ANALYSIS OF LABOR PRODUCTIVITY IN RELATION TO PROFITABILITY BASED ON LIVING LABOR COSTS (METHODOLOGY AND METHODS)
Keywords:
labor productivity, factors, influence, analysis, profitability, living labor costsAbstract
The workforce is one of the factors that directly influence the implementation of the enterprise's business plan. The efficiency of the use of the workforce of an industrial enterprise is analyzed by the labor productivity indicator, considered in two aspects: first, as a separate object of economic analysis - as a result indicator, the formation and dynamics of which is influenced by a system of direct and indirect factors. The analysis identifies the strength and direction of the influence of direct factors, and second, as a factor that influences the changes that have occurred in the values of other important result indicators characterizing the enterprise's activities, such as the volume of manufactured/sold industrial output, profitability based on labor resources, profitability based on the cost of living labor.
The labor productivity of an industrial enterprise characterizes the output produced by one employee. The following direct factors influence the change in annual labor productivity: 1) worker coefficient; 2) key worker coefficient; 3) man-days worked by one key worker; 4) duration of the working day; 5) hourly labor productivity. The analysis model expresses the relationship between annual labor productivity, personnel structure, use of working time and hourly labor productivity.
The change in hourly labor productivity is influenced by two direct factors: 1) structure of production by labor intensity and 2) individual hourly labor productivity - by types of products. Through hourly labor productivity, these factors also influence the dynamics of annual labor productivity.
In the theory of the economy, two models have been derived for analyzing the efficiency of the use of labor force in individual enterprises, which can be used for macroeconomic analysis of the efficiency of the use of labor resources both in industry and in other sectors and branches of the national economy. One of the models is a two-factor model for analyzing the profitability indicator based on labor resources. This indicator characterizes the ultimate efficiency of the use of the workforce of enterprises and allows for the identification and assessment of the influence of two factors on the change in profitability based on labor resources: 1) changes in labor productivity and 2) changes in sales profitability.
For the purposes of the analysis, a four-factor model for analyzing profitability based on living labor costs has been outlined using determinant factor modeling. The model allows for the identification and assessment of the influence of four factors on the change in the values of this indicator: 1) changes in labor productivity; 2) changes in the average salary of one employee; 3) changes in social and health insurance costs of one employee; 4) changes in sales profitability.
The subject of the study is the methodological aspects of the analysis of labor productivity in relation to profitability based on living labor costs. The author's goal is to propose improved extended methodologies for analyzing profitability based on living labor costs.
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