Measuring Labour Productivity in Service Enterprises: A Multi-Indicator Approach

The article develops a multi-indicator approach to measuring labour productivity in service enterprises. Three limitations of single-indicator measurement are identified: dependence on price dynamics, insensitivity to service quality, and the inability to distinguish intensity from efficiency. A system of four measurement levels is proposed  value, physical, time and quality-adjusted  each represented by its own set of indicators. A worked example demonstrates that two enterprises with almost identical arithmetic scores differ substantially once the geometric mean is applied, because one of them shows a critically low result on the quality-adjusted level. The composite index is therefore calculated as the geometric mean of level indices, which prevents full compensation between levels. Practical implications for enterprise management are substantiated.