When measuring productivity, it is more effective if the human resource officer uses certain metrics. This makes the evaluation easier and more beneficial. Besides, it shows the employees the very areas they need to improve. What are these metrics? Let’s explain top employee productivity metrics.
Management by objectives
In this case, the employees’ productivity is measured based on their contribution to the organization’s goals and targets. For this to be effective, the employees must have been given the company’s goals and the necessary information to reach the targets.
Production units per employee
This is evaluated using a quantitative method whereby the employee’s output is assessed over a given period. It works best with small businesses. However, even when you are managing a huge workforce, it can be applied. You can use productivity software to do so effortlessly.
Feedback from colleagues
Another commonly used employee productivity metrics is the feedback from colleagues. This method is only applicable if the employees in the company interact openly. However, the evaluators must be trained on being objective. That is their feedback should only be based on professional capabilities of their colleagues and not on emotions.
This is rather a complex metric, and it would be challenging to get an accurate measure. Nonetheless, it can help managers to have a clear insight of their employees’ productivity. Some of the things that are measured include sales made in dollars and number of interactions with current customers.
Time management productivity
This metric looks at the way an employee utilizes their work time. If the test is carried out appropriately, it should tell the amount of time that is used in completing tasks. Also, it can reflect on the time that is lost during offs, sick leaves and absenteeism among other factors
It evaluates the productivity of employees in service businesses. The evaluators can assess the number of customers or tasks, which the employee has managed over a particular time. The speed with which the employee delivers a service as well as the feedback provided by customers can be determined.
Productivity by profit
Another way organizations measure productivity is by assessing the amount of profit that each employee generates for them. It is one of the most preferred employee productivity metrics for small businesses.
This focuses on the quality of the tasks completed. It does not give much attention to the quantity of work but on whether the work was done as required.
Deadlines and time frames
This can work where the company has many projects that are handled by teams. It assesses if the teams are working within the set time frames or deadlines.
Team effectiveness ratio
Team effectiveness ratio determines the gross profit gained on every dollar spent on employees’ salaries. Its primary goal is to sensitize teams to work smarter rather than longer.