12/17/2019 Labor Force Participation Rate: application and calculation in Excel

Master Class
LABOR FORCE PARTICIPATION RATE:
Create table
APPLICATION AND CALCULATION IN
Excel-functions
EXCEL
The Labor Force Participation Rate shows the measure of labor Formulas and ranges
participation of an individual worker in the overall result of the team,
Formatting
the production team. This is a generalized quantitative assessment of
the labor contribution of an individual specialist. The using of LFPR Sort and filter
prevents to a subjective assessment of the contribution of each
employee to the common cause, the emergence of conflicts over the Charts in Excel
calculation and payment of wages.
Pivot Tables

THE APPLICATION OF LABOR FORCE PARTICIPATION Printing sheets

RATE Databases and XML

The basic value of the LFPR - is 1 or 100. Such the value is applied to
Excel features
the accruals to employees who, in the calculation period:

completed the task; Settings and Options

followed the requirements for production technology, Site map

quality, work protection;
Download Examples
observed labor discipline;

observed to the job duties, the working instructions. news

subscription FB
The base labor force participation rate, depending on the indicators
that reflect the individual contribution of the specialist to the collective
result of labor. Each organization determines the individual dimensions
of the LFPR. The decision is made by the council (assembly) of the
team and is drawn up by the appropriate protocol.

In the future, the daily records of the indicators are carried out and the
total LFPR is calculated.

The criteria that can reduce the size of the rate:

the failure to comply with the order of the head;

the violation of production technology;

non-fulfillment of the plan, established economic

indicators;

defect, poor quality of work;

violation of the labor discipline;

non-compliance with work protection requirements;

performance of work without adequate instruction, attire,
personal protective equipment;

https://exceltable.com/en/analyses-reports/labor-force-participation-rate 1/4
12/17/2019 Labor Force Participation Rate: application and calculation in Excel

the applying of a faulty instrument, equipment, faulty

technology;

the applying of equipment for other purposes, etc.

The indicators that increase the value of LFPR:

the manifestation of initiative, creative activity in the

performance of the production, organizational and
technical task;

the solving of a complex and responsible task;

the performance of work in a short time;

mentoring, etc.

LFPR is most often used for piecework pay. The tariff part is charged
according to hourly rates and worked time. The premium and payment
on labor force participation rate are paid out of the extra-tariff part of
the FOT (over-tariff part of the salary).

With the using of the LFPR, the following surcharges can be

distributed:

the prize for labor achievements (for the performance of

the supernorm);

the one-time fee in connection with changes in

standards;

the saving on salaries is connected with the release of

staff.

The non-tariff salary, which is distributed according to the coefficient,

refers to the cost of production.

LABOR FORCE PARTICIPATION RATE: THE FORMULA

IN EXCEL

https://exceltable.com/en/analyses-reports/labor-force-participation-rate 2/4
12/17/2019 Labor Force Participation Rate: application and calculation in Excel

The actual indicator of labor = basic LFPR + SC (the sum of raising /

lowering criteria).

The base one - is 1 or 100. The lowering criteria for assessing of the
work contribution are subtracted from the basic labor indicator. The
increasing ones - are added.

This is example task. There is a team of 4 employees in the

woodworking shop. They have 3 types of equipment. The salary is
accrued with using LFPR. A system of raising and lowering criteria has
been developed.

For the calculation of the individual LFPR the separate table is made:

For each reporting period, the separate table is filled. The totals - is the
sum of the base and raising /decreasing criteria. To understand how
wages are accrued using the LFPR, we will distribute the non-tariff part
of the FOT between the members of the brigade. Suppose, for May
this team established the sum of 65 000 rubles. This figure should be
divided by the amount of LFPR for all employees and multiplied by the
individual labor force participation rate.

Add the line «Total» in the table and calculate the sum of all
employees' coefficients (the =SUM() function):

The award for work achievements is calculated using the formula:

Download calculation LFPR example in Excel

Download example 2

https://exceltable.com/en/analyses-reports/labor-force-participation-rate 3/4
12/17/2019 Labor Force Participation Rate: application and calculation in Excel

To this figure it remains to add the tariff part, which is calculated on the
worked time and hourly rates.

https://exceltable.com/en/analyses-reports/labor-force-participation-rate 4/4