HOW TO ANALYSE THE DATA
NO
INDICATOR
DEFINITION
1
PRODUCTIVITY Reflects the amount of
wealth created by company
relative to the number of
employee it has .
2
LABOUR COST COMPETITIVENESS
HIGH RATIO
LOW RATIO
• Management Efficiency
• Work Attitudes
• Demand for the product
• Price effect (pricing
strategy)
• High BIGS
• Wastage of time and
materials
• Inadequate salary/wage
rates
2.1
Added Value
per Labour
Cost
Added Value per Labour Cost
measures how much added
value is produces by each
unit of labour cost. Added
value generated per ringgit of
labour cost that we spent.
The higher the ratio, the
more competitive is the
industry in terms of labour
cost.
A low ratio implies low
level of productivity or
high labour cost
unmatched by
productivity growth.
2.2
Labour Cost
per Employee
Labour Cost per Employee
measures the average wage
rate per employee
High ratio means high
returns to individual
workers.
vice-versa
2.3
Unit Labour
Cost
Proportion of labour cost to
total output.
Unit Labour Cost measures
the labour cost incurred in
producing one ringgit worth
of output per employee
A high ratio indicates high
labour cost which could be
due to labour scarcity and
high labour turnover. It
could also be due to a lack
of skilled labour or poor
labour mix.
vice-versa
Transformation
. Innovation . Partnership
1
Productivity Linkages
- Competitiveness
Ratio
Growth 12-13
What is Tells
This ratio indicates how
competitive.
The enterprise in terms of LC
Added Value per
Labour Cost
-26.42 %
Labour Cost Per
Employee
91.5 %
This ratio measures the average
remuneration per employee
60.61 %
This ratio indicates the
proportion of labour cost to
total output.
40.90 %
Reflects the amount of wealth
created by the company,
relative to the number of
employees
Unit Labour Cost
Added Value per
Employee
Overall analysis indicates that this company is NOT COMPETITIVE
Transformation
. Innovation . Partnership
2
Productivity Linkages
- Competitiveness
Ratio
Growth 12-13
What is Tells
Added Value per
Labour Cost
6.5 %
This ratio indicates how
competitive.
The enterprise in terms of LC
Labour Cost Per
Employee
8.3 %
This ratio measures the average
remuneration per employee
-2.4 %
This ratio indicates the
proportion of labour cost to
total output.
2.9 %
Reflects the amount of wealth
created by the company,
relative to the number of
employees
Unit Labour Cost
Added Value per
Employee
Overall analysis indicates that this company is NOT COMPETITIVE
Transformation
. Innovation . Partnership
3
Productivity Linkages
- Competitiveness
Ratio
Growth 12-13
What is Tells
Added Value per
Labour Cost
7.22 %
This ratio indicates how
competitive.
The enterprise in terms of LC
Labour Cost Per
Employee
1.86 %
This ratio measures the average
remuneration per employee
-9.09 %
This ratio indicates the
proportion of labour cost to
total output.
9.71 %
Reflects the amount of wealth
created by the company,
relative to the number of
employees
Unit Labour Cost
Added Value per
Employee
Overall analysis indicates that this company is COMPETITIVE
Transformation
. Innovation . Partnership
4
Transformation
. Innovation . Partnership
5