How to determine labor productivity growth

Statistics know everything. She knows, for example, how to determine the growth of labor productivity in each particular enterprise. This is necessary not only to calculate the profits of the enterprise, but also in order to calculate our wages.

Instruction manual

1

When developing the company's annual work plan, proceed from the need to ensure the given growth rates of labor productivity, which can be determined both in absolute terms and in relative terms (usually in the form of its growth as a percentage of the base year).

2

To determine the optimal growth of labor productivity as a percentage of the planned year, first calculate the number of employees in the planning year for production related to the base year.

3

Then calculate the savings (decrease) in the number of employees of your enterprise on the basis of the assignment for the planned increase in labor productivity in accordance with the long-term plan for the social and economic development of the organization.

4

Next, calculate the savings (decrease) in the number of employees due to the introduction of organizational and technical measures into production in the planned year. It is worth noting that, unfortunately, until now, the calculations of the growth of labor productivity to a small extent take into account the constant growth of production automation.

5

Calculate the ratio of the planned reduction (saving) in the number of employees and the decrease (saving) in the number of employees in direct accordance with long-term planning for the growth of labor productivity.

6

Calculate the growth of labor productivity by dividing the planned production volume by the total number of workers (average number) in the planning year.

7

These statistical indicators of labor productivity growth can be determined in other units of measurement of output. Units can be not only labor, but also cost, natural and conditionally natural. Based on this, other methods of measuring the growth of labor productivity can be applied: value, natural and conditionally-natural.