How to Effectively Measure Employee Productivity

As hybrid working becomes the norm, the way we measure employee productivity is changing. To effectively operate a business in this new paradigm, we must re-examine what productivity looks like and why it should be measured. Read on for information on productivity tracking and how you can enact this in the workplace. 

Why measure employee productivity?

Productivity is more than just output. Measuring employee productivity allows you to gain a better understanding of how your business is performing, enables individual employee growth and skill development, and creates employee alignment with the company’s bigger goals.¹

With a greater understanding of how your employees and overall business operates, you can also boost employee retention and job satisfaction through workplace culture all of which will lead to a productivity boost for your business. 

4 employee productivity tracking tips you need to know

Measuring employee productivity is important, but do you know how to action this in the workplace? Get the right tools and set clear goals to ensure you and your employees are getting the most out of the working day. We have listed four helpful tips for measuring employee productivity in your workplace. Take a look: 

1. Create clear goals tailored to your workplace and employees

The most basic method of productivity tracking is dividing work output by work input, including resources and time spent². However, to measure productivity effectively, goals and objectives should be tailored to your workplace and your employees. Employees perform better when they have clear goals to strive for³.  

SMART goals, in particular, are an effective way to set goals for your business and individual employees. SMART goals are Specific, Measurable, Achievable, Relevant, and Time-Bound. They should have a desired outcome that is clearly understood, be able to be measured by numbers and data, be realistic to maintain the enthusiasm needed to reach them, be aligned with the mission of the company, and have a clear deadline. Setting goals like these will help you identify strengths and weaknesses, provide motivation to succeed and encourage employees to rise to the challenge⁴.

2. Measure employee productivity with regular progress check-ins

Employee wellbeing and productivity are connected. When employees feel good and enjoy their working culture, they are absent less often and more productive at work.

To monitor your employees’ progress, make regular check-ins a priority. Not only do regular check-ins help track employee productivity, but they also provide an opportunity for employee recognition, engagement, and an opportunity to air any concerns. When employees feel recognised and appreciated for their work, they feel more connected to the work, their team, and the organisation  as a whole. As a result, they are much more likely to work just as hard on the next project. This also leads to increased retention of quality employees and decreased employee turnover, both of which are critical in productivity tracking spending fewer resources on hiring and training means greater focus on achieving company-wide goals⁵. This doesn’t have to be a formal weekly meeting either. A regular check-in over a cup of coffee can be an enjoyable way to connect with employees and assess where they are in reaching both short-term and long-term goals.

3. Encourage regular self-assessments and peer assessments

Peer reviews can shine a light on how your teams and employees function on a day-to-day basis. Not only does this help measure productivity but it provides an opportunity to learn from other parts of the business, build problem-solving skills, boost communication within teams, and ensure that quality work is being recognised. Self-reviews offer even more insight, revealing any personal goals employees might have at work, and highlighting strengths and weaknesses which managers can use for company-wide goal setting⁶. 

4. Invest in the right tools for employee productivity tracking and check-ins

Tracking productivity week on week, month on month, and year on year, requires access to data and the right tools. Digital productivity and management tools are easier and easier to come by, and so valuable in measuring employee productivity. Once these tools have been used to track tasks, time taken, and targets reached (or any other markers of productivity you are using), results can then be assessed by managers over time to measure whether productivity is increasing, decreasing, or remaining steady⁷. New processes and goals can then be put in place if necessary.

To make this process easier for all, using digital productivity tools helps both employers and employees keep track of individual goals and tasks and, as everyone has access to the same information, this keeps employees and teams on the same page while providing a streamlined approach to task delegation.

Measuring employee productivity is vital in helping your business achieve its aims, so make sure you are using the most effective techniques for productivity tracking. Implementing these tips should see your workplace productivity rise in no time, and help you assess where you could be doing more. 

Next, discover our guide on how to increase workplace productivity for more helpful information here.
 

1. Reasons for Measuring Employee Performance, Culture Amp https://www.cultureamp.com/blog/reasons-measure-employee-performance 

2. How To Measure Productivity, Indeed https://www.indeed.com/career-advice/career-development/how-to-measure-productivity 

3. Building a Practically Useful Theory of Goal Setting and Task Motivation, APA PsychNet https://psycnet.apa.org/record/2002-15790-003 

4. SMART Goals, Forbes https://www.forbes.com/advisor/business/smart-goals/ 

5. The Importance of Employee Recognition, Quantum Workplace https://www.quantumworkplace.com/future-of-work/importance-of-employee-recognition 

6. What does it mean to self evaluate? Indeed https://uk.indeed.com/career-advice/career-development/self-evaluate 

7. 7 Ways to Improve Productivity in the Workplace, Notion https://www.notion.so/blog/productivity-in-workplace