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Productivity Calculator

Calculate labor productivity per employee and per hour to measure business efficiency

Calculate Productivity

$

Total revenue generated from goods or services

Total number of employees working

Total hours worked in the period

Please enter revenue and at least one input (employees or hours) to calculate productivity.

Example: House Cleaning Business

Scenario

Business: House cleaning service

Employees: 2 workers

Working hours: 8 hours per day

Daily revenue: $1,200

Calculation

Productivity per employee = $1,200 ÷ 2 = $600 per employee

Productivity per hour = $1,200 ÷ 8 = $150 per hour

Hours per employee = 8 ÷ 2 = 4 hours per employee

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Productivity Benchmarks

Excellent (> $100/hour)
High-value services, specialized work
Above Average ($50-100/hour)
Professional services, skilled trades
Average ($25-50/hour)
General services, standard operations
Below Average (< $25/hour)
Entry-level, high-competition markets

Productivity Tips

Invest in technology: Automate repetitive tasks

Train employees: Improve skills and efficiency

Optimize processes: Eliminate waste and bottlenecks

Focus on quality: Reduce rework and errors

Understanding Labor Productivity

What is Labor Productivity?

Labor productivity measures the number of goods and services produced over a certain amount of time, typically per labor hour or per employee. It's a key indicator of business efficiency and economic growth.

Why Measure Productivity?

  • Compare business performance over time
  • Benchmark against competitors
  • Identify improvement opportunities
  • Make informed business decisions

Productivity Formulas

Revenue per Employee = Revenue ÷ Number of Employees

Revenue per Hour = Revenue ÷ Working Hours

Applications

  • Manufacturing: Units produced per hour
  • Services: Revenue per employee
  • Construction: Square feet completed per day
  • Retail: Sales per employee per shift

Tip: Track productivity regularly to identify trends and seasonal patterns.

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