In fact, knowing how to calculate employee productivity is a big step, since it guarantees the daily decisions allowance with real information, as well as putting together strategic plans for the continuous improvement of this number. The question is: how to do this?
Several tools may be employed. Among the main ones, it is possible to highlight the use of SMART work goals, new technologies, and 360-degree performance evaluations – in addition to the monitoring of key performance indicators, which must be constant.
This is because, according to recent research, only 39% of working time is taken advantage of in a really productive way. And the rest? You get lost in unnecessary meetings, chats, and continuous checks on emails.
With that in mind, we have separated this guide especially for you, where we will teach you how to calculate employee productivity effectively. Interested? So keep reading and stay on topic!
Monitor the achievement of work goals
Work goals work like a compass, directing the entire team to reach to what the company wants. For this, it is necessary to know how to develop functional goals and share them with the team, in addition to collecting them continuously.
Most important, however, is that these goals also act as a great productivity thermometer.
Productive professionals often beat them regularly, even in the most adverse contexts. Already the unproductive tend to make excuses and outsource blame for failure. That is why you need to develop smart goals.
Today, one of the most commonly used goal patterns is SMART, an acronym for 5 words. According to this standard, a good goal should be: specific, measurable, achievable, relevant and temporal, that is, with a well-defined deadline.
Thus, when working with goals, the focus is no longer on the number of hours per employee worked and is now on the results, effectively achieved. And this is very important. After all, always remember that productivity is not about the time worked, but about the results delivered within the company.
Track key performance indicators
You can use Key Performance Indicators, also known as KPIs in the same direction. However, it is necessary to know and know how to apply the right indicators, as well as to feed them with real information.
In this sense, a great indicator is the conversion of sales. Basically, it consists of knowing how many proposals (or budgets) have turned into actual sales for the company. To conclude the result in percent, simply divide the total sales by the number of budgets issued in the same period, then multiply by one hundred.
Another indicator that you can use is the absenteeism rate. It covers the percentage of employees who abstain from work, whether due to delays or absences. To identify it, simply divide the number of hours not worked (faults or delays) by the number of hours actually worked, and multiply the result by one hundred.
There are still other indicators, just define the ones that you consider most important in your case. So you can always have strategic information that you can use to get better team results and encourage your high performance.
Use the Jack Welch Tool
Jack Welch was the CEO of General Electric for a few decades, during which time he managed to double the company, making it much more productive.
To that end, one of its main tools is known today as “the four types of collaborators of Jack Welch”, used to evaluate the professionals who were productive and adherent to the organizational culture.
This analysis of employees is based on two main variables: results delivered and values embraced. To use it, employees should be evaluated in each value of the company, with a score of 0 to 10. Then use the same numbering to evaluate the employees in relation to the indicators and goals.
In the end, it will be possible to identify 4 types of collaborators:
- Those who deliver results and embrace values – should be promoted, if possible;
- Those who do not deliver results, but embrace values – must be trained;
- Those who deliver results but do not embrace values – must be turned off;
- Those who do not deliver results and do not embrace values – should be turned off.
In fact, there are always many doubts about employee # 3, who delivers results (is productive) but does not embrace values. But the best bet is to turn it off, and the reason is simple: his reckless attitudes can “contaminate” the whole team, causing more serious problems for the company.
In other words, supporting it can cost a lot in the future.
Perform 360-degree performance appraisals
Performance appraisal is a crucial activity in people management. With it, it is possible to know if professionals are being productive as they should, as well as where the gap between the real and the ideal lies. And one of the best-known models of this assessment is the 360 degrees.
In this case, employee performance is judged by several people around you, such as your superiors, subordinates, and co-workers. The goal is to have a holistic view about it, that is, to know how it behaves and produces in the most diverse contexts of work.
A good performance assessment ensures that any posture problems are identified, which can be eliminated with training or feedback. And, in this way, it is possible to motivate new behaviors, more productive and according to the desire.
There is also 180-degree evaluation, in which only the immediate superior evaluates the performance of the employee. You can use this but it offers a rather comprehensive overview.
Count on the help of technology
Finally, it’s important to understand that technology can help you a lot. In fact, it is increasingly necessary to integrate it into the day-to-day management of people.
Today, good software can help monitor the results achieved, the progress of the projects being developed, the level of staff training, and so on. As an example, we can highlight tools that help in the management of projects or the daily control of points, for example.
In addition, it is worth highlighting that productivity must be thought from the first stages of the relationship with professionals, such as the recruitment and selection process. Therefore, it is also important to have a system that optimizes this task, making it more agile and efficient in acquiring real talent for the company.
Anyway, now you’re on the subject! Then, apply the tools cited to measure the productivity of your employees. Then offer feedback and training to get even better results. In the end, no doubt, the whole company will benefit.