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Measuring your company’s or department’s productivity allows you to make operational changes, such as adding people or equipment to improve employee productivity and the work environment to fulfill deadlines. Understanding your workforce’s productivity also will enable you to assess overall efficiency and if you can achieve tight deadlines or take on additional clients while enhancing the employee experience and fostering a positive work environment. There are several methods for measuring productivity and determining which is ideal for your company might take some time and thought.

What is productivity?

Productivity compares the output to efficiency in the workplace. It comes up frequently in casual conversations. It’s most likely to come up in meetings, seminars, and surveys. It’s now regarded as the antidote to our economic woes.
After all, companies aim to have more productive work.

But how can we measure it, and why should we?

Some feel that hiring and maintaining the brightest minds is critical to a company’s success. Whatever your beliefs, it’s encouraging to see Small and Medium Enterprises or SMEs looking for wiser methods to motivate employees and transition away from traditional working patterns to increase employee productivity.

As a result, many firms are addressing workforce productivity concerns by exploring flexible working solutions. You have options, from flexi-time and remote work or work from home to workplace wellness initiatives, personal development goals, and self-managed teams.

A company must understand how productive its operations are to make wise investment decisions. For example, you could work at a car manufacturing plant whose output has decreased significantly over the last two years. Based on its productivity data, the corporation can deduce that the decrease in productivity is due to outdated equipment that has to be replaced.

How To Measure Productivity

Every business has its own technique for measuring productivity. The various strategies reflect that each organization is unique in terms of structure and emphasis.

Define and assess tasks (not hours)


Define measurements that are related to essential job functions or use broader measures. Measuring how quickly customers are served, how many invoices are sent out, how many sales calls are made, how many orders are delivered, and how employees feel about these processes, their productivity levels, and the quality of work, are all useful metrics. In some circumstances, measuring group output may be more accessible for evaluating overall team performance.

Conduct a client survey


Poor employee performance eventually affects your customers. When an order or service does not go as planned, a client survey can be a helpful way to obtain feedback and track it down to the individual staff.

Excellent performance can also be identified and rewarded. Poor employee performance eventually affects your customers. When an order or service does not go as planned, a client survey can be a helpful way to obtain feedback and track it down to the individual staff.

In the workplace, employees may discover that incorporating client feedback is one of the effective ways to increase employee productivity. Excellent performance can also be identified and rewarded.

Identify the Percentage of goals met


This is one of the most accurate measures of employee productivity. The number of targets achieved by your staff directly correlates to its productivity. You may determine the efficiency of your workforce by calculating the percentage of goals met. However, to ascertain this proportion, you must first establish a quantifiable plan for your crew or a specific department.

Here’s the productivity formula for calculating the proportion of goals met:
(Actual/Goal)*100 = Percentage of goals met

Keep tabs on employee attendance


Monitoring absenteeism is a critical component in evaluating employee performance. If a person performs admirably at work but takes excessive time off sick due to work stress, overall production suffers.

Presenteeism (attending work although ill) has a significant impact on performance. Putting a price on presenteeism is exceedingly difficult, but it is essential to address. Employees who come to work when ill, negatively impact overall productivity in the long run. Attending work when ill increases the risk of infecting other employees and lengthens recovery time. Workplace well-being programs can assist in identifying and addressing presenteeism. 

Consider the culture


What you and your employees do and say, how you act within a firm, and how customers, products, and services are treated all contribute to company culture. It is the daily organizational structure that identifies you and your company.

For the best work and improved team productivity, fostering a positive company culture is crucial for enhancing productivity in the workplace and promoting employee recognition.

First, look through other company culture blogs to find yours. You’ll fit into four cultures: hierarchical, clan, market, or ad hoc.

Then, begin developing goals that are relevant to your firm and sector. These will reflect your plans for the company, as well as your vision and mission.

Create a baseline


Lastly, you must set some baseline criteria against which to measure. You must identify the expected work outputs for each role. In applying employee’s productivity measurements to positions with defined tasks, it may be simple or it may be more challenging to use the same data for roles with broader responsibilities, such as receptionists and administrative employees.

However, expectations for each role should be established. This clarifies things for both the employer and the employee. It sets a baseline for measuring performance and holds the person accountable.

The significance of recognizing employee engagement

Productivity is one of the routes to success. Employees are vital and key to the success of your company. Thus equal emphasis should be paid to understanding employee engagement and managing change.

Measuring employee productivity is critical if SMEs want to discover issues and help employees improve productivity and be their best in terms of workplace productivity.

If you want to keep track and measure your employees’ productivity and see improvements in your company’s performance, individual employee productivity overall team’s productivity levels, all you need is Tarkie. Tarkie is your complete field force automation solution and productivity software that can empower teams to deliver the best results.

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