Just because your employees are feverishly working in their offices the entire day, does not mean that they are being productive. The truth is, it is possible to measure productivity of any employee. However, productivity will depend on the type of business that you operate. Simply put, productivity is the portion of hours worked, per total output. Moreover, output is measured by volume, quantity of produced items, and dollar value of produced items.
Depending on whether you are operating a manufacturing business, a service type business, or sales business, you can measure productivity by the following:
Manufacturing Business
The best measurement for productivity with this industry would be to use:
*Output per worker-hour.
*Number of worker-hours needed to produce 1 unit of product.
Service Business
Service organizations have a more difficult time in measuring productivity because there is no tangible output of goods that can be physically measured. However, it is possible to measure productivity when you place some creative measures in place. For instance, you can measure the following:
*The number of calls made within a given time.
*The number or dollar amount of billings generated.
*Total amount of projects completed within a given period of time.
Sales Industries
In order to effectively measure productivity for sales employees, you should measure them by these factors:
*Volume of sales dollars per unit of time: Sales volume alone does not represent true productivity. Due to the various accounts being serviced, some sales are more profitable than others. Therefore, the amount of time spent on the account to make the sale should be factored into the equation.
*The total number of new accounts opened.
*The amount of calls made to non-producing accounts: Sometimes sales agents are making service calls to existing clients, which does not produce additional sales. Therefore, you should measure these calls in order to regulate this activity accordingly.
*The dollar amount consumed per sale: You should determine the amount of money being spent per sale acquired.
