Labour productivity
#27GUIDING QUESTION
How much value does your team create relative to what it costs?
Revenue relative to staff costs.
01.What it is
Workforce efficiency in economic terms (simple version).
02.Component masses
- Sales
- Staff costs (640 + 642)
03.Formula
MAIN FORMULA
Productivity (simple): Sales ÷ Staff costs(times)
04.Interpretation
- > 2–3 efficient; ≈ 1 balance; < 1 weak
05.Related to
- Operating margin
- ROA
- ROE