Most of the corporates and small businesses today concern themselves heavily about measuring employees’ productivity. In the capitalist model of businesses where profitability rules the market, measuring productivity becomes very important for a business model to work efficiently. There are some challenges to productivity, such as when workers are paid way too much than they produce. With a problem like that, managers mustn’t only focus on rupees spent per hour but also rupees spent per product. In such a scenario, very productive workers can be paid thousands of rupees more, and the business can see a good rise as well.
So the question is, how do you precisely measure productivity? Here are the ways in which you can measure employee productivity quite easily.
1. Quantitative Method
This method of measuring employee productivity is entirely apt for small organizations. In the quantitative approach, you have to calculate your company’s standard operational output, take an average out of it and divide it by the total number of your employees. After you have gathered this number, you can use it as a grounds on which your employees will be judged.
However, to make it fair, you also have to measure factors that affect your employees’ productivity such as broken equipment, materials coming in late and various other things that your employees’ can’t control
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In this method, you have to clearly lay out objectives or goals that your employees are to achieve in a stipulated frame of time. Transparent communication with employees about what is expected out of them and clear goal path is critical for this method to work out. Communications in terms of how valuable the employees are to achieve these goals for themselves and the business are essential. This not only sets a firm ground to measure employees’ productivity, but it also empowers them to perform better. To make this method work even stronger, you must make your employees’ meet their superiors to talk about their progress and problems in the workplace.
3. Time Management Method
Time Management Method lays out how employees manage their time, and they are given guidance on how they can limit their time loss. Employees are given proper training to keep track of how they use their time in non-work related practices such as texting, chatting with employees or using the internet. It also sets up a precedent for employees to align themselves better with the business goals.
4. Profit Measuring Method
Profit Measuring Method works the best for those employers who don’t like to keep track of how the employees are doing their jobs or how employees are using their time. In this method, the focus is usually only on the result and hence you look up only at your profits, where what you’ve earned is worth the investment in your employees. The best part of using this method is that firstly it is less time consuming at your end and secondly task and time tracking do not end up hindering the employees’ productivity as well as creativity.
5. Customer Feedback Method
When the business is a b2b model, then taking customer feedback, reviewing their feedback and measuring the number of feedback are the best ways to measure the productivity of employees. When there are no physical products or outputs to measure, one can surely consider what the client says about the business or the employee they were engaged with. This determines how well the employees are doing their jobs.
These are the concrete methods that any business admin can use and put into place considering the ethics, values, size and requirements of their business. These methods, when applied, can give you the best idea about the increment that your employees can provide.