Calculation of labor productivity and ways to improve it

Everyone, perhaps, sooner or later understands that time is a limited resource, so spending it in vain is an unacceptable luxury. It's the same with companies. In order to achieve success and stay afloat, they simply need to strive for high performance indicators, and, therefore, constantly calculate the productivity of labor and seek means to increase it. To do this, it is necessary first of all to analyze the annual, day and hour output of one employee, as well as the labor intensity of a unit of output. Then analysts investigate the factors of labor productivity and make their conclusion about how the situation in the enterprise can be improved.

The employee's development is defined as the volume of products produced by him, the services rendered, and the work performed for a certain period of time. In order to calculate it, it is necessary to divide the enterprise's revenue for the given period into the average number of employees. Another indicator, without which the calculation of labor productivity is impossible, is the labor intensity of a unit of output. It is the amount of time it takes to produce a unit of a particular product. Calculate the amount of labor can be divided by revenue for the total cost of working time for production. Calculation of labor productivity can be carried out as a whole for the enterprise, and a separate workplace. It should be noted that different types of activities can only be characterized by labor intensity. For example, it is hardly advisable to evaluate the work of equipment tuners with the help of production, 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 worthwhile to think about some more points. For example, how to make the enterprise's activities even more effective, reduce labor input and increase output.

Forecast calculation of labor productivity is based on the following indicators:

• The planned percentage growth in output per person, as well as a reduction in the labor intensity of any of the manufactured goods.
• Relative (conditional) and absolute (real) savings in the number of employees.
• The share of the increase in output.

Factors to increase labor productivity include:

• The replacement of labor with capital, that is, the technical re-equipment of all production and the introduction of the latest achievements of technology in order to increase its efficiency.
• Intensification of work. The enterprise must implement administrative measures aimed at accelerating the performance of individual production tasks.
• Improving the organization of labor, eliminating production losses and searching for optimal methods for managing production processes.

With these factors, the enterprise can increase the rate of profit and reduce the share of labor costs in the cost of the product.