Man-Year

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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.

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