Improving the methods for labor productivity calculation

Subject. The article addresses the methods for calculating the labor productivity, as their efficient use enables to improve the social and economic development of the society, ensure stable economic growth and competitiveness of national economy.Objectives. The study focuses on identifying and structuring the factors that have an impact on labor productivity growth, analyzing the current methods for labor productivity calculation applied by Russian companies, and developing practical recommendations.Methods. I employ various methods of information gathering and processing, including the analysis of appropriate laws and regulations, official statistical data, public reporting of domestic enterprises, etc. The study also draws on the systems approach, and comparative and statistical analysis.Results. I offer a classification of the key factors affecting the labor productivity, reveal the value added as the most effective indicator for labor productivity evaluation. The cost component in value added most correctly reflects the dynamics of production as compared with the revenue-based methodology. The classification helps understand the most effective directions and methods of labor productivity improvement.Conclusions. The offered methodology is the most effective. It enables to present an adjusted algorithm for labor productivity calculation, using the value added.