5 Simple Strategies for Measuring Productivity at Your Company
Nowadays, the whole world, especially the business world, has entered the data era. Business owners can track, record, and report on all activities during the workflow.
Unfortunately, with the advent of new opportunities, there are many problems and questions. What exactly do you need to track? What data is critical, and how should it be analyzed to get the desired result? Probably more of these questions arise when discussing the topic of worker productivity.
According to research, the average employee is only productive for 2 hours and 53 minutes per day. The more productive your employees are, the more money your company will make. There is a perception that productivity is the key to increasing income. But many do not even imagine how to properly control productivity so that it does not bring discomfort to workers.
In this article, we will try to understand this tricky issue. We’ll also look at some powerful methods you can use to measure your elusive “productivity”. The article will also provide some ideas for implementing these strategies in the company.
Use the Simple Output Formula
This method involves applying a very simple formula that you can use for any department in your company. By implementing this formula, you can immediately determine the value of “productivity” and get some actual numbers.
To use this strategy in your organization, select the outcome that you will be measuring. Usually, it is a specific ready-made unit or quantity of work performed. Find the number of resources that have been spent on achieving a definite result. For example, it could be the number of hours spent on production. After that, you must divide the output by the input. To better understand the situation, we advise assigning a dollar value to the results. This way, you can measure your cost-benefit ratio. We also recommend measuring non-manufacturing productivity in dollars instead of units.
This strategy is most effective in a factory-type setting, where each unit has a different size and performance. But this does not mean that other types of businesses cannot use this formula. You need to consider other factors and other types of roles. For maximum results, this strategy should be used in conjunction with others.
Collect 360 Degree Feedback
As you can imagine, the core of this strategy is to use feedback generated from co-workers to measure productivity. Each employee of the company will evaluate the level of performance differently. Don’t be limited to just one department. It is worth considering the opinion of each employee, from the ordinary manager to the CEO. With their feedback, you measure how well the employee performed their duties and contributed to the achievement of the company’s goals.
The only drawback is that 360-degree feedback works ideally only in companies where the team actively interacts a great deal. Small businesses are an example of such organizations. Before implementing this system, you should conduct short training for workers. They need to understand how to provide feedback correctly. Each assessment must be as fair as possible. No personal grievances should affect your appraisal. When it comes to personal grudges, 360-degree feedback contributes to counterbalancing any potential personal grudges.
There are many ready-made templates available on the Internet to make it easy to collect and analyze feedback. You can also use the templates provided as an example to create your own.
Get Things Done as Fast as Possible
Many business owners wonder if performance can be measured against a specific achievement. According to this strategy, you don’t care how many minutes are spent on a task, or when those minutes are spent, only what tasks are completed.
You have to break down each project into smaller tasks. There is much software that can help with this task. You can assign a specific task to the employee who shows the best performance results. Closely related to this strategy is KPI, in terms of the duties they’re responsible for. It is also possible to track how much an employee can accomplish during an hour/day/week/month.
By informing each employee about the goals, milestones, and deadlines of the project, you ensure that projects are completed on time. In addition, the more and faster employees complete outlines, the more they will be able to brainstorm new online business ideas.
Monitor Social Media
It is believed that any employee who posts various messages or photos on social networks like Facebook or Twitter during the working day is less productive and contributes less to the company’s development than others.
This strategy is quite radical because you need to develop definite rules for personal computer use during working hours. Also, your company should control the time that your employees spend on social media.
As noted earlier, this approach is very radical. Therefore, many companies do not support such a method because it restricts the freedom of workers. In addition, there are many more effective ways to monitor company performance.
Conduct Daily Check-In
Some business owners focus on the ability to stay on task rather than on output. Their team must report every day on what they are working on and what they have accomplished. In addition, employees also hold weekly and monthly meetings where they plan projects and set goals.
How you implement this strategy in your organization is entirely up to you. You can use Google Hangouts and schedule a daily event on your calendar. You can also use various programs such as Slack.
Daily validation can be the best way to improve efficiency for employees who need validation for hard work and struggle with procrastination. If you misuse the daily check-in system, you can create a micromanagement system, which you want to avoid at all costs.
The methods listed above will not only help your company achieve results faster and increase revenues. With their help, you can assess the talents and aspirations of your employees. Employees can understand which strategies they work best with and improve those areas where they are weak. They can also improve focus and foster ownership and leadership skills within your team.