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Factors and Ways to Increase Labor Productivity at the Enterprise

Student: Ageev Aleksandr

Supervisor: Anna Novak

Faculty: Faculty of Economics

Educational Programme: Economics (Bachelor)

Year of Graduation: 2021

The relevance of the research topic lies in the fact that one of the most important means necessary to ensure the successful economic activity of an enterprise is to increase labor efficiency. In a market economy, an increase in labor efficiency plays a significant role, since this is a guarantor of the stability of the production activity of any enterprise, ensures its stable functioning in the context of constantly increasing competition in the market. At each enterprise, the level of labor productivity is different, it depends on many subjective and objective factors and conditions. Effective production results, as you know, cannot be achieved without a constant and purposeful increase in labor productivity, its optimization. And the higher the labor productivity indicators, the more successful the enterprise will be, the higher the level of social protection of its employees. In this aspect, the growth of labor productivity is a key issue for the owners of any business entity. Labor productivity is an indicator of the costs of an enterprise, the higher it is, the lower the costs, which means the company is more profitable and vice versa. In this regard, the increase in labor productivity affects not only the overall efficiency of an economic entity, but also the welfare of its employees, is a guarantor of stable wages, social and insurance payments, bonuses and other deductions. The relationship between the use of labor resources of the enterprise and its economic results predetermines the implementation of measures to reduce the proportion of labor costs. This emphasizes the importance of work to improve labor efficiency. In order for an enterprise to function effectively and have a constant profit, it is necessary to develop and carry out measures to identify reserves for increasing labor productivity.

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