How to Measure Employee Productivity

How to Measure Employee Productivity

Recording an employee’s productivity is like summing up what they accomplish each day. In most cases, you can point to tangible numbers, like units shipped or calls answered, to form a snapshot of employee productivity. The fact is that expectations are changing, and how we measure employee productivity in this new age must evolve to stay relevant.

Measure Expectations

One method practiced by developers who use the “Agile” development philosophy is to measure productivity in terms of perceived and productive time. A project manager first comes up with a system of time management, say “chili peppers,” and then decides how many of these units will be needed to complete a project. An online time sheet is used to measure actual hours, and in some cases notes on the project itself. The time spent working is measured against that projection, and improvements are made in infrastructure so goals and output match.

Record Actual Hours

Time clocks are still an important part of the employment landscape. Hourly employees are just as important as ever, now that businesses are cutting down on excess expenses. Part-time and hourly employees record their hours worked, which is then measured against the work they produce. This is how a company discovers how efficient their workforce actually is.

Review Final Product

The final product or the sum of those products is also a great indicator of productivity. You can use last year’s projections for this year to measure whether employees are actually hitting the goals you’ve set for them. Try to review totals regularly, and meet with employees to discuss potential road blocks. It may be that more staff is needed, or that work must be delegated properly.

Customer feedback can also be a healthy indicator of individual productivity. If one of your employees consistently receives high marks for service, or for going above and beyond, consider enabling this individual to do better work for you.

Final Thoughts

Gauging an employee’s productivity isn’t a simple matter, and there are many influencers that can affect what goes on at work. For instance, teams can expect to be on the phones handling customer concerns during a new product launch. That time may affect output elsewhere, leading one to believe that the staff is working inefficiently. Try to account for these outside circumstances when you analyze your business model. Your company may be dealing with an inordinate amount of stress that requires your attention.


This guest post was brought to you by Allied Time, suppliers of a Web based time clock to track employee time. Allied has been supplying businesses with time clock solutions for 40 years.

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