The ultimate goal of any entrepreneurial endeavor is to make a profit. A businessman or enterprise uses a complex of necessary resources: goods, raw materials, energy sources, property and technical means, new technologies, labor and services of various organizations.

To obtain a positive result, the economic effect from the use of all elements of these resources must be accurately determined.

What is it, why count?

Every employer dreams of the staff he hires to do as much work as possible in a shorter period of time. For average calculation of the work efficiency of the workforce labor productivity indicators are used.

The most objective assessment will be the productivity of labor of workers performing homogeneous work under similar conditions. In this case, in the analysis you can see how many operations, parts, components are performed by employees, that is, calculate in physical terms: how much one person produces in an hour, shift, month, or how much time he needs to produce a unit of product.

When producing and performing various works, their volume is calculated in monetary terms, which to a certain extent reduces the accuracy of the calculation.

What is the practical meaning of these indicators?

• Comparison with the planned, baseline or actual indicator of previous periods helps to find out whether the labor efficiency of the team as a whole and individual structures of the enterprise has increased or decreased.
• Allows you to assess the potential load on workers and the ability of the enterprise to fulfill a certain volume of orders within a specified period.
• Helps to determine the extent of the usefulness of introducing additional technical means and using new technologies. To do this, the average employee output is compared before and after the implementation 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 a corresponding increase in revenue and profit of the enterprise.
• 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 workshop or enterprise. If necessary, the timing of working hours is added to this analysis and appropriate adjustments are made to the standardization of labor of individual departments and the work of middle and senior managers.

You can see detailed information about calculating this indicator in the following video:

Formulas and examples of calculations

Generalized formula for labor productivity:

P= O/H, Where

• P is the average labor productivity of one employee;
• O — completed amount of work;
• N — number of employees.

This indicator, which characterizes how much work one person performs during a selected period (hour, shift, week, month), is also called production.

Example 1. In January 2016, the fashion studio completed 120 orders for sewing outerwear (jackets). The work was carried out by 4 seamstresses. The labor 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 product.

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 labor productivity by workshop, structural unit of a plant, factory for a period (month, quarter, year), the formula is used PT=оС/срР, Where

• PT - average labor productivity of one employee for the period;
• ОС is the total total cost of finished products for the period;
• sr - shop workers.

Example 3. In November 2015, the metal products shop produced finished products totaling 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. 73,560 man-hours worked.

Output 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 labor productivity growth rate for the workshop was 104.5 / 95 x 100% = 110%.

Labor intensity for the production of finished products worth 1 million:

• In November: 63,600 man-hours / 38 million rubles = 1,673.7 man-hours,
• In December: 73,560 man-hours / 42 million rubles = 1,751.4 man-hours.

Qualitative analysis of labor indicators makes it possible to optimize the total number of workers, their placement, identify existing shortcomings and reserves in the organization of work and the need for technical improvement of work processes.

Every business operates with the goal of making a profit. Therefore, special departments monitor the compliance of all financial and economic indicators with the requirements of the developed plan. There are many methods for comprehensively assessing the efficiency and profitability of an organization. One of the important stages of the study is the analysis of labor productivity.

Based on the data obtained, the company's management can find factors limiting development and develop measures to eliminate them in the future. Therefore, analysts carefully monitor the dynamics of this indicator. How is labor productivity measured, and how to interpret the results obtained? All this needs to be considered in more detail.

General information

Labor productivity indicators make it possible to realistically assess the performance of the enterprise's workforce. This is an important stage in researching the profitability of a company. Labor productivity at an enterprise is an economic category that reveals information about the appropriateness of the team’s activities in the production of material or spiritual goods.

Moreover, quantitative measurement of the team’s performance is carried out over a certain period of time. This could be a shift, an hour, a month, a week or a year. When asking the question of how labor productivity is measured, it is necessary to understand the mechanism for calculating this category. Labor productivity is a relative expression of the output created by a worker per unit of time. If we consider the number of finished products made by one person, this indicator will be called output.

Scorecard

At the enterprise, labor productivity indicators are measured using two categories. This is production and labor intensity. They are opposite quantities. Their tandem allows you to look at performance from two opposing points of view.

Output is calculated as the ratio of the total quantity of finished products to the average number of employees. Labor intensity, on the contrary, shows how many material goods one worker produced during the period studied. Therefore, the average number of employees in this case is divided by the volume of their labor.

These two indicators are calculated in standard hours, cost, natural or conditionally natural terms. Depending on the purposes of the analysis, one or another calculation system is used.

Calculation formula

When performing a performance analysis, a financial manager applies a simple formula. This is a basic model that allows you to assess the state of the indicator in the reporting period. It is calculated like this:

Pt = OR/CR, where Pt is labor productivity, OR is the volume of work performed during the study period, CR is the number of workers on the list.

In foreign practice, it is common to define productivity taking into account the costs of other resources. At the same time, along with the total payment of workers' salaries, other resources (land, fixed and working capital) are taken into account.

Moreover, the opinions of researchers are somewhat divided regarding which categories of workers should take part in the calculations. Some argue that only employees of the production sector. Others add service personnel and non-production workers here.

Index system

To more deeply track the dynamics of changes in the presented indicator, the labor productivity index is used. Statistics distinguishes in this case between groups of methods. Indices can be labor, natural or cost.

To study the dynamics of average output, which was observed under the influence of certain factors, a system of aggregate indices is used. This is a deeper type of analysis. In it, the indexed indicator is the value of labor productivity of each department.

The number of these units acts as scales in such a system. Each site and employee have different labor productivity. Thus, it is possible to determine how much a specific unit contributes to the overall result.

What influences labor productivity?

To improve the efficiency of the indicator in the future, it is necessary to know the factors that influence the decrease or increase in labor productivity. They are internal and external. The latter include natural phenomena (indicators fall in bad weather), political changes, and general economic factors.

Internal reasons for changes in productivity levels can also be quite significant. These include the use of automation, mechanization and other scientific and technical developments, as well as changes in the structure or volume of production. The situation may be influenced by the improvement of management methods and competent organization of the product manufacturing process. Thanks to this, working conditions are improved and the work of all personnel is stimulated.

When studying the question of how labor productivity is measured, one should consider the methodology for analyzing the indicator. It is considered in dynamics. Depending on the purposes of the study, one of the calculation systems presented above is used.

During the study, the management of the enterprise may resort to measures to eliminate equipment downtime and employee absence. All reasons for unjustified loss of working time are clarified. It may also be necessary to make adjustments to the product structure.

Having familiarized yourself with how labor productivity is measured, having examined its formula, components and analysis methods, you can conduct a qualitative study of the efficiency of any enterprise.

This is nothing more than the most important economic category that characterizes the efficiency of using labor resources. It gives an idea of ​​the relationship between working time and the amount of products produced; the more different products are produced or the less time spent per unit of production, the higher labor productivity.

p.s. You will find the test and other topics on our website.

There are various indicators of labor productivity:

1. Complete (the final accurate indicator of labor productivity) ratio of the quantity of production and the amount of time spent on production.

2. Incomplete - the ratio of two factors of production - the amount of time and volume of work, labor costs per 1 hectare, and so on.

3. Indirect comparison of these two factors of production, one of which is (load of livestock per 1 milkmaid or cattleman).

Full indicators of labor productivity are:
straight,
reverse.

A direct indicator is the output per unit of time (production). The inverse indicator is labor costs per unit of production (labor intensity).

The higher the output and the lower the labor intensity, the higher the productivity. Consequently, the level of labor productivity is determined by the relationship between the amount of product productivity and the cost of its production over time.

Let's denote:

Q - quantity of products, c.
T – amount of labor costs for all products per person. - hour.
T - labor costs for 1 centner of products in man-hours
y is the level of labor productivity c/man-hour.

Then:
Labor intensity = Labor costs for all products / Quantity of products T = T/ q;
Output = Quantity of products / Labor costs for all products y = q/ T .
The total labor costs for production are determined as the cost per 1t of product multiplied by the quantity of product. T= t*q.

The system of labor productivity indicators is determined by the unit of measurement - the quantity of products produced. These units can be natural, labor and value, conditionally natural.

Apply accordingly:
1. natural,
2. conditionally natural,
3. labor,
4. The cost method measures labor productivity.

Cost indicators of labor productivity have a number of advantages over natural indicators.
1. They reflect the industry structure of product production.
2. Product quality.

Labor productivity in this case is characterized by the following indicators:
1. Gross production in comparable 1994 prices per 1 average annual worker employed in agricultural production.
2. Gross output in comparable prices, calculated per 1 man-hour, man-day. The cost level of labor productivity expresses not only the given level of labor productivity, but also the level of labor use during the year.

Analysis of natural indicators over a number of years allows:
1. Determine the change that has occurred in the level of labor productivity for the production of each product.
2. Outline specific measures to increase labor productivity. Labor is recorded in man-hours. Difficulties arose in the distribution of labor in agriculture, since in addition to the main products, there are also associated and by-products.

Methodology for distributing the amount of labor expended into main and by-products:
1. Determine the quantity of main products, associated and by-products.
2. According to the coefficients, related and by-products are converted into the main one.
3. Recognize the specific gravity of each type of product in the total volume.
4. The total labor costs for the main, associated and by-products are distributed according to specific weights.

Depending on how labor costs are measured, the following levels are distinguished:
1. Average hourly output = quantity of products, centners / man-hours;
2. Average - monthly output = quantity of products, centners / average annual number of employees;
3. Average - daily output = quantity of products, centners / man-days.

The productivity of useful labor is recognized at various levels, from each individual labor productivity to the productivity of social labor in the country as a whole.
Social labor productivity = National income production / Average annual number of agricultural workers.

The purpose of work activity is to obtain a result, for example, the production of products or services. For any employee or their group, the fruitfulness of this result matters, i.e. the amount of products (services) produced per unit of working time (hour, day, month, year). And the higher this result, the lower the cost per unit of production. Consequently, with high labor productivity and increasing production volumes, production costs are reduced. Efficiency and productivity of labor are measured using the labor productivity indicator.

Labor productivity- this is an indicator of the fruitfulness of the purposeful activities of workers, which is measured by the amount of work (products, services) done per unit of time. Labor productivity characterizes the ability of workers to create goods and services with their labor per hour, shift, week, decade, month, quarter, year. The amount of work produced by one worker is called production. The output indicator can measure any work: production of products, sale of goods or provision of services.

Labor productivity ( P) is calculated using the formula:

P= ABOUT/ H

Where ABOUT- the amount of work per unit of time,

H- number of employees

Apply three methods measurements of labor productivity: cost, natural and labor, which differ in units of measurement of the volume of work.

Cost method measurements allow you to compare the labor productivity of workers of different professions and qualifications, but the disadvantage of this method is the influence of the price factor - market conditions and inflation.

Natural method measuring labor productivity is used in the case of producing homogeneous products.

A variation of the natural method is conditionally natural a method when the amount of work is taken into account in conventional units of homogeneous products. The conditionally natural method is convenient to use.

At the core labor method lies in measuring production volumes using the conditional labor intensity of production or sales of products. When measuring labor productivity using the labor method, time standards for producing a unit of output or selling a unit of goods are used. The advantage of the labor method is the possibility of its application to all types of work and services. But for the widespread use of the method, time standards for each type of work are required, which are not always available. This method cannot be used to calculate the labor productivity of workers paid on a time basis, for whom time standards do not apply.

Labor productivity is influenced by the labor intensity of work.

Labor intensity- this is an indicator characterizing the costs of living labor, expressed in working time spent on the production of products (services). Labor intensity measured, as a rule, in standard hours (actual hours of work spent on the production of a unit of work).

The indicator is the inverse of the labor productivity indicator and is calculated using the formula:

T = Pv: Kp

Where T- labor intensity;

Rv- working hours;

KP- quantity of products produced.

Technological complexity(Ttechn) reflects the labor costs of the main production piece workers (T) and time workers (Tpov):

T = T + T.

Labor intensity of production maintenance(Tobsl) is a set of costs of auxiliary workshops of the main production (Tvsgyum) and all workers of auxiliary workshops and services (repair, energy, etc.) engaged in servicing production (Tvsp):

Production labor intensity includes the labor costs of all workers, both main and auxiliary.

Labor intensity of production management represents the labor costs of employees (managers, specialists and actual employees) employed both in the main and auxiliary workshops, and in general plant services of the enterprise.

Included full labor intensity labor costs of all categories of industrial production personnel of the enterprise are reflected.

Depending on the nature and purpose of labor costs, each of the indicated labor intensity indicators can be project, prospective, normative, planned and actual.

The labor intensity indicator has some advantages over the output indicator:

First, it establishes a direct relationship between production volume and labor costs;

Secondly, the use of the labor intensity indicator allows us to link the problem of measuring labor productivity with the factors and reserves for its growth;

Thirdly, it allows you to compare labor costs for identical products in different workshops and areas of the enterprise;

Fourthly, it excludes the impact on labor productivity of changes in the volume of supplies according to the organizational structure of production.

Living labor- This energy consumption of the human body. During physical labor, muscle energy is expended, which is measured in calories; During mental work, the energy of mental activity is expended. It is clear that the cost of living labor has physiological limits.

Materialized labor characterizes the living labor embodied in objects and means of labor - in machines, mechanisms, equipment, automation - in the past, i.e. past labor.

As society develops, living labor covers an increasing mass of materialized labor. As a result, in total labor, with an increase in the share of materialized labor, the share of living labor decreases. This is the main sign of growth in labor productivity. In one case, with a decrease in the costs of living labor, the costs of materialized labor per unit of production increase both relatively and absolutely (with a decrease in total costs).

In the other, the costs of past labor grow only relatively, but their absolute expression falls. Such processes, for example, are observed respectively either when manual labor is replaced by mechanized labor, or when outdated equipment is modernized, or enterprises are reconstructed on the basis of more progressive and efficient means of production.

Improvement of production and scientific and technological progress is the main condition for increasing labor productivity. The introduction of new technologies and automation tools leads to increased mechanization of labor.

The indicator of the level of mechanization can be determined by the formula:

Mind = Chm: Cho x 100%

Where Mind- level of labor mechanization in%;

World Cup- number of mechanized workers;

Cho- total average number of employees.

Mechanized labor workers include those who perform their work with the help of machines and mechanisms. An increase in the level of mechanization (automation) of labor indicates an increase in the share of materialized labor and the possibility of increasing labor productivity without increasing the cost of living labor. An important characteristic of living labor is intensity.

Labor intensity- This the degree of intensity of living labor, determined by costs (physical, mental and nervous energy per unit of time). The scientific organization of labor involves the use of normal labor intensity, at which irreversible negative changes in the worker’s life do not occur.

The most reasonable approach to determining labor productivity is achieved by meeting the following requirements:

Accounting for all labor costs for this type of work;

Elimination of distortions associated with differences in labor intensity;

Elimination of repeated counting, in particular of past work;

Possibilities for measuring the rate of change in labor productivity and average wages.

Labor productivity is a dynamic indicator, i.e. matters only with progressive change. Increasing labor productivity is the most important condition for ensuring growth in material production and income.

There are several classifications of labor productivity growth reserves.

Firstly, they are all divided into two large groups: reserves for improving the use of living labor (labor) and reserves for more efficient use of fixed and working capital.

The first group includes all reserves related to the organization of working conditions, increasing the capacity of workers, the structure and placement of personnel, creating organizational conditions for uninterrupted work, ensuring a sufficiently high material and moral interest of workers in the results of work. The second group includes reserves for better use of fixed production assets (machines, mechanisms, equipment, etc.) in terms of power and time, as well as reserves for more economical and complete use of raw materials, materials, fuel, energy and other working capital.

Secondly, based on the possibilities of using reserves, they are divided into stock reserves and loss reserves. For example, underutilization of equipment in terms of capacity or shift work, or advanced labor methods that have been studied but not yet implemented are stock reserves. Lost working time, defects, excessive fuel consumption are considered loss reserves.

The first group includes: reducing the labor intensity of manufacturing products, rational use of working time and improving the personnel structure. These factors influence the growth of living labor productivity, and through it, labor savings.

Second group reserves for growth in labor productivity are associated with a more efficient and rational use of material components of the production process.

Reserves for saving living and materialized labor should be considered at three levels:

Directly at the workplace (individual, collective);

Secondary labor collective (site, workshop);

At the enterprise level.

The concept of “reserves” includes production losses of working time and unproductive labor costs. Production time losses are intra-shift and whole-day downtime, absenteeism and all absences from work not included in the plan. Unproductive labor costs are excess labor costs compared to planned labor costs due to the irrational use of tools and objects of labor, violations of the established technological process.

According to the place of identification and use, reserves are divided into national, regional, intersectoral, sectoral, and intra-industrial.

National reserves influence productivity growth throughout the economy. These are reserves associated with the location of enterprises, rational use of the employed population, integrated use of natural resources, etc.

Regional reserves are opportunities for better use of the productive forces available in the region.

Intersectoral reserves are associated with the possibility of improving relations between enterprises in different industries and strengthening their contractual discipline.

TO industry These include reserves, the use of which increases the productivity of workers in the industry as a whole. This is the specialization of enterprises, the concentration and combination of production, the improvement of equipment and technology, etc.

In-production reserves for growth in labor productivity are of utmost importance, since ultimately all their types are identified and implemented directly at enterprises. They are divided into two groups: reserves for reducing the labor intensity of products and reserves for better use of total working time.

Based on the time of use, reserves are divided into current and future. The former can be implemented without significant changes in the technological process and additional capital investments, the latter require restructuring of production, installation of more advanced equipment, capital costs and significant time for preparatory work.

Growth factors Labor productivity (or its reserves) is considered to be a set of objective and subjective reasons that determine changes in the level of labor productivity.

Currently, labor productivity growth factors are broadly combined into three groups:

1st group - factors of fixed capital. Their role is determined by the quality, level of development and degree of use of investments and material fixed assets. These factors are associated with mechanization and automation of labor, the introduction of advanced technologies, and the use of high-quality and efficient materials. However, the growth of materialized labor should not be higher than the growth in the volume of work achieved due to the influence of these factors.

2nd group - socio-economic factors. This is the composition and quality of workers (their qualifications), working conditions, the employee’s attitude towards work, etc. In the group of socio-economic factors, the composition and quality of the workforce play a special role, since the contribution of each individual to the total aggregate labor is not the same: some in the team always produce more than the average, while others - less than the average. The labor productivity of an individual worker depends on his abilities, skill and knowledge, age, health and other reasons. From the standpoint of effective work, it is important for the employer to find “his” employee, whose efficiency and labor productivity are potentially above average.

3rd group - organizational factors. They cover a whole range of actions on labor organization and management, personnel management, which have a direct impact on the growth of labor productivity. The concept of “organization of labor and management” includes the choice of size and location of the enterprise, cooperation, specialization and combination as a form of organizing production at the enterprise, the scheme, structure and style of enterprise management, and the definition of the tasks of its divisions.

A special subgroup consists of factors influencing relationships in the team and work discipline. Here we should name, firstly, the value system of employees and the principles of interaction that influence the target attitudes of personnel and the behavior of employees, their interaction, both in groups and in the team as a whole, secondly, measures to activate employees, thirdly, measures of control over the execution of management decisions and the correction of errors and miscalculations, etc.

The effect of the listed factors of labor productivity growth is determined by natural and social, subjective conditions of activity. One can also note the influence of the country's climatic conditions and natural resources, its social development, political life and, finally, the level of well-being of the population.

1) growth factors of living and materialized labor. As already noted, this is associated with reserves for labor intensification within the framework of normal intensity and with measures to increase the share of fixed capital;

2) factors of labor productivity growth, determined by the time of action. This group distinguishes between current factors associated with organizational and technical measures that do not require significant investment re-equipment, and promising factors associated with a radical transformation in engineering and technology;

3) factors determined by the role and place in the economy:

a) national economic;

b) intersectoral and sectoral;

c) intra-company;

d) workplace.

The action of national economic factors is associated with the availability and use of labor, the structure of production, and the level of social division of labor (including international).

Inter-industry and sectoral factors of labor productivity growth are associated with the peculiarities of the organization of production - its specialization, concentration and combination, with inter-industrial cooperation.

Factors for increasing labor productivity in the workplace include a set of measures to eliminate wastage of working time and use it more rationally.

For example, the impact of the share of workers employed in production, the number of days worked, the length of the working day and the hourly productivity of the worker for a specific period is studied.

Calculations are performed using the formula:

P= U X D X R X Pch: 100%

Where P- labor productivity;

U- index of the share of workers employed in production in the total number of workers ;

D- average number of days worked by one production employee ;

R- average working day;

Pch- hourly labor productivity of workers engaged in production.

Table 1 shows the calculation of changes in labor productivity at the enterprise using the above factors.

The hourly labor productivity of workers in primary production is calculated as follows:

1034,2: 58,0 % : 218: 7.8 x 100 % = 1.0486 (thousand rubles).

Analysis of the table data allows us to determine the influence of the factors we have chosen on changes in employee productivity over the year.

1. The decrease in the share of workers in primary production led to a decrease in labor productivity by 114.1 thousand rubles.

(6.4% x 218 x 1.0486): 100% = 114.1 thousand rubles.

2. An increase in the number of days worked per year led to an increase in labor productivity by 4.22 thousand rubles.

(51.6% x 7.8 x 1.0486): 100% = 4.22 thousand rubles.

3. An increase in working hours led to an increase in labor productivity by 11.85 thousand rubles.

(0.1 x 51.6% x 219 x 1.0486): 100% = 11.85 thousand rubles.

4. Thanks to the increase in hourly output, labor productivity increased by 117.3 thousand rubles.

(0.1314 x 51.6% x 219 x 7 ,9) : 100% = 117.3 thousand rubles.

Thus, the influence of all factors on the growth of labor productivity was:

4.22 + 11.85 + 117.3 - 114.1 = 19.1 (thousand rubles)

The following had a positive impact on the change in annual labor productivity:

Increase in the number of working days per year;

Increased working hours;

Increasing the employee's hourly output.

The level of labor productivity in Russia still lags behind the level of this indicator in economically developed countries.

The greatest reduction in the indicator occurred precisely at enterprises that transferred to the private sector; there, the level of labor productivity decreases 1.4 times faster than in state-owned enterprises. The main reasons for this situation were general economic problems that caused a decline in production (by 43% in state-owned and 49% % in private enterprises), changes in the structure and decrease in population demand and, finally, a chronic lack of funds for wages at enterprises. There is a depreciation of labor power, which has a bad effect on the level of labor productivity. Cheap labor has never been productive, and there is no need to talk about its rational use.

Russia needs nationwide target programs that would contribute to the development of the country's productive forces under various forms of ownership. In addition, enterprises need their own programs and plans aimed at increasing labor productivity, taking into account specific business conditions and financial indicators.

In market economic conditions, the concept is becoming increasingly widespread. marginal productivity of labor, according to which an additional increase in the number of workers leads to an increasingly smaller increase in the marginal product.

In this case, the marginal product of labor is understood as the amount of additional output that an enterprise will receive by hiring one additional worker.

In the case when the marginal product of labor is greater than the marginal cost of labor, it is necessary to increase the number of employees, while the total profit of the enterprise should increase with the increase in the number of employees.

If the marginal product of labor is less than the marginal cost of labor, then profit begins to decrease with the last worker hired. Therefore, it is possible to increase profits only by reducing the number of employees.

Thus, profit maximization is possible only at a level of employment at the enterprise when the marginal income received as a result of the work of the last hired employee is equal to the marginal cost of paying for his labor.

An increase in labor productivity at an enterprise is manifested in the form of:

Increasing the mass of products created per unit of time while keeping its quality unchanged;

Improving the quality of products while maintaining a constant mass produced per unit of time;

Reducing labor costs per unit of production;

Reducing the share of labor costs in production costs;

Reducing the time of production and circulation of goods;

Increasing mass and profit margins.

Labor productivity management includes the following elements:

Quality management;

Planning efficiency improvement procedures;

Measuring labor costs and rationing labor;

Accounting and financial control.

It is necessary to take into account factors that impede productivity growth, such as a decrease in the price of labor with a constant increase in living standards and an increase in the level of costs of restoring working capacity.

Like any product, labor has a price. The price of labor is wages. The "price" of an individual's labor depends on its quality - qualifications.

Wages- this is the amount of monetary remuneration paid to an employee for completing a certain task, amount of work or performing his official duties for some time.

There are nominal and real wages. Nominal wages- this is the salary accrued and received by the employee for a certain period. Real wage is the quantity of goods and services that can be purchased for a nominal wage.

There are two forms of remuneration. Payment is established either depending on the time during which the enterprise used labor, or in accordance with the volume of work performed. In the first case, the payment is called time-based, in the second case - piecework.

Time-based wages are used if it is impossible or difficult to standardize labor, in strictly regulated, highly mechanized and automated production processes, in industries that require high quality and accuracy of work, and where there is no need to stimulate labor intensity.

The main advantage for the worker with time-based wages is that he has a guaranteed monthly income that does not depend on a possible decrease in the level of production in a given period of time. The disadvantage is that the worker does not have the opportunity to increase his earnings by increasing his personal share in the production process.

From the enterprise's point of view, the main disadvantage of time wages is that it does not stimulate workers to increase their output. At the same time, the enterprise has relative savings on wages while increasing production (Fig. 15). The time-based form of remuneration includes two systems: simple time-based and time-based bonuses. At simple time-based system, the amount of wages depends on the employee’s tariff rate and the amount of time worked. Time-based bonus The remuneration system is used to improve qualitative or quantitative indicators (failure-free operation, improved product quality).

Piecework form of remuneration is used where it is possible to establish an unambiguous relationship between the volume of products produced and the amount of labor expended by each worker or group of workers. From the worker’s point of view, the piecework form of remuneration has the advantage that it makes it possible to increase earnings with an increase in labor intensity (Fig. 16).

For an enterprise, the use of a piece-rate wage system makes it possible to stimulate, if necessary, the production of workers, and the main disadvantage is the possible decrease in quality with an increase in output.

The piecework form of remuneration has several systems: direct piecework, piecework-bonus, piecework-progressive, indirect piecework, piecework, collective piecework.

At direct piecework In the wage system, a worker’s earnings are directly dependent on his individual output. This system is used where it is easy to organize individual labor accounting. Earnings are determined as the sum of the products of the corresponding piece rate and actual output.

The price is the part of the wage per unit of production.

At piecework-bonus In addition to earnings at direct piece rates, the system pays a bonus for fulfilling and exceeding the plan according to pre-established qualitative or quantitative indicators.

At piecework-progressive In the remuneration system, workers within the established norm are paid at basic rates, and in excess of the norm - at increased rates.

Indirect piecework the system is used to pay the labor of auxiliary workers serving the main piece workers, on the pace and output of which the productivity of the main workers depends.

At chord system, the amount of payment for work is established not for each production operation separately, but for the entire complex of work, taken as a whole, indicating the deadline for their completion.

Collective systems It is advisable to use wages in cases where it is impossible to take into account the individual output of each worker.

Labor productivity shows how much product an enterprise produces per unit of time. Or how much time is spent on producing a unit of goods. Read on to learn how to calculate and analyze the indicator.

What is labor productivity

Labor productivity in economics describes the efficiency and productivity of any activity, enterprise, or device. Can characterize the effectiveness of an individual in his personal activities, or as an employee of a company.

Labor productivity is used:

1. To assess the economic success of a country, industry, enterprises within the same or different industries.
2. For planning within the company.
3. To assess the actual situation in order to improve the success of the company.

Download and use it:

Labor productivity formula

What is labor productivity at the enterprise? The ratio of the product of labor to labor costs.

Labor Productivity = Labor Product / Labor Costs

Key labor productivity indicators

The most commonly used indicators of labor productivity at an enterprise are output and labor intensity.

Output

Production uses the natural (conditionally natural) method, labor, and cost methods. It is calculated as the ratio of production volume to the number of employees or as the cost of production per unit of time. The volume of production can be in physical, value terms, or in standard hours.

Formula for calculating output:

where B is output,

Q – production volume,

T – amount of working time.

How to analyze labor productivity and create a report

If you need to evaluate the performance of production departments and compare it with costs, a labor productivity report will help. See in what order to compile 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.

Formula for calculating labor intensity

where Tr is labor intensity,

T – amount of working time,

where P is the labor productivity of one employee,

O – the number of units of production produced by the employee during the period,

T – 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 production according to the balance sheet (line 2130);

Kp – Downtime factor

T – labor costs of one employee

N – average number of employees.

Example of calculating labor productivity

Let's look at an example. The company produces a variety of footwear: galoshes, shoes, felt boots. Based on data, management reporting, and reporting from the HR department, we will calculate the output and labor intensity of labor productivity for several reporting periods. This is management accounting data on the number, , amount of working time spent on the production of certain types of products. Also, for the purpose of further calculations, the cost was recalculated in base prices.

Table 1. Data for calculating labor productivity

Indicators
Number of galoshes produced, pcs.
Number of shoes produced, pcs.
Number of felt boots produced, pcs.
Cost of produced galoshes, rub.
Cost of shoes produced, rub.
Cost of produced felt boots, rub.
Amount of working time for the production of galoshes, hour
Amount of working time for shoe production, hour
Amount of working time for the production of felt boots, hour

Based on the data from the HR department about the number of production and management personnel, we will calculate output.

Table 2. Labor productivity calculation

Indicators			February, at base prices (to January)
Number of employees producing galoshes, people.
Number of employees in shoe production, people.
Number of employees producing felt boots, people.
Average number of production workers
Average number of general production workers
Average number of managerial workers
Average number of workers in total at the enterprise
Production of galoshes, pcs./hour
Production of shoes, pcs./hour
Production of felt boots, pcs./hour
Output of all production personnel, rub./person.
Output of all personnel, in rub./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 has decreased. This indicates a decrease in labor productivity. The production of shoes has increased. And the production of felt boots per hour has more than doubled. At the same time, the number of employees in the production workshop wearing felt boots has decreased. A more detailed analysis showed that this change is associated with the updating of equipment for the production 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 output 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 per person. But the output for the enterprise, taking into account all employees, decreased from 10 rubles per person. up to 9.42 rubles/person (at base prices by January). This happened, among other things, due to an increase in the number of management personnel, although the average number of personnel did not change at all and amounted to 19 people (see also, calculation of the average number of employees).

How to increase productivity

There are two ways to increase productivity: increasing the technical equipment of production and improving 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 pricing of work and reasonable labor standards.

You can use a piece-rate bonus system for remunerating workers, aimed at increasing productivity. With its help, it is possible to maintain production stability, achieve the planned level of product output, and also strictly regulate the actions of personnel. The enterprise has the opportunity to increase production or reduce the number of employees by increasing productivity, and workers have an incentive to increase output.

The piecework wage system gives management the opportunity to establish the relationship between output volume and labor costs. If demand changes, the volume of output will be proportionally adjusted along with it, as well as the share of wages per unit of output. This allows you to keep marginal profitability at a constant level. The advantages of the piecework system include the relative simplicity of calculations. An increase in labor productivity is a reduction in working time to produce a unit of product. This means that labor intensity (time to produce a unit of output) is a measurable, controllable 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 evaluate staff productivity no more than once a month. A more frequent assessment is justified in companies whose activities are significantly dependent on seasonality. Then it is necessary to track labor productivity in the months with maximum (peak) and minimum load: weekly or ten-day.

The frequency of reporting is also affected by staff turnover. If it exceeds 5 percent, then labor productivity must be assessed at least once a month.

At enterprises whose work does not depend on seasonality, and whose staff turnover is within the normal range, labor productivity assessments 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 evaluate labor productivity over time on a monthly basis or more often (ten-day, weekly).

Conclusions

Often, the owners and managers of a company are interested in the labor productivity indicator from the point of view of planning the company’s activities, or as a marker for assessing the required number of operating enterprises when changing the structure and range of production.

Labor productivity indicators allow for a more qualitative analysis of the current situation at the enterprise, to understand the factors of change in production, the number of employees, and the amount of time spent. And identify resources to increase the efficiency of production activities.