How Do You Calculate Productivity Growth Rate?
It is not uncommon for companies to experience revenue growth without profit growth. In this case, the issue is usually associated with worker productivity and efficiency in operations. In this case, it may be helpful to create performance indicators designed to measure productivity. This will give you the ability to track productivity growth over time. Once you have established productivity measures for your organization, calculating productivity growth is easy. Determine the original productivity level. There are an unlimited number of ways to measure productivity. It depends on the service or product provided. In order to measure growth, however, you need to figure out at least one uniform measure of productivity for your company. For instance, if you want to improve the number of widgets produced per hour, you can use the performance measure “widgets / hour”. Determine the ending productivity measure value. The measure should be calculated in exactly the same way, after a certain t
