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ArticleName Labor productivity and social efficiency
ArticleAuthor Kotlyar B. A.

Consulting and Analytical Center “TSNOTORGMET”, Moscow, Russia:

B. A. Kotlyar, Chief Executive Officer, e-mail:


Negative trends in metal products market, which caused the decrease of production profitability, were defined during the ferrous metallurgy development meeting (Chelyabinsk, July 16, 2013). Increase of social and economic efficiency of enterprises' activity is necessary in such situation, taking into account the collective employment agreement conditions. Therefore, the importance of the precise evaluation of impact of social programs on enterprises' competitiveness is increased. This article describes the main indicators, confirming the dependence of social efficiency on labor productivity, using the information, contained in the information cards of the members of annual industry-specific contest “The mining and smelting industry enterprise with high social responsibility”. Economic evaluation of worthy labor and improvement of social climate on enterprises should be considered in the first place. According to this, the following indications can be recommended as the basic: change of costs per ruble of sales; ratio between the rates of growth of labor productivity and average salary (real salary in case of high inflation); revenue and profitability of labor; ratio of employees' income to living standards. The appropriateness of usage of recommended indicators is supported by evaluation of social efficiency of various enterprises of ferrous and non-ferrous metallurgy in 2012.

keywords Social and economic efficiency, collective employment agreement, capital, investments, labor productivity, average salary, competitiveness, living standards, social climate

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