If everything is quite simple with rationing of raw materials, materials and energy resources at cost calculation, then not everything is so clear with normalized labor.
What do you need to know to determine the wage fund of those employees whose wages are tied to product prices and the amount of work they do ?
The right thing is how to calculate the price for a product/service and determine the overall need for employees.
On the basis of what is the pricing for a product/service for a piecework worker generally derived and how is the wage fund calculated?
A simple algorithm in labor rationing:
- We determine the average monthly volume of products/services, taking into account production capabilities and market needs.
- We determine how much one employee in the relevant profession can physically produce this product/service, taking into account acceptable working conditions (rest and weekend regime in accordance with the legislation of the relevant jurisdiction).
- We determine the average monthly salary level for a given profession based on similar professions by industry.
Regarding the role of the salary benchmark in labor rationing, you can look here. - We determine the general need for employees, taking into account the program of production of products/services per month and the planned work schedule / shift.
- We calculate the price by dividing the salary by the monthly volume of one employee and link it to the unit of production.
For example.
A business, taking into account its production capabilities, needs to produce 10,000 chairs per month.
1 employee can make 9 chairs per day. With an 8-hour working day and taking into account weekends, this is 200 pcs per month. (9 x 22 slaves.days per month).
The total daily need for employees is 50 people (10 000/200) - with a one-shift work schedule.
The average monthly salary of one employee in this profession is 70,000 RUB.
The price for 1 chair for each employee will be 350 RUB (70 000/200). The total wage fund for the business of piecework workers will amount to 3 500 thousand RUB (350 x 9 x 50 x 22). day or 350 x 10,000).
What is the importance of determining normalized labor prices using a financial and economic business model?
When building financial and economic model business, this approach in rationing there allows you to correctly form the wage fund for pieceworkers and include its impact on the cost of production, due to the binding of the received prices for each employee to the corresponding type of products.
Among other things, the model allows you to determine the economically justified wages of these workers, because prices can be formed based on the economic potential of the business, and not the average monthly salary level for a given profession (based on similar professions by industry), as noted above.
That is, the model allows you to answer the question - what should be the prices for the product, with all other initial conditions, so that commercial activity is carried out at least at a break-even level.
That's exactly where its importance lies.
