How to calculate productivity

• Output per unit of input

This productivity measurement strategy calculates productivity as the ratio of output to input. For example, if an organization makes 200 units of a specific product, using 20 labor hours, then the productivity would be 10 units per labor hour of production.

• Sales per employee

The sales per employee method calculates productivity by examining the revenue generated per employee. For example, if an organization generates $500,000 in sales revenue, with 25 sales employees contributing, then the productivity would be $20,000 per employee.

• Revenue per unit of input

The revenue per unit of input calculates productivity as the revenue made per unit of input.

For example, if an organization generates $200,000 in sales revenue, using $20,000 in advertising costs, the productivity would be $10 of profit per one dollar of advertising investment cost.

• Units produced per hour

The units produced per hour method calculates productivity as the number of units produced each hour. For example, if a manufacturing organization produces 50 units in 5 hours, then the productivity would be 10 units per hour.

• Revenue per hour worked

The revenue per hour worked method calculates productivity as the profit that is made per hour worked. For example, if an organization makes $200,000 in profit with 1,000 labor hours, the productivity would then be $200 in profit per each labor hour.