To achieve maximum productivity and quality in the company, the workforce is one of the key points. The greatest expense and the greatest amount of administrative problems and the most delicate managerial decisions are found in this factor. We must focus our attention on these indicators that will show us not only the trend in the quality of work and idleness, but also the degree of satisfaction that employees have when carrying out their activities.
All these statistical data can be kept in the personnel department and the head himself must periodically report on quality levels and trends, either general or departmental, as required by management.
Indicator of hours - man worked
It discloses the changes in the employed workforce. It is used preferably when there are large variations in the factory, as in the case of make-to-order production. The total capacity in hours - men is taken as a basis, so the indicator provides us with the percentage used.
Average wage
This indicator is important in those companies with irregular payroll, either because they work many overtime hours, because many temporary workers are employed or because the working time is irregular. In these cases, there is a need to have information to help regularize the situation, if possible.
Average salary = salary paid ÷ man hours worked
Productivity index
In general terms, productivity is the dynamic proportion of production and its inputs or components.
Productivity = Production ÷ Inputs
The inputs can be physical:
- Man hours worked Machine hours Raw material Fuel
The inputs can be abstract:
- Kind of music in the factory Pleasant atmosphere Work comfort
We can also measure productivity by observing the development of the ratio between what has been achieved and what has been programmed.
Productivity = achieved ÷ scheduled
Productivity = performed ÷ budgeted
But the most generalized and international formula, not only at the company level, but at the state level, is the one that measures the production achieved with the man-hours worked.
Productivity = production ÷ man hours worked
Absenteeism
This indicator not only indicates the percentage of absent hours based on the hours worked, but, more importantly, it indicates the degree of dissatisfaction that workers have with the internal policies of the company.
Absenteeism = man hours absent ÷ man hours worked
Accident frequency rate.
Internationally, this indicator is accepted and shows the frequency with which accidents occur in relation to the time worked.
Frequency of accidents = (disability ÷ man hours worked) x 100
Severity index
Shows the severity of the accidents suffered. The calculation of disability due to death or partial loss of a part of the body will be made in accordance with current labor laws.
Severity = (number of days lost ÷ man hours worked) x 100
Relationship between types of work
This indicator indicates the number of workers for each administrative employee.
Types of work = number of employees ÷ number of administrative employees
Relationship between types of wages.
As a complement to the previous indicator, the trend of the relationships that show the proportion of wages and salaries can be studied
Types of wages = worker's wages ÷ employee's wages
Types of salaries = worker salaries ÷ supervisor salary
This ratio indicates the amount that workers are paid for each peso paid to employees or supervisors.
Importance of wages.
It is in the interest of managers, accountants, and budget makers who must know the ratio of salaries paid and cost of manufacturing.
Depending on their variability, they will be recorded and analyzed weekly, monthly, semester or annually.
Indicates the amount of salary or salary paid by a labor force, for each peso spent on the cost of production.
Importance of wages = wages paid ÷ cost of production
Cost of benefits.
As arguments in the employer-employee agreements, or to regulate spending for this concept, when it is irregular, this indicator must be carried, which shows the total amount paid per worker within a given period.
Benefits = benefits paid ÷ number of workers
These benefits must indicate what is paid for wages, salaries, fees, emoluments, taxes, social security, bonds, life insurance, indemnities, overtime, food, pensions, travel expenses, etc.
Rotation of labor.
In certain types of companies, or in certain places, the rate In certain types of companies, or in certain places, the labor turnover rate is very high. In order to make comparisons with the environment, or to be aware of the trend, a record and control of this phenomenon must be kept.
Turnover = number of separated workers ÷ average number of workers
Hours of work per worker.
When there are no fixed working hours, or when there are irregular overtime hours, it is convenient to know the trend of this indicator, which shows the average hours of work for each worker.
Hours of work = man hours worked ÷ average number of workers
Sales per worker.
Although in reality there is no direct relationship between the sales made with the work of the workers, it is convenient to know the tendency of the indirect effort of these people to achieve one of the main goals of the company in which they work, that is, to have the higher possible income.
Sales per worker = total sales ÷ number of workers
To complement what has been stated so far on human resource management indicators, we share a couple of videos from the School of Business and Management (2 videos, 25 minutes) through which you can learn how to build a balanced scorecard that will allow you measure, globally, the management of human capital in an organization.
