Levels of labor productivity: main indicators, calculation, factors of influence

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

Today, various reforms are being carried out in many countries. All of them are aimed at improving the quality of life, at economic growth and so on. However, there is one important factor that is considered a source of help to overcome the negative consequences that appear as a result of reforms - the level of labor productivity.

Term notation

Here it is important to start with the fact that labor productivity is, in other words, its fruitfulness. It can be measured in two ways. Either the amount of use value of goods produced in a certain time, or the amount of time spent on the creation of one unit of goods.

Today, there are two main types of labor productivity - live and aggregate. The productivity of living labor is the amount of time spent on the production of products at a particular site of a particular enterprise. There is also the total productivity of labor. It is measured in the cost of living andmaterialized, that is, past, labor.

It is advisable to increase the level of labor productivity if the share of live employment is decreasing, but the total volume of materialized labor is increasing.

And what can be said about each enterprise separately? Here, the level of labor productivity of an employee will be measured by the indicator of output per employee or per unit of time.

Enterprise and labor

It is worth noting that the level of labor productivity can be determined in another way. This is the ratio of the real volume of production to the number of employees in actual enterprises. There is a certain specificity in this indicator - it directly reflects the savings of living labor, and also indirectly reflects the savings of social labor.

In order to determine the numerical coefficient of this indicator, you can use the general equation, which looks like this:

Fri=P / T.

In this case, Fri is labor productivity, P is the volume of production in any form, and T is the amount of living labor spent on its production.

Characteristic. Quantity of goods released

Indicators of the level of labor productivity can be characterized by a couple of main parameters. The main indicator is the quantity of goods released for a certain period of time. This indicator is the main, most common and universal amongall other performance characteristics. It is worth noting here that outputs can be measured in physical terms, or they can be measured in terms of normalized working hours. The choice of indicator depends on the units of measure chosen to count all manufactured products.

Labor intensity of manufactured products

The second indicator of the level of labor productivity, which is the main one, is the labor intensity of manufactured products. This coefficient will express the amount of time that will be spent on the production of one unit of goods. In addition, it is the opposite. This standard also has several significant advantages:

helps to establish a direct relationship between the output of products and the labor costs for its manufacture;
allows you to closely connect such two factors as measuring productivity and determining reserves for its growth;
allows you to compare the costs of producing the same product in different workshops of the same enterprise.

Calculation of the level of labor productivity, namely the calculation of the output and labor intensity can be represented by the following formulas:

v=W / T, where: v is the total volume of goods produced for a certain period of time, B is the cost of goods after manufacture, T is the amount of time spent on the manufacture of one unit of goods.

The second formula looks almost the same:

t=T / B, where: t is the complexity of manufacturing products.

Reserves for leveling up

Determining ways to increase the level of labor productivity is the most important task facing any analytical headquarters of any enterprise. For this reason, in the vastness of domestic business today there is a specific classification of reserves for this increase.

The first option is to increase the technical level. There are several main areas that imply technical advancement. This can be mechanization and automation of production, the possibility of introducing new technological solutions into the workflow, improving the design properties of products. This should also include improving both the quality of finished products and the raw materials for its production. In some cases, the level of labor productivity is affected by the commissioning of new energy sources.

Work organization and natural conditions

One of the ways to improve the level of labor is to improve the organization of production and labor itself. In this case, both the improvement of the existing labor force and the recruitment of a new one are implied. In addition, standards and service areas can be improved, and the number of workers who systematically do not meet standards can be reduced. It is very important to prevent such a disadvantage as staff turnover, that is, the constant replacement of workers. To save time, it would be advisable to carry out full mechanizationall calculations in the field of accounting and computing work.

Another development option is a change in external, natural conditions. In this case, we are talking about the need to carry out a process of socialization, to adapt to the needs of an ordinary worker in an enterprise. Most of all, this applies to such industries as oil, gas, coal, ore and peat mining. To a lesser extent (but still this paragraph applies to some other industries), this applies to agriculture, transport.

Other growth opportunities

One of the directions that can help to achieve an increase in the level of labor productivity is a structural change in production. This includes a partial change in the share of individual varieties of manufactured products, the labor intensity of the production program, the total share of all purchased semi-finished products or components for goods, for example.

The social infrastructure plays an important role in the development of labor. If it does not exist, then it must be created, and the existing one should be developed. This infrastructure should solve financial problems, difficulties arising with the timely payment of wages. The task of this structure will also include many other issues that will be related to meeting the needs of both the enterprise and the labor collectives working on it.

Average

The average level of labor productivity is determined by several parameters. All of them relate to one of the two main indicators characterizing labor productivity, about whichwas written above. Here we are talking about the manufacture of goods for a certain amount of time:

The first one is the average production of goods in one hour. In this case, to determine the average value, you should divide the number of manufactured products for the selected period of time by the number of man-hours actually worked during the same period of time.
You can determine the dynamics of the level of labor productivity by the average daily output. As for calculations, in this case it is also necessary to divide the number of finished products released for a certain period of time, but not by the amount of time actually worked, but by the number of man-days actually worked. It is important to add here that man-days actually worked include both net time spent on work and time spent on lunch breaks, shift breaks, and downtime, if any. In this case, it is clearly seen that the value of the average daily output will greatly depend on the level of hourly output and the length of the employee's working day.

The last indicator of the level of labor productivity at the enterprise in this case is the average output for one month. It should be noted immediately that the output for the quarter or year is calculated in the same way. The calculation of the level of labor productivity for a month, quarter or year is calculated by dividing the output for the selected period by the average payroll number of workers, employees, etc.

Relationship of indicators

These three middleindicators have a certain relationship. Thus, the average daily output is the product of the average hourly output and the average working day. The average monthly output per worker is the product of the average daily output received earlier by the average duration of the working month of this employee.

This should also include the average output per employee. These are different indicators, since not all employees are workers, directly affecting the volume of output. This may include, for example, accounting, maintenance personnel, etc. It can be determined by the product of the average monthly output of one worker and the share of workers in the total number of all personnel.

Methods for measuring performance levels

There are several methods to measure labor productivity. Their choice depends on which method of calculating the production was chosen, that is, on the numerator in the formula. As for the methods, they are natural, labor and cost.

In the case of homogeneous products, it is best to choose the natural measurement method. The method of labor measurement is best used if a sufficiently large volume of products is produced at workplaces, teams, etc., while with a frequently changing assortment. If the enterprise produces completely different kinds of goods, then, naturally, the cost (value) method of measurement is best suited.

Natural and labor method

In case of choosing natural method for measuringproductivity of labor, all manufactured products should be measured in physical quantities corresponding to it, that is, in tons, meters, etc. There is another calculation option in which the average payroll number of employees should be taken, based on the unit of time spent - man-hour, man-day.

It is best to use such natural indicators to calculate the productivity of teams of workers or on an individual basis for each employee.

As for the labor method, in this case, the output will be determined in standard hours. To get standard hours, you should multiply the amount of work by the corresponding time standards, and then add the results. However, this method has a number of disadvantages, which is why it is not able to give an objective assessment of the level and dynamics of labor productivity even for an individual workplace.

Cost Method

This method is best used to measure labor productivity at the level of the whole enterprise, industry, and even for the entire economy.

As for the Russian Federation, in this case, all manufactured products, services, goods, etc. are sold for the same currency - rubles. The output in this case is calculated in the same currency.

At the end, you can add the following. Whatever place an enterprise occupies in its industry and the economy as a whole, the key to its success, growth and development will always be precisely labor productivity andimprovement of this parameter. This fact should be taken into account on a national scale.