Man-Year

DEFINITION of 'Man-Year'

A method of describing the amount of work done by an individual throughout the entire year. The man-year takes the amount of hours worked by an individual during the week and multiplies it by 52 (or the number of weeks worked in a year). The man-year calculated will be different for various industries depending on the average number of hours worked each week and the number of weeks worked per year.

INVESTOPEDIA EXPLAINS 'Man-Year'

There are two main reasons why an organization may calculate the man-year applicable to its employees.

For one, that organizations may use the man-year along with sales or cost figures as a performance metric. For example, a company may calculate a sales per man-year metric and compare it to values from previous years.

The second reason a company would calculate the man-year would be for budgetary reasons. For example, a corporation may calculate the total man-years for various offices that it operates and allocate budgets according to office size.

RELATED TERMS
  1. Ratio Analysis

    Quantitative analysis of information contained in a company’s ...
  2. Annual Budget

    Any budget that is prepared for a 12-month period. An annual ...
  3. Capital Budgeting

    The process in which a business determines whether projects such ...
  4. Budget

    An estimation of the revenue and expenses over a specified future ...
  5. Department Of Labor - DOL

    A U.S government cabinet body responsible for standards in occupational ...
  6. Human Capital

    A measure of the economic value of an employee's skill set. This ...
Related Articles
  1. What You Need To Know About The Employment ...
    Economics

    What You Need To Know About The Employment ...

  2. Which is a better measure for capital ...
    Budgeting

    Which is a better measure for capital ...

  3. A Guide To Conference Board Indicators
    Markets

    A Guide To Conference Board Indicators

  4. What are Business Ethics?
    Investing

    What are Business Ethics?

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...