# How to measure productivity of employees

Productivity is measured by comparing the volume of goods and services produced with the inputs used in production. Labor productivity is the ratio of the output of goods to services and the hours of labor spent on the production of that output.

## How do you calculate employee productivity?

You can measure employee productivity with the labor productivity equation: total output / total input. Read also : How to calculate productivity percentage. Let’s say your company generated \$ 80,000 worth of goods or services (output) using 1,500 hours of labor (input). To calculate the labor productivity of your company, you would divide 80,000 by 1,500, which equates to 53.

What is productivity How is it calculated? Productivity measures the efficiency of a company’s production process. It is calculated by dividing the outputs produced by a company by the inputs used in its production process.

How do you calculate hourly productivity? You can use labor productivity formula in two ways:

• Labor productivity per capita. productivity = income / number of employees.
• Calculate hourly productivity. productivity = income / number of hours.
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