Labour Productivity

• Measures the output per worker
• Labour Productivity = Total Output / Number of employees
• The higher the labour productivity the better
• Factors influencing Labour Productivity

  • training and skills of the workforce
  • motivation
  • complexity of the product
• The use of productivity data

  • indication of workforce morale
  • is additional training required?
  • is labour being used effectively?
  • what steps could be taken to increase labour productivity?