To work toward this goal you've got to know how productive your company is. Thus, you must define and measure productivity for comparison from time to time. Productivity Measurement Definitions of and ways to measure productivity vary. The quantity of output is measured in units produced, dollars of sales, or any term that suits your need. The quality of output is measured by workmanship, adherence to standard, and absence of complaints.
Input is measured by labor costs, hours worked, and number of employees.
To be useful, measures must be as simple and as consistent as possible. To compare productivity measures in different years, pick a base year and give it an index of 100. Then figure your ratio of compensation to sales and with that number calculate the index and compare the fluctuation of the indexes. But you had ten employees in xxx1 and xxx2 and eleven in xxx3. Assume each employee worked a 40 hour week of 2,080 hours a year.