Effective personnel management includes: providing the company with the required number of employees, rational use of personnel and increasing the level of labor productivity in general. The profitability of personnel allows to assess the use of labor resources of the enterprise.
Instructions
Step 1
Profitability of personnel reflects the efficiency of use of labor resources in the company. This indicator characterizes the work of both the workforce of the company as a whole and gives an assessment of the usefulness (productivity) of one employee. The personnel profitability is calculated according to the following formula: Rppp (personnel profitability) = P (profit from product sales) / PPP (average number of industrial and production personnel).
Step 2
The personnel profitability indicator is influenced by the qualifications, experience, professionalism of the company's workers and their number. For example, a company may have a sufficient number of employees, but their lack of experience and proper skills will hinder the production of products of appropriate quality. Consequently, this state of affairs will lead to an increase in costs and a decrease in profits from the sale of products.
Step 3
Staff profitability can be increased by upgrading existing staff. Improving the organization of labor will lead to a decrease in the labor intensity of products, an increase in productivity, an increase in profits from the sale of products.
Step 4
A situation in which the staff is staffed with employees with the proper qualifications and experience, but the enterprise itself operates on obsolete equipment, will also lead to a decrease in the profitability of personnel. Old technologies and equipment do not allow producing products that would meet market requirements in terms of quantity and characteristics.
Step 5
On the contrary, the technical re-equipment of production will increase the volume of products and improve their quality. Thus, the introduction of new equipment and modern technologies will improve the technical and economic level of production of the enterprise as a whole. Consequently, the profit from sales will increase, as well as the profitability of personnel.
Step 6
Low profitability of personnel may indicate that the organization exceeds the established costs of maintaining employees: tax deductions, overalls, transportation costs, compensation for mobile costs, and others. Thus, the profit that the company brings to employees is significantly less than the cost of their maintenance. Reducing the cost of maintaining employees can lead to an increase in staff profitability.
