Most labor management approaches rely on proxies—occupancy, ratios, or static standards. These measures describe inputs, but they rarely reconcile with what work was actually completed.
The R5 Lens reframes labor as a yield equation: how effectively paid time converts into verified operational output, within the real constraints of the operation.
Labor yield measures the conversion of paid labor time into recognized operational output. It reconciles what labor was paid for with what work was actually completed and recorded in the operating systems. When yield is visible, opportunity becomes measurable rather than assumed.
When labor yield is visible, leaders can move beyond assumptions and manage labor as a governed economic system rather than a fixed constraint. This shift enables disciplined decision-making, reduces reliance on manual intervention, and creates the foundation for sustainable margin improvement.