Productivity metrics are a crucial component of any successful business. Monitoring employee productivity can be valuable in gauging staff performance and identifying areas to improve. By tracking employee productivity metrics, companies can maximize output and reach new levels of success.
With access to the right tools, measuring productivity is easier than you might think — but what exactly should employers be measuring when it comes to tracking productivity? Read on as we explore how to measure employee productivity with these metrics to achieve optimal results.
Why measure productivity?
First — some background on why being able to quantify productivity is so critical. Research indicates that less than 60% of the total hours worked are actually productive. That means companies are paying for a lot of time that’s not getting them anything beneficial or rewarding. Thus, productivity metrics are paramount to evaluate how resources are utilized and if targets are being met.
By tracking these performance metrics:
- Companies can ensure their workforce works effectively and efficiently toward achieving organizational objectives.
- HR professionals can make informed decisions about resource allocation and personnel development to maximize efficiency across all company departments.
- Employers can develop a culture of accountability and performance excellence.
- Managers have an understanding of where employees might need additional support or training.
- Employers have an insightful look at what’s working and successful over time and what should change.
The result of tracking productivity? Knowing and implementing productivity metrics can enhance efficiency, increase profitability, and improve morale among staff members who feel their efforts are being recognized and rewarded appropriately.
10 Employee productivity metrics to help maximize output
Being able to assess, track, and monitor employee performance is paramount. Knowing what performance metrics to use to measure and maximize employees’ output is no small feat, but the following 10 employee productivity metrics can help.
1. Track time hourly
Measuring the amount of work an employee completes in a given time period will help you assess performance against expectations. In addition, tracking this figure over time can also reveal if team members are achieving, or even surpassing, the expected productivity rate.
2. Quality assurance scores
Quality assurance scores track how well an employee meets quality standards for each task they complete. They provide valuable insight into the efficiency of individual workers and an entire team’s overall performance.
3. Track the total number of tasks completed
Keeping tabs on the total number of tasks each worker completes helps identify areas where employees may need more support, training, or resources. Focus on assessing and eliminating things dragging down productivity — audit processes and requirements that may be hindering the workforce. Some research suggests that the average organization loses an astounding 20% of potential productivity simply due to the timely — often unnecessary — procedures they require.
4. Track attendance
Attendance rate is an important indicator of more than just reliability and dedication. It can also ensure there are no gaps in coverage due to absences from work or issues related to burnout or stress-induced illnesses caused by unreasonable workloads. A high attendance rate indicates higher productivity levels overall.
5. Track task completion time
Tracking the time each employee takes to complete certain tasks provides insight into who needs assistance managing their workloads more effectively, so they can produce greater results with less effort expended over a given period. This helps ensure that work hours are used as efficiently and productively as possible.
6. Mental health checks
Employers should keep tabs on the utilization rates of mental health services among their employees. In part, this can determine whether people are comfortable enough to seek help when they need it. Mental health concerns and stress can significantly affect workplace productivity if not managed proactively instead of reactively. An emphasis and focus on mental health well-being pays off, too. Research from Oxford University shows that happy workers are 13% more productive.
7. Gather customer feedback
Gathering customer input on products and services can help businesses recognize what works best and lets them modify accordingly. If employees and resources are going to products and services that aren’t successful, that’s time, energy, and money not being put toward things that will offer greater ROI, affecting overall productivity at a company-wide level.
8. Don’t forget about employee feedback
Gathering employee feedback ensures everyone’s voice is heard. Employees who feel heard — and thereby, valued — have higher morale and increased motivation, so they’re more engaged. Research shows that engagement translates to improved employee productivity.
9. Compare job descriptions against duties
Making sure job descriptions accurately reflect the duties being performed is important on a number of levels, including guaranteeing compliance with regulations. This exercise can provide clarity regarding roles and responsibilities while ensuring realistic expectations are based on actual data. It can help reduce employee frustration or confusion, allowing operations to run much more smoothly and efficiently.
10. Track employee sales & sales growth
One of the simplest ways to track performance and productivity is by monitoring sales and growth. Beyond just tracking an employee’s quarterly or annual sales, you can also assess YOY or period growth, say, how much someone sold in Q4 vs Q3.
How to identify the right productivity metrics
No definitive, single method exists for gauging work efficiency. Therefore, it’s necessary to customize the approach according to an organization’s size, sector, and other variables like products/service offerings.
Take the company’s size into consideration
Organizational magnitude is a significant factor in selecting the most appropriate metrics for your business. Smaller organizations should focus on fewer measurements that capture overall performance. At the same time, larger companies may need multiple layers of data points that track individual team members and departmental objectives. Additionally, if you offer products or services that require extensive customer interaction, you will likely need additional measurements related to customer satisfaction levels, such as response time and quality assurance ratings.
Consider your company’s industry
The industry sector also plays a role in choosing effective measures, since each industry has unique challenges and requirements for success. For example, manufacturing companies typically measure production output. Professional services firms rely on client feedback surveys and project completion rates to gauge success in their respective fields.
Emotional elements shouldn’t be overlooked
Employee morale and job satisfaction can be equally important when examining productivity. To get a more comprehensive view of employee sentiment, employers should examine metrics like days absent due to illness and the rate of personnel changes. These figures can give insight into whether employees feel appreciated by management or if they’re feeling overburdened/under-compensated — both issues that could affect productivity.
Provide mental health support
Providing resources like access to counseling sessions can help boost motivation levels amongst staff members, resulting in higher levels of efficiency across departments. By offering this kind of assistance, employees believe that they matter. Health and emotional support are vital for any industry in maintaining employee happiness and productivity motivation.
How to track productivity metrics and reach new levels of success
Workforce productivity metrics are something all organizations must focus on if they hope to grow and reach new levels of success. Here are a few key ways to measure employee productivity:
Track time
Keeping track of employees’ time management skills is crucial for determining if they’re maximizing day-to-day activities. Notice if employees are taking longer than usual on tasks. It may be time to intervene with additional training or support from a mental health program.
Track task completion rate
How quickly and accurately employees complete assigned tasks should be tracked as part of an overall assessment process. To determine whether someone has what it takes to be successful in their role, or if further training or resources are necessary, tracking task completion rate can provide valuable insight.
Review customer satisfaction ratings
Employee performance directly affects customer satisfaction ratings, so tracking responses and feedback can provide valuable information about a team member’s productivity. Reviewing customer feedback surveys can identify areas where improvement is needed so action can be taken accordingly.
Assess overall efficiency & engagement
The ability of each team member impacts the efficiency rate across all departments within an organization, so it’s crucial to keep tabs on who’s contributing what percentage of work output over time. By tracking this metric regularly, it’s easier to understand who needs extra support and which strategies could increase employee productivity.
Employee engagement and productivity go hand in hand. Engagement is another critical component for the financial success of a company. Studies found that highly engaged employees can generate up to 21% higher revenue.
Offer mental health programs
When employees have access to mental healthcare, they can address issues in real-time, rather than putting off getting the help they need. The right program partner that offers therapy for employees will provide metrics and detailed reporting that can give valuable information about productivity and employees’ mental and emotional well-being.
Boost employee productivity with Talkspace
Understanding the significance of workforce productivity metrics is essential. Talkspace Business can help companies achieve this by providing mental health services for employees.
Talkspace offers virtual therapy with licensed therapists tailored to each employee’s needs. Access to professional support without having to take time off work or leave home can be beneficial on every front. Talkspace makes it simple for employees to quickly get the help they need, so they can focus on their job and be as productive as possible, instead of worrying about things that slow them down. Request a demo and try our mental health benefits calculator today to learn more about the positive financial impact of investing in your organization.
Sources:
- “You Waste a Lot of Time at Work Infographic.” Atlassian. Accessed February 22, 2023. https://www.atlassian.com/time-wasting-at-work-infographic.
- “Great Companies Obsess over Productivity, Not Efficiency.” Harvard Business Review, March 1, 2017. https://hbr.org/2017/03/great-companies-obsess-over-productivity-not-efficiency.
- “Happy Workers Are 13% More Productive.” University of Oxford. Accessed February 24, 2023. https://www.ox.ac.uk/news/2019-10-24-happy-workers-are-13-more-productive.
- Schwartz, Jeff, Brad Denny, and David Mallon. “Belonging.” Deloitte Insights, May 15, 2020. https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2020/creating-a-culture-of-belonging.html.
- Harter, Jim. “Employee Engagement on the Rise in the U.S.” Gallup.com. Gallup, August 18, 2018. https://news.gallup.com/poll/241649/employee-engagement-rise.aspx.