Labour Productivity | 60 Second Business скачать в хорошем качестве

Labour Productivity | 60 Second Business

Why do some businesses produce more with fewer workers than their competitors? The answer lies in labour productivity. Labour productivity measures the efficiency of a workforce in converting labour input into goods or services. It's calculated as output per worker or output per hour worked. Here's a simple calculation example: If a business produces 500,000 units per year with 40 workers, labour productivity equals output (500,000) divided by workers (40) = 12,500 units per worker. Labour productivity is a useful measure because it shows: • Output achieved from hours worked or employees employed • Changes in productivity over time • How a business compares with industry benchmarks • The impact of factors like training, technology, and processes How can businesses improve labour productivity? Through better training, investment in technology, process optimisation, improved workplace conditions, stronger employee motivation, and more effective management. However, be careful - focusing only on productivity metrics without considering quality, employee wellbeing, or sustainable work practices can be counter-productive. The most successful approaches balance efficiency with effectiveness and employee engagement. Higher productivity typically leads to lower unit costs, better competitiveness, and improved profitability.