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Friday 19 July 2019
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Is it possible to monitor employee productivity

Yes, it is possible. And I’d go much further than that to say that it is vital to the success of a business. Monitoring the productivity of your employees should be an integral part of your business. Without knowing how productive your team are, you can’t possibly make the required changes to improve this with any certainty that your changes have a positive impact.

Let me explain. If your productivity level is measured, and you make a change, then you can see whether this results in increased productivity after the change. We don’t make changes for the fun of it. We make them to get things better.

WHAT ARE WE MEASURING?

The first step is to know what it is that you want to measure. Productivity is defined broadly as –

‘A productivity measure is expressed as the ratio of outputs to given inputs used in a business or other process, i.e. output per unit of input.’

With this in mind, you need to know both the inputs and outputs that you want to measure. For inputs, on the broadest sense, this is the money you spend on your business. You can then break this down into the different areas of expenditure –

  • Capital expenditure
  • One-off projects
  • Utilities
  • Staff costs

And it is this last cost that we use for employee productivity.

WHAT ARE THESE COSTS WHEN ADDED UP?

Think about the associated costs of an employee. This might include perks, pension contributions or even taxes, depending on where you are based in the world. Add all of these up for each employee and you have the input.

From there, you need to measure their output. If they are in a direct sales role, then this is probably much easier to do. The value of the contracts they bring in is their output. You can measure their productivity based on these figures – and compare it with others in the same role. Back office staff may have a different set of output measures, but that doesn’t mean we can’t take these into account. Customer services may have measures of customer satisfaction, for instance.

Measuring the time employees spend on their tasks is another step towards improving productivity. SINC – Free Employee Time Clock is a great way of measuring the hours people spend in your business. It delivers reports to your desk that allow you to monitor and improve productivity from this data.




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