How to Measure Employee Productivity the Right Way

November 16, 2021
Corporate Team Building
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In general terms, productivity is the measure of production efficiency. It examines the number of production inputs including the capital, time, and labor utilized to produce a specific level of output.

Employee productivity, on the other hand, is the output produced by an individual employee within a given time period. Increasing employee productivity is not only profitable for the organization, it is vital for improving employee engagement and satisfaction.


The concept of employee productivity has been an important topic of discussion especially now when most organizations have shifted to the remote work model. No matter which industry you belong to, it is important to measure employee productivity as accurately as possible.


Here is how to measure employee productivity within your organization:


1. Set your Standard: It is important to set a standard for productivity before you go about measuring employee efficiency. You can study the output produced within a typical business day to set a baseline standard. Set different expectations for different roles, do not try to create a generalized standard as every employee contributes to the organization differently. These standards will become a reference point for employees and decision-makers.


2. Use Broader Measures: If you measure a specific activity and only consider it as “productive work”, it can be problematic and inaccurate. For instance, if you simply count the hours spent by employees in a workday as the measure of productivity, you will neglect their actual performance on other tasks. Take broader measures when you want to track employee productivity, for instance, check the number of customers served, calls answered, or leads generated by your employees instead of giving importance only to the number of hours. 


3. Try Taking Client Surveys: If your employees are not productive, it directly affects your customers. To learn how well your employees are performing, taking client surveys is a great option. This will help you get some external feedback and keep a check on employees on an individual level. While under-performers can be trained to do better, you can reward and recognize highly productive employees.


4. Ask for Updates Regularly: One of the simplest ways to measure work performance is by encouraging employees to give you an update on their activities daily. This will make your employees feel more responsible and motivated to work hard. You can organize a daily call or ask your employees to send you a list of their completed tasks at the end of the day. By taking updates regularly you will also get the opportunity to learn what problems your employees are encountering and what you can do to facilitate productivity within your organization.


5. Make Use of a Project Management System: Project management systems are tools that can help you in planning, organizing your company goals, and setting up deadlines for employees. These systems help you delegate tasks, define roles, divide responsibilities, set project milestones, and most importantly monitor the progress of your employees. By dividing large projects into smaller tasks, you can help your employees be more productive and track their work more effectively. Project management systems can also prevent the unequal distribution of workload and ensure that all your employees are contributing to the project instead of a few individuals.


Knowing how to measure employee efficiency is tough, as the definitions of productivity across industries do change dramatically. The above tips will help you in measuring employee productivity, however, you must always read up on new concepts and metrics to consider.


Setting unrealistic expectations and low employee engagement can negatively affect employee productivity. Engage your remote teams by hosting fun and interesting virtual team-building activities. At Eventyoda, you can book an event that suits and engages your team! Take your pick from over 200+ virtual activities we offer.

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