How to Measure Productivity of Employees?

How to Measure Productivity of Employees?

Learn effective strategies on how to measure productivity of employees in your organization. Explore methods, tools, and best practices for optimizing workforce efficiency.

In a business, employee productivity is directly related to company performance. High employee productivity will help the company continue making profits and compete with its competitors. However, if the opposite happens, the business will undoubtedly be disrupted, which will result in time and material losses for the company. This, of course, needs to be anticipated so that this does not happen.

According to the experts, several factors affect productivity, including knowledge, skills, abilities, period of time, employee performance, attitudes, and behavior. According to them, if an employee owns these factors, he should be able to complete his work better and productively.


What is an employee’s productivity?

Productivity is the product of measuring employees’ efficiency in doing the work against time. Employee productivity is the work done by any employee within a specific time limit. Productive employees are crucial for the success of any organization.

Employee productivity helps organizations make informed decisions and measure the employee’s performance to set short and long-term goals.

Employee’s Work Productivity Indicators 

To determine productivity, we cannot calculate it directly. There are productivity indicators that are used as the basis for the calculation, namely: 

Working quantity

 It is a result achieved by a certain number of employees compared to existing standards or set by the company. 

Work quality 

It is a standard of results related to the quality of a product produced by employees. The quality of work is very influential on the employee’s ability to complete work technically compared to the standards set by the company. 


It is the degree to which an activity is completed at the beginning of the specified time, seen from the point of coordination with the output results and maximizing the time available for other activities. Timeliness is measured from employees’ perceptions of an activity provided from the beginning until it becomes output.

Factors that Influence Employee’s Work Productivity 

It turns out that employee work productivity in a company can be influenced by several factors among them: 

Skill level 

Skill levels are determined by formal and informal education, training in management and skills in industrial engineering. Employees who have education and training will certainly have the potential to increase work productivity. 

The relationship between workers and organizational leaders. 

The relationship between superiors and subordinates will influence daily activities. How the superior views subordinates, to what extent subordinates are included in goal setting. The relationship between superiors and subordinates always involves the efforts of a person (leader) to influence the behavior of a follower in a situation within a company in order to increase work productivity. 

Productivity management 

It is efficient management regarding sources and work systems to achieve sources and work systems to achieve productivity. Employee productivity is influenced, among other things, by providing motivation by providing compensation (salary), welfare benefits, and improving the quality and abilities of employees.

Why is it important to measure employee productivity?

Productivity is a crucial part of any employee’s performance, directly linked with company productivity. Measuring productivity gives you graphics about your top and low performers. It also helps in project management and arranging workshops to fill the gaps.

Productivity is not only linked with the individual employee, but it works as a whole team. An employee’s lack of productivity can affect the entire team’s productivity.

How to measure the productivity of employees?

Set Objectives

It is essential to give employees specific tasks and goals to achieve to see their output. Then you can easily measure the productivity of each employee’s job. The task’s output can also help measure an employee’s productivity. Supervising the employee and providing solutions when they are in trouble is essential.

Quantitative Measurement

The quantitative measurement method is the easiest way to measure productivity. Numbers like daily files, overtime hours, calls per hour, customer complaints, customer feedback, etc., can estimate it. This method also gives you accurate results.

Measuring by Profit

It is another effective method to measure employee productivity to see individual goals. In this method, you can measure productivity by employee profit. If the revenue is increasing, it means the employees are productive.

Daily Catchup

It is essential to get updates from the employees daily to align them with company goals. Daily updates can help you measure the productivity of an employee effectively. The daily report helps measure productivity by productivity increase, individual productivity goals, business goals, single input, actual output, and individual tasks. It keeps employees on their toes, and they don’t waste time on distractions.

360 Degree Feedback

It is considered one of the effective methods to measure employee productivity. In this method, the feedback of co-workers is used to measure productivity. This method is also helpful in creating a friendly environment in your office where co-workers interact with each other and know the job nature of each other.

Quality Work

Sometimes an employee attends to 30 customers daily, but some need to be handled better. Therefore, it is equally important to understand and measure the quality and quantity of work.

Monitor the Attendance

Projectivity has a strong relationship with punctuality and regularity. If an employee comes to the office without a genuine reason to stay absent, the employee works on productivity. At the same time, the employee who stays absent without a logical explanation can be a no productive employee for a company.

Track Individual Performance

For project work, sometimes the managers only look for teamwork to measure the productivity of the entire team; it is essential to see the work of each individual and measure the productivity level.


No matter how hard the company works, people procrastinate, and their productivity could be better. Such employees should be taken into consideration to ensure smooth work performance.

How to increase employee’s productivity at work? 

Encouraging productivity in the workplace is a complex task and can certainly be difficult to distinguish from increasing productivity. Increasing productivity is more related to increasing productivity through external incentives such as preventative measures, negative reinforcement, and the application of technology to replace human labor. Encouraging productivity is more of an effort made by workers. 

 Grouping the Best Workers 

Top companies tend to group their best employees to work together on projects that are important to the company. 

First, productivity is driven in areas that have the greatest impact on the organization. 

Second, the best workers tend to be more competitive so that a competitive environment forms itself that supports productivity positively. 

Provide creative benefits and rewards (other than in the form of money) 

It’s no secret that happy and satisfied employees are more productive than those with high salaries. Therefore, by providing creative benefits and rewards, workers will be happy to return the kindness/rewards given by the company. 

Promote a productive company culture 

Another way is to promote a productive work culture. By selecting and recruiting the best workers who are highly motivated and objective-minded, it increases the number of productive workers in the workplace and creates an environment that rewards productivity. 

Measuring productivity is at least as important or more important than increasing productivity. Accurate productivity measurement is a form of encouragement/support for workers. By providing objective, measurable targets, they know they are being assessed fairly, and the results they are showing are commensurate.


This article outlined the best ways to measure the productivity of employees. These measures are helpful in tracking, calculating, and measuring employee productivity.

If the administration provides a conducive and friendly working environment, the employees work efficiently, and their productivity automatically increases.

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