Do you want to increase your team's productivity or are you still looking for definitions and formulas? Then you've come to the right place:
1. Definition & Formula for Calculation
2. 4 Factors that Influence Labour Productivity
What does Labour Productivity mean? Definition & Formula
This indicator describes the ratio between the resources invested by a company and the resulting output of goods or services. Simply put: How much working time is there in my product?
Here's a simple formula to calculate your team's labor productivity:
Labour productivity = Number of goods and services produced/working time worked
This ratio can be optimized by using resources more efficiently and increasing output.
Increasing Labour Productivity: 4 Factors
To increase labor productivity, you need to be familiar with all the influential factors. Here we have listed the 4 most important ones:
- Knowledge and Motivation
A team of well-trained and motivated employees is fully committed to projects. Extensive onboarding processes, regular refresher courses and a Personal Development Plan increase motivation and can sustainably increase productivity. - Work Process and Organization
Are your employees constantly busy but not productive? Then there is probably a lack of efficient work organization and optimal work processes. Analyze what your team is spending time on with a time tracking tool and filter out unnecessary time-wasters. For example, by simplifying administrative tasks or automating processes, more time can be spent on essentials. - General Working Conditions
A pleasant working environment, plenty of daylight and suitable equipment ensure well-being. Just ask what employees would change about their workplace. Perhaps an uncomfortable office chair distracts you from work or a noisy coffee machine disrupts concentration. - Using Technology
Optimise work processes by introducing modern tools and applications. Are you still recording your time in Excel? Then switch to a user-friendly tool that, in addition to time registration, also directly takes over billing. This way, you can increase productivity by spending less time on administration.
Conclusion
Labour productivity is an important indicator of your company's economic success and can be influenced by factors such as knowledge, work organization, working conditions, and technology.
At TimeChimp, we know exactly what it takes to increase labor productivity. Our practical time recording tool provides you with an insightful overview of all working hours actually spent for certain tasks and projects. Here, you can not only record hours digitally, but also document the type of activities carried out and any interruptions.
This information then helps you identify weaknesses and optimize work processes accordingly. The integrated project management and billing modules also make it possible to automate your entire administrative process with just one tool and thus increase your labour productivity. And best of all, you can try out all features for free for 14 days.
Easy does this.
