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How To Measure Employee Productivity

How To Measure Employee Productivity

Running and managing a business is nothing but a game of numbers. Form the cost of production, inventory, warehouse and supply chain expenses, management costs, wastage and redundant expenditures to the loss and hundreds of other costs and expenses compared to the net revenue earned and the resulting win or lose situation for the organization; everything involves numbers.

However, since an organization is majorly driven by its paramount asset, human capital, the profit or loss situation for any organization primarily stems from the efficiency or inefficiency of the employees.

Hence, this comes as a huge compulsion upon organizations to evaluate the efficiency, performance, and productivity of their workforce. Performance evaluation and analysis is an essential function of organizational management and provides an intricate insight into the working habits, their regular productivity and their level of commitment and responsibility towards their work.

An effective analysis of employees’ performance enables the organization to find the system’s escape clauses and the performance deficit areas. This way, the organization can set realistic goals, formulate a short and long-term strategy, and devise strategies to leverage and optimize the employees’ performance and productivity. Here we are going to share some smart tips to measure and analyze your workforce’s productivity.

Periodic Vigilance

Incorporate a system of random, periodic vigilance to get a real-time insight into the status of work at any given instant of the day. A surprise inspection reveals a lot about what is happening at the functional hours and how the employees are making it through the day.

Task-Based Evaluation

Evaluate your employees’ performance based not on the number of days or hours worked, but on the number of tasks completed within a specific period of time. This will provide a better insight of the performance of each individual employee and their efficiency.


Absenteeism is a growing concern for the employers since it decelerates the pace of performance and growth. Keep a track of the time entries and the attendance records to evaluate the punctuality of your workforce. Time and attendance records are a great way to measure performance.

However, you need to ensure that these records are accurate and do not have any alterations or modifications. Automated systems like time and attendance software are an effective tool to make accurate time and attendance recordings.

Client Feedback

Customer feedback is an effective tool to measure the performance of your employees. This not only helps you gain a realistic insight about the measure of employees’ performance, but also helps you assess the perception of your organization in the market. Ask your client about the quality of product and service they have received through surveys and feedback systems.


Forming teams and fostering collaborations may bring out the best in your workforce. It not only increases the level of responsibility and dedication towards their work, it also enhances their skills and strengths.

Making an employee responsible for a particular task in a team setting increases efficiency and makes them an ace in their own domain. It also makes it convenient for the organization to identify the right person for the right job and make a better evaluation of their performance.

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