What kind of measurement did your organization use to measure productivity?​

If you ever contemplated effective ways to measure employee productivity, you won’t be the first one to do so.

Measuring employee productivity is a vital component of HR. To that end, any level of performance that is not measured cannot be improved. The only problem is that “performance” itself is sometimes not easily measurable due to different variances in the workflow.

The good people over at your HR department are constantly in search of best practices for their organizations. Measuring employee productivity is one of those practices.

As we have just cited an example of SMEs, it would be appropriate to talk about how they measure employee productivity performance.

Measuring employee productivity is easier said than done. HR has to determine the factors against which productivity will be measured.

Not all employees have the same task. Therefore, coming up with a fair measure for all is quite a challenge.

Few of the best methods to measure productivity in SMEs are:

Method 1: Management by Objectives

management by objectives

To use this method accurately, you must give your employees specific goals and targets to achieve, regarding every task, and then measure their productivity based on their output results that how well they are contributing towards the company’s objectives.

Method 2: Measuring Quantitative Productivity

quantitative productivity measurement

The quantitative measurement method is an easy and straightforward way to measure employee productivity depending on how many parts, applications, products, or calls an employee can process per hour, day, or month.

To access the employee’s productivity, you must consider all factors, including the training time, parts that came broken, fixing time, and lunch breaks.

Productivity can be measured using productivity software and calculating the average production of the day or productivity of each employee per hour, day, or month.

It is a convenient method for small organizations or small businesses.Measurable data is the best form of data.

Method 3: Measuring Productivity by Profit

measure productivity by profit

It is one of the most effective tools for measuring employee productivity performance. Small to medium-sized companies or businesses prefer this way to measure their employee’s productivity.

It is way easier to measure employee productivity by tracking the revenue than to track each employee. If the revenue is increasing, that means the employees are more productive, as simple as that.

As business consultant Roger Bryan of RCBryan & Associates says, “Watch the money, and everything will fall in line”. Michael Hsu, the founder of DeepSky accounting firm, reportedly agrees to this methodology. “Results and value-add trump hours of work any day of the week” he believes.

This is the modern age. You can always get help from technology.