How do you measure staff productivity?
Now that you know how important productivity is, you may be wondering how to measure your team’s productivity levels. You can use the following equation:
total output (volume created) ÷ total input (labor hours and resources) = labor productivity
As an example, let’s say your business produces $95,000 worth of goods between 50 employees in one week.
$95,000 ÷ 50 = $1,900
In this case, each staff member generates $1,900 for your company every week.
The formula may seem straightforward, but there are various things to consider, such as your business’s industry. For example, the productivity of restaurant servers is going to differ significantly compared to sales representatives in a software startup.
If you’re looking for a way of measuring productivity without calculations, you can use the following:
- Key performance indicators (KPIs): Regularly tracking KPIs, such as client calls made or blogs written, allows you to understand your team’s performance. Start with a list of KPIs that are beneficial to your business and set benchmarks with employees accordingly.
- Quality of work: While quantity is important for productivity, quality is also an essential measure of productivity. Employees may be spending more time on certain tasks to ensure their output is of the highest caliber.
A drop in workforce productivity can be due to various reasons, including lack of employee engagement and inefficient processes. Let’s explore more factors that impact staff productivity.