Labour productivity, or just productivity, is the calculation of
output per employee. It is incredibly important for any business,
especially for a factory. You can calculate productivity by dividing
output per period (units) by number of employees at work. So, for
example, if a factory makes 5,000 units per month, and they have a
labour force of 500 employees, their productivity is 5,000 divided by
500, which equals 10 units per worker. Depending of the industry, this
could be either good or bad.
So, what influences labour
productivity? Well, there are four main factors. The first is the ...