How to analyze the labor cost answer

First of all, we can apply the results of labor cost analysis to the field of cost control. It is self-evident that labor cost analysis plays an important role in controlling labor cost. We can adjust the staffing of the company according to the analysis results to control the labor cost. At the same time, we can also adjust the post competence through the analysis of labor efficiency and make corresponding adjustments. As a result of the analysis of operating costs and expenses, we can evaluate the elimination and upgrading of production factors restricted by personnel factors such as production equipment, and make appropriate adjustments to product prices according to the rising labor costs.

Secondly, the results of labor cost analysis have a high guiding role in improving efficiency. Through the analysis of efficiency cost, it can help us to improve labor efficiency, and we can carry out targeted training guidance and equipment improvement to improve labor efficiency. The consideration of efficiency improvement is also helpful to the adjustment of staffing. We can adjust the staffing through the adjustment of incompetent and invalid posts and the merger and expansion of staffing, thus improving the overall efficiency of the company. In addition to the above two aspects, labor cost analysis also has an important reference role for the company's strategic adjustment. As an important cost item of production and operation, labor cost plays an important role in the start-up demonstration of business projects. Many projects will change because of labor costs. In recent years, many multinational companies and even China companies have chosen to set up factories in Vietnam because of its low labor cost. The adjustment of organizational structure is also the result of the use of labor costs. When the efficiency or expense of labor cost is greatly increased, enterprises can reduce the number and expenditure of managers by increasing the management span and reducing the management level to reduce the transmission loss of work information, thus adjusting the organizational structure. In terms of the impact on process reengineering, enterprises will be forced to reduce work processes to improve efficiency or set up part-time jobs across departments to control labor costs because of changes in labor costs.

Finally, we put these steps together to form a complete "labor cost analysis" process.