1. What Is Sales Per Labor Hour (SPLH)?

Sales Per Labor Hour (SPLH) is a key retail performance metric that measures the amount of sales generated per hour of labor. It helps businesses evaluate the efficiency and productivity of their workforce in generating revenue.

2. How Does The Calculator Work?

The calculator uses the SPLH formula:

Where:

• Total Sales — The total revenue generated (in USD)
• Total Hours — The total labor hours worked (in hours)

Explanation: This simple ratio divides total sales by total labor hours to determine how much revenue is generated for each hour of work.

3. Importance Of SPLH Calculation

Details: SPLH is crucial for retailers to measure labor productivity, optimize staffing levels, identify training needs, and improve overall operational efficiency. A higher SPLH indicates better labor productivity.

4. Using The Calculator

Tips: Enter total sales in USD and total labor hours in hours. Both values must be positive numbers. The calculator will compute the sales generated per labor hour.

5. Frequently Asked Questions (FAQ)

Q1: What is a good SPLH value?
A: SPLH benchmarks vary by industry and store format. Generally, higher values indicate better performance. Compare against industry averages or your historical data.

Q2: How often should SPLH be calculated?
A: Most retailers calculate SPLH daily, weekly, and monthly to track performance trends and make timely staffing adjustments.

Q3: Does SPLH include all labor hours?
A: Yes, SPLH typically includes all paid hours - both productive time and breaks - for a comprehensive view of labor efficiency.

Q4: How can I improve my SPLH?
A: Strategies include better staff scheduling, cross-training employees, improving sales techniques, and optimizing store operations.

Q5: What's the difference between SPLH and sales per employee?
A: SPLH measures efficiency per hour worked, while sales per employee measures productivity per person regardless of hours worked.