By end of the 1980s, the company was manufacturing residential, commercial and industrial generators, and in 1989, Generac introduced the first gaseous-fueled automatic home standby system. In 1992, Generac began private labeling generator sets for Caterpillar, Inc.
Elements of the Productivity Ratio. The labor productivity ratio, in its simplest form, looks like this: output/input. Simply divide the amount of output you're getting by the amount of work you're putting into it. This requires you to assign numbers to both input and output so that you get a meaningful figure.
Labor Rates. To set a rate for labor costs, you need to compute the average hourly labor cost for all employees. The calculation is very similar to that used to figure the true hourly labor cost for a single employee. Add up the non-wage costs and annual wages for all employees to estimate your total annual labor cost.Next, add up the estimated labor hours for a year for all employees. Divide the estimated annual labor cost by the estimated number of labor hours to find the amount you need to allocate per labor hour.ivide the annual wages by the actual labor hours to find the wages per labor hour. In this example, $31,200 divided by 1,920 hours works out to $16.25 per hour. Related Reading: How to Calculate Fully Burdened Labor Costs.