You will need

- - staffing;
- settlement statements for the 12 calendar months;
- - records of work time for the year;
- calculator.

Instruction

1

Define the settlement period. Generally, it is the calendar year. Add up the salaries of employees, bonuses, vacation pay over the 12 months. In the calculation

**of Fund****of payment***of labour*in accordance with labour legislation, include payments that are of a continuing nature. When calculating this indicator exclude the sums which are lump sum (for example, social assistance).2

Determine the total amount spent by the employees of the company (or individual departments) time. Use the sheet of accounting of working time, which is filled monthly by the timekeeper or other responsible person from whom this duty is spelled out in the instructions. Add up the number of hours in which employees perform their job function over the 12 calendar months.

3

Determine the average number of employees. Add up the number of staff for each individual day of the month and divide by the average number of days in the month (it should take 30 days). Repeat this procedure for the period January – December. Then add the results and divide by 12.

4

If you need to determine a monthly Fund

**of payment***of labour*, the amount of payments per year divide by 12. Then the annual amount spent whole days divide by 12. the average monthly wages of employees divided by the average number of days. The result, divide by the monthly headcount.5

The daily calculation

**of Fund****of payment***of labour*is calculated similarly with month. The difference lies in the fact that all indicators should be taken per day by dividing each of them by the average number of days in the month, that is 30.6

Time Fund

**of payment***of labour*of workers is determined in those organizations, where there are hourly run work. Sum of the tariff rate specialists with relying payments (bonuses, money for night shifts, public holidays, which shall be paid at double the size).# Advice 2: How to calculate productivity

**Productivity**

**of labor**is one of the main performance indicators of any organization. And, of course, for every Manager it is important to know how effective are his staff.

Instruction

1

First decide how you are going to consider the performance

**of the work**: using the output of products per unit time (direct measure) or through increased labor intensity (the inverse value).2

Rate of output production per unit of time count as follows:

The volume of goods produced, divide by the cost

The volume of goods produced, divide by the cost

**of labor**(or time spent on the production of these products). The result is the average output of products per unit cost**of labor**.3

The increased complexity of the products count as follows: cost

**of labor**(or the time of production) divide by the volume of production. Get the cost**of labour**per unit of production, i.e. labor input.4

Next, decide what method you calculate the productivity

**of labor**: natural labor or money.5

Natural method use to determine the amount of production and production (in tons, units, square or cubic metres, etc.). For example: your firm for one month produced 50000 pieces of nails. You have 50 people working. Output per worker will be 50,000 units divided by 50 people – 1,000/person.

6

The labour method of volume production measured in normo-hours. This method is not very convenient for small and medium businesses.

7

Choose the cost method if your company produces heterogeneous products.

In this method, all volumes and types of goods are expressed in money single indicator - in rubles. To do this, multiply the volume of each product at wholesale prices. The production also count in monetary terms. For example, your Atelier sewed 500 dresses for the price of 1000 rubles, and 300 costumes for the price of 2500 rubles. The number of dressmakers in the Studio is 100 people.

Output = (500pcs. ?1000 RUB + 300 PCs ? 2500 RUB) /100 people =12500 RUB/person.

In this method, all volumes and types of goods are expressed in money single indicator - in rubles. To do this, multiply the volume of each product at wholesale prices. The production also count in monetary terms. For example, your Atelier sewed 500 dresses for the price of 1000 rubles, and 300 costumes for the price of 2500 rubles. The number of dressmakers in the Studio is 100 people.

Output = (500pcs. ?1000 RUB + 300 PCs ? 2500 RUB) /100 people =12500 RUB/person.

8

And the last thing we pay attention: productivity

**of labor**– the value of the variable. And it depends not only from your employees but from you. The better the conditions**of labour**, the stronger the motivation, the performance will be higher. Good luck with the business!