings for the enterprise and a reduction in the cost of production.
How to calculate
In order to calculate productivity, you need to know two values: the number of workers and the number of products produced. Roughly speaking, the ratio of the volume of goods produced to the number of workers employed in the process is labor productivity. It is necessary to take into account all employees involved in one working day. The number of employees is then added up and divided by the estimated number of days. In order to make the correct calculation, you just need a standard accounting statements... You need revenue and labor numbers.
Indicators of PT
The three main indicators of labor productivity are:
- Performance Index.
- Labor intensity.
- Development.
Let's see how they differ.
Production shows how much production can be made by one worker per unit of time. The following factors affect production: the average number of employees in the department / workshop and the time they spend.
Production and labor intensity are the most important indicators of labor productivity
The labor intensity factor shows how much labor a worker needs to do to produce a part. With such a calculation, the PT will be inversely proportional to the output. It can be calculated using the formula Tr = T / Q, where Tr is the labor intensity, T is the time spent and Q is the volume of production in units. The second option: Tr = H / Q, where H is the average number of personnel.
The productivity index is calculated using the formula (Q * (1 - Kp)) / (T1 * H), where Q is the sales volume, Kp is the average downtime rate, and T1 is the total labor costs of the employee. This method is considered the most effective and detailed.
Note:when calculating the PT for one employee, it is necessary to take the average headcount indicator per unit.
Knowing the efficiency of labor for one person, the entire shop or department, you can just calculate the amount of products produced.
How to calculate PT
The formula for calculating labor productivity will allow you to find the performance index. This can be done in two ways:
- By labor intensity ΔПТ = [(Tro - Trb) / Trb] * 100%.
- For production ΔПТ = [(In - Wb) / Wb] * 100%.
In these formulas, PT is labor productivity in percentage, Тро - reporting labor intensity, Trb - basic labor intensity, Wb - basic production.
Using the formula ΔПТ = [Ech / (Chr-Ech)] * 100%, you can find how much labor productivity will change by saving the number of workers. Here Chr is the number of workers, and Ech is an indicator of the economy of the number.
If the enterprise produces many different products with different labor intensity, then it is necessary to determine the average PT according to the formula Vp = ΣQi * Ki. Here Vp is the average productivity, Qi is the volume of products produced (more precisely, of each type of product), and Ki is the coefficient of labor intensity. To find it, select the product with the lowest labor intensity and take it as a basis (equate to one). For the rest of the products, divide their labor intensity by the basis and you will get this coefficient.
Labor productivity formula for one worker: PT = (Q * (1 - Kp)) / T1.
The productivity ratio helps you optimize your workflow and reduce costs
What is all this for?
Having learned the indicators of labor productivity, you can analyze in detail the efficiency of the enterprise. Due to the labor intensity and development, the work of employees is evaluated. Having studied the PT indicators, in most cases you can find how to optimize the process, save work time and reduce the number of employees by reducing the salary fund.
By calculating the performance index, you can compare how much the performance of a department, workshop or company as a whole has changed over a certain period of time.
Note:labor productivity is not only the qualifications of employees, but an overall indicator of work efficiency.
This must be understood and realized before how to calculate labor productivity ... That is, one worker per shift can make 10 parts if nothing distracts him. In the event that he has to constantly run to another workshop for raw materials, and then take the processed product to the warehouse, then he makes 7 parts. Your task will be to organize the process as efficiently as possible, so that employees do not have downtime and they do not need anything. Low efficiency can be due to old equipment, poor equipment or working conditions, inconvenient routines, etc.
In contact with
Production is the basis of any economy, but this honorable role is assigned not to all production, but only to profitable production. Labor productivity - the most important factor, this profitability is defining. Accordingly, an understanding of how such an indicator is calculated is necessary not only for accountants and economists, but also for managers at all levels. And, of course, you need to know how to calculate labor productivity individual entrepreneurs- after all, they invest their own labor to ensure the profitability of their own company.
Why is labor productivity so important?
The fact that labor made a man out of a monkey, if not proven with one hundred percent probability by scientists, looks at least plausible. To the extent of its historical development a reasonable person regularly tries to do so in order to work less and get more. It is this approach that ensures the growth of labor productivity. And this is especially important in modern world, where one able-bodied person with his work (we are talking about the direct production of a new product) literally contains up to 11 people - pensioners, children, persons with disabilities... An economy built on this principle, despite its efficiency, is not very stable - this is why labor productivity in economic theory has long denoted much more than just the amount of manufactured goods per unit of time. However, this indicator, called the natural productivity of labor, has not been abolished and still plays crucial role in economic analysis.
PT (labor productivity) = OVP (volume of output for reporting period) / NPP (average number of production personnel).
This formula needs a number of explanations.
- The release of products is calculated in natural units (piece, packaging as a whole, and so on).
- The denominator indicates the number of production workers, that is, the number of administrative personnel, technologists, engineers is not taken into account.
- Even in organizations where, as such, goods are not produced, such an indicator is still used, since there may be many employees, whose work is productive. For example, a packer in a supermarket collects a new one from several products (actually a product, packaging, sticker), which receives additional value. Accordingly, the labor productivity of such an employee needs to be calculated, because in the process of work he applies labor skills, uses labor tools.
So, labor productivity is the basis of everything. And it is important and necessary to calculate it. But no metric has any value until it is practically applied. That is why the so-called rationing of labor is carried out at enterprises - the distribution of working time by operations and / or production.
Rationing is the most important method of increasing profitability by increasing labor productivity
To carry out the correct rationing of labor, it is necessary to know the labor intensity (the average expenditure of working time per unit of output) - both of the goods themselves and of each of its components.
To determine this indicator, you need the amount of working time in production cycle for the reporting period, divided by the ORP for the same period. In addition, for the correct rationing of labor, one more important parameter is needed - you should know how to calculate the productivity of one employee. The peculiarity of the indicator is not natural (in pieces), but monetary expression, respectively, in the numerator of the fraction is not the ORP, but the net profit. The resulting value is convenient to use for the distribution of "carrots and sticks" - rewards and fines for conscientious and not very work.
The very process of labor rationing is rather complicated, since there is always a great risk of insufficiently taking into account the notorious human factor (fatigue of workers, moral fatigue due to an unfavorable psychological climate in the team, and so on). If the top management of the organization finds this procedure unbearable (and the ability to adequately assess their own capabilities is the key to the success of the manager), then it makes sense to invite a qualified specialist who is engaged in labor rationing. True, in our country, such are still "worth their weight in gold", but if you wish, a good "rationer" (for example, from among the retired production workers) can be found.
There are two basic principles that are guided in the process of labor rationing.
- If the labor is simple (like that of the already mentioned packer), then it is advisable to ration according to aggregated indicators, for example, to establish the volume of goods that this packer must process per shift.
- Difficult work, however, must be rationed by operation. And the smaller the individual task, the better. Otherwise, there is a great risk of getting defective products: the love of a Russian person to work in an emergency mode after prolonged inactivity has long gone down in history.
In order for labor rationing not to give the opposite result, it is imperative to fulfill a number of conditions.
First, it is necessary to control the time fork. It works like this: a certain optimum of time is established, during which a certain amount of work should approximately be completed. If no one fits into it, you need to hire additional workers. All exceed it - to intensify labor.
Secondly (and this is the main thing), if the labor is complex (for example, the production of electronics), then the rewards for the excess output with the proper quality of the product should significantly exceed the penalties for under-production and rejects.
How can you calculate labor productivity from the balance sheet?
Labor productivity can be determined based on the indicators reflected in balance sheet... This can be useful for pre-contract work.
To get the required value, the same formula for calculating labor productivity is used. The value of the average number of production personnel is in the balance sheet - and it is put in the denominator. But the numerator is the indicator of the volume of work performed - also from the balance sheet. The final result is called actual labor productivity.
Now the so-called trend index can be calculated. To do this, you need to take from the balance the value of the planned labor productivity, subtract the actual labor productivity from there and divide the resulting result again by the actual productivity. The result of the calculations is very important indicator, actively used by economists and managers.
In addition to the types already considered, the cash and potential labor productivity is also distinguished. These indicators are not considered key - they act in to a greater extent as guidelines for further building the production and management strategy of the company. The first parameter demonstrates what labor productivity can generally be “in a vacuum” - in ideal market conditions, without downtime, interruptions and no lag between the appearance of finished products and their sale. And the potential labor productivity is the available productivity not only in an ideal market, but also in an ideal enterprise with the best personnel, technologies, materials, and equipment.
All of them are quite simple, but at the same time, the following nuances must be taken into account in the calculations:
- The volume of manufactured products is calculated in units of manufactured goods. For example, for shoes - a pair, for canned food - cans, etc.
- Only the personnel involved in the production are taken into account. So, accountants, cleaners, managers and other specialists who are not directly involved in production are not considered.
Balance sheet calculation The basic calculation formula is balance sheet calculation. It helps to calculate the productivity of the enterprise as a whole. To calculate it, the main value is taken the amount of work indicated in the financial statements for a certain period of time.
Key indicators and formula for calculating labor productivity
The formula looks like this: PT = ORP / NPP, where:
- PT - labor productivity;
- ORP is the volume of products produced;
- NPP is the average number of workers involved in the process.
For example: the enterprise produces 195,506 machines per year, the average number of employees is 60 people. Thus, the productivity of the enterprise will be calculated as follows: PT = 195 506/60 = 3258.4, which means that the productivity of the enterprise for the year amounted to 3258.4 machines per worker. Calculation of productivity by profit You can calculate productivity based on the profit of the enterprise.
Thus, you can calculate how much profit a company brings in a given period.
Labor productivity formula
Attention
In general, for a communications enterprise, it is impossible to calculate the output in kind, since the enterprise performs a wide variety of works and services, therefore it is measured in monetary terms. The total volume of sold products of a communications enterprise is reflected in the received revenue, therefore, when calculating labor productivity for a communications enterprise as a whole, the indicator of revenue from product sales is used. Average annual or average monthly output (labor productivity) for the enterprise as a whole is calculated using the formula Average daily or average hourly output is calculated using the formula Labor productivity growth makes it possible to produce additional output or perform additional work with the same or even fewer employees.
Methods for calculating labor productivity
For example, in 2010, the share of American material production in Country GDP turned out to be less than 20%! Hence, it becomes obvious that the productivity of an engineer and analyst is determined by other criteria that are different from those relevant to the industrial worker. For them, indicators of qualification in use are relevant special programs, access to reference data. Also, their performance is influenced by the competence of the leadership and the coherence of the work team.
As for the management level, the most important criteria are knowledge of the characteristics of the entrusted enterprise and the manager's experience. Labor productivity. Formula 2 For greater relevance of the formula for determining labor productivity (P), we will introduce labor costs into its composition, as well as the downtime factor.
Labor productivity indicators and calculation methods
Labor productivity is characterized as one of the baseline indicators reflecting the real performance of the company's personnel. Being relative indicator, labor productivity allows you to compare efficiency different groups employed in the production process and plan the numerical values for subsequent periods. Contents: 1. The concept of labor productivity 2. Calculation algorithm 3.
Indicators 4. The formula for calculating labor productivity 5. Analysis The concept of labor productivity Labor productivity characterizes the effectiveness of labor input per unit of time. For example, it shows how many products a worker will produce in an hour.
In an enterprise, productivity is measured in terms of two basic metrics:
- production;
- labor intensity.
They are the most appropriate when assessing the degree of efficiency of labor costs per unit of time.
The conditional (relative) saving in the number of employees due to the growth of labor productivity is determined by the formula The conditional average number of employees in the planned year shows how many employees would be needed to obtain the planned revenue, provided that labor productivity does not increase, but remains at the level of the current year; calculated by the formula Based on the data of example 1.8, we define the conditional number of employees using the formula (1.13): Rusl = 5565 / 8.83 = 630 people. The conditional economy of the number is determined by the formula (1.12): Channel = 630 - 608 = 22 people. If the enterprise did not plan to increase labor productivity, then to obtain the planned revenue it would take 630 people of the average number of employees, but due to the increase in productivity it is planned to save money, that is, not to involve additionally 22 people in production.
Tasks in economics on the topic: calculate labor productivity and labor intensity
The amount of bonuses and incentives will be calculated correctly if it provides a corresponding increase in the company's revenues and profits.
- The analysis also reveals specific factors that positively and negatively affect labor intensity. For example, interruptions in the supply of spare parts, raw materials and materials, frequent breakdowns of equipment, insufficient organization of labor in the shop or at the enterprise. If necessary, the timing of working hours is added to such an analysis and appropriate adjustments are made to the rationing of the work of individual departments and the work of middle and top managers.
You can look at the following video for detailed information on calculating this indicator: Read about how to correctly calculate the profitability of an enterprise in this article.
If you are interested in how to register your trademark, please see this material.
How to calculate labor productivity in an enterprise?
Production can be defined as the quotient obtained from dividing the volume of manufactured products (O) by the time spent on its production, calculated by the living labor expended (T) (see formula 1). B = O / T (1) Labor intensity is the reciprocal of production, that is, it shows how much time an employee should spend on making products of a certain value (see formula 2.). W = T / Q (2) It should also be clarified that the volume of manufactured products is calculated in value (the most universal, widespread), natural, conditionally natural and labor form.
In the extractive industry, the natural form prevails, in light industry- conditionally natural. The labor method uses a technique when the actual time spent is compared with the standard time.
Labor productivity
Labor productivity is a measure of the effectiveness, efficiency of a person's labor. Labor productivity is expressed by two indicators: the output of one worker and the labor intensity of a unit of output.
- Production is the volume of products produced by one worker per unit of time (hour, day, month, year).
- The labor intensity of a unit of output is the amount of time spent on the production of a unit of output.
Therefore, we can say that labor productivity is the volume of output produced by one worker per unit of time or the time spent on the production of a unit of output. Indicators of labor productivity can be calculated both at an individual workplace and on an average for an enterprise.
Production at individual workplaces, in areas producing homogeneous products, is measured in physical terms, that is, in the number of product units.
Labor productivity. its indicators and measures
This indicator reflects the growth rate of productivity and is found as follows: for production: ΔPT = [(In - Wb) / Wb] * 100% for labor intensity: ΔPT = [(Tro - Trb) / Trb] * 100%
- where In - production output in the reporting period;
- Wb - production output in the base period;
- Tro - the labor intensity of the product in the reporting period;
- Trb - the labor intensity of the product in the base period;
- PT is the index of labor productivity in percent.
The change in productivity can be found through the planned savings in the number of personnel using the following formula: ΔPT = [Eh / (Chr-Eh)] * 100%,
- where Ech is the planned saving in the number of personnel;
- Chr - the number of workers (employees employed in the production process).
The indicator of average labor productivity is necessary in the case of a large number of manufactured products with different labor intensity.
Determine the growth of labor productivity formula
It relies on the assessment of labor productivity, analyzing it in many ways. The investor must know in advance what costs will be incurred by the company he founded in its production cycle. Therefore, it is advisable for him to assess what costs he will incur for 1 ruble of production.
Accordingly, the above formula will be expanded due to the indicators referred to the unit cost of production: KZ (capital expenditures); EZ (operating costs); P (repair costs); OT (labor payment); H (taxes and mandatory payments); Dp (other expenses (administrative, other). P = (O * (1 - Kpr)) / (Z * T1 * H) = (O * (1 - Kpr)) / ((KZ + EZ + P + OT + N + Dp) * T1 * H) Managers' strategies to increase labor productivity Consideration of the economic characteristics we are studying in the context of microeconomics assumes a multifactorial environment.
Determine the growth of labor productivity formula
Important
Labor productivity formula In this article I want to tell you about various formulas for calculating labor productivity. A person works in order to create various goods, such as services or products. First, let's define why we need to try to increase labor productivity.
One of the most important criteria for assessing the effectiveness of one or a group of workers is the productivity of their labor. After all, the higher the productivity of labor, and therefore the production of a unit of goods per unit of time, the less costs are spent per unit of result. Any good, product or service produced by a person is his living, concentrated, materialized labor.
Let's define living labor. Living labor is labor carried out by a person, spending energy measured in calories. Living labor is divided into mental and physical.
Labor productivity shows how much output the company produces per unit of time. Or how much time is spent on the release of a unit of goods. How to calculate and analyze the indicator, read on.
What is labor productivity
Labor productivity in the economy describes the efficiency, productivity of any activity, enterprise, device. Can characterize the effectiveness of an individual in his personal activities, or as an employee of the company.
Labor productivity is used:
- To assess the economic success of a country, industry, enterprises within one or different industries.
- For planning within the company.
- To assess the actual situation in order to improve the success of the company.
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Labor productivity formula
What is the productivity of labor at the enterprise? The ratio of the product of labor to labor costs.
Labor productivity = Product of labor / Labor cost
Main indicators of labor productivity
Most often, such indicators of labor productivity in pre-production are used as production and labor intensity.
Production
Development uses a natural (conditionally natural) method, labor, cost methods. It is calculated as the ratio of the volume of production to the number of employees or as the cost of production per unit of time. The volume of production can be in kind, in value terms, or in standard hours.
Formula for calculating production:
where B is the output,
Q is the volume of production,
T is the amount of working time.
How to analyze labor productivity and compile a report
If you need to assess the efficiency of production departments and compare it with costs, a labor productivity report will help. See in what order to draw up the report and what indicators to fill it with.
Labor intensity
Labor intensity is the ratio of labor costs per unit of labor product. For example, the ratio of the amount of working time to the volume of production.
The formula for calculating the complexity
where Tr is the complexity,
T is the amount of working time,
where P is the labor productivity of one employee,
О - the number of units of products produced by the employee for the period,
T is the duration of the period.
Labor productivity. Balance calculation formula
To calculate the indicator, you can use balance sheet data, for example, the volume of products produced.
PT = (V * (1 - Kp)) / (T * N)
Where V is the volume of products produced according to the balance sheet (line 2130);
Kp - Downtime ratio
T - labor costs of one employee
N is the average number of employees.
An example of calculating labor productivity
Let's look at an example. The company produces various footwear: galoshes, shoes, felt boots. Based on the data, management reporting, and reporting of the personnel department will calculate the output and labor intensity of labor productivity for several reporting periods. These are management accounting data on the quantity, quantity of working time spent on the production of certain types of products. Also, for the purpose of further calculations, the cost price was recalculated into base prices.
Table 1... Data for calculating labor productivity
|
Indicators |
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|---|---|---|---|
|
Number of galoshes produced, pcs. |
|||
|
Number of shoes produced, pcs. |
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|
Number of boots produced, pcs. |
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|
Cost of galoshes produced, rubles |
|||
|
The cost of the produced shoes, rub. |
|||
|
The cost of the boots produced, rubles |
|||
|
The number of working hours for the production of galoshes, hour |
|||
|
The number of working hours for the production of shoes, hour |
|||
|
The number of working hours for the production of felt boots, hour |
Based on the data of the personnel department on the number of production and management personnel, we will calculate the output.
table 2... Calculation of labor productivity
|
Indicators |
February, in basic prices (to January) |
||
|---|---|---|---|
|
Number of employees for the production of galoshes, people |
|||
|
The number of employees in the production of shoes, people |
|||
|
Number of employees for the production of felt boots, people |
|||
|
Average number of production workers |
|||
|
Average number of general production workers |
|||
|
Average number of managerial workers |
|||
|
Average number of workers at the enterprise total |
|||
|
Production of galoshes, pcs / hour |
|||
|
Production of shoes, pcs / hour |
|||
|
Production of felt boots, pcs / hour |
|||
|
Production of all production personnel, in rubles / person. |
|||
|
Development of all personnel, in rubles / person |
Based on these data, we see an increase in the production of galoshes and shoes and a decrease in the production of felt boots. However, the analysis showed that the production of galoshes per hour decreased. This indicates a decrease in labor productivity. The production of shoes has increased. And the output per hour of felt boots has more than doubled. At the same time, the number of employees in the production department wearing felt boots decreased. More detailed analysis showed that this change is associated with the renewal of equipment for the manufacture of felt boots, which made it possible to reduce the number of employed personnel and significantly increase the productivity of the production line. At the same time, taking into account other changes, the production of production personnel, measured in value terms, increased from 15.83 rubles / person to 19.23 rubles / person. However, if we exclude the factor of price inflation, then this value in February was only 16.27 rubles / person. But the output of the enterprise, taking into account all employees, decreased from 10 rubles / person. up to 9.42 rubles / person (at basic prices by January). This happened, including due to the increase in the number of management personnel, although the average number of personnel did not change in total and amounted to 19 people (see also, calculation of the average number of employees).
How to increase labor productivity
There are two ways to increase productivity: an increase in the technical equipment of production and an improvement in the organization of labor. Moreover, in some cases, the second factor turns out to be more important than technology. Therefore, it is important to organize the correct billing of work and reasonable work rate setting.
You can use a piece-rate bonus system of remuneration of workers, focused on increasing productivity. With the help of it, it is possible to maintain the stability of production, achieve the planned level of production, and also strictly regulate the actions of personnel. The enterprise has the ability to increase production or reduce the number of employees by increasing productivity, and workers have an incentive to increase output.
Piece-rate wage system gives management the opportunity to establish the relationship between output and labor costs. If demand changes, along with it, the volume of output will be proportionally adjusted, as well as the specific weight wages per unit of production. This allows you to keep the marginal profitability at a constant level. The advantages of the piece-rate system include the relative simplicity of calculations. An increase in labor productivity is a reduction in working time for the manufacture of a unit of production. This means that labor intensity (time for the release of a unit of output) is a measurable, manageable and transparent value for the worker; it is closely related to the growth of his labor productivity.
How often to evaluate labor productivity in a company
It is advisable to assess the labor productivity of personnel no more than once a month. More frequent assessment is warranted in companies whose activities are highly seasonal. Then it is necessary to track labor productivity in the months with the maximum (peak) and minimum load: weekly or ten days.
The frequency of preparation of the report is also affected by the turnover of staff. If it exceeds 5 percent, then labor productivity should be assessed at least once a month.
In enterprises whose work does not depend on seasonality, and staff turnover is within the normal range, an assessment of labor productivity should be carried out once a quarter.
To assess the effect of modernization, the use of new technologies and other changes in the production environment, it is necessary to assess labor productivity in dynamics monthly or more often (ten days, weekly).
conclusions
Often, the owners and managers of the company are interested in the indicator of labor productivity from the point of view of planning the activities of the company, or as a marker for assessing the required number operating enterprise when changing the structure, assortment of production.
Labor productivity indicators allow for a better analysis of the current situation at the enterprise, to understand the factors of changes in production, the number of employees, the amount of time spent. And to identify resources to increase the efficiency of production activities.
