Difference between productivity and yield

Published on 04/04/2024

Difference between productivity and yield

Published on 04/04/2024
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Difference between productivity and yield

Do you know the difference between productivity and performance? Often, these two terms are used interchangeably, but although they complement each other, their meanings are not the same. Therefore, we will explain their differences and which tool allows you to identify the level of each during your employees’ work development and team.

Differences between productivity and performance

To better understand the difference between these two terms, the best path is to define them separately to highlight the aspects that make up their meaning and understand their influence on employees’ work and the company’s growth.

Work productivity is essentially a performance indicator that shows the efficiency with which employees produce goods or services and meet goals and objectives, within a company.

Technically, it is the relationship between human or material resources used and the amount of goods and services produced in a specified or predetermined period. In terms of employees, productivity is the engine of performance and efficiency during their work development.

One of the most important resources of a company is human capital, or people, due to the influence they have on the results of any activity. It is these who drive the productivity of a business.

Work productivity is an essential factor in promoting the profitability and competitiveness of any company.

To increase productivity in a company, it is fundamental to maintain a suitable and healthy work environment, as well as to measure organizational culture and encourage team motivation.

Achieving a high level of work motivation in employees fosters productivity, yet it is one of the most significant challenges in the business world.

Indeed, work productivity is the most concrete way in which managers, group leaders, and even the workers themselves can fully understand their roles and what is expected in terms of performance within a company.

But beyond the definition of the concept of productivity, the most important aspect of this factor is its measurement. Companies must find tools that allow them to measure the level of their employees’ productivity objectively, simply, and realistically, thus understanding how time is managed in different teams, how they manage working hours, and task distribution.

Having systems to measure work productivity allows the company to maximize the use of resources and make a conscientious distribution of funds allocated to each development area.

Identifying the levels of work productivity in a company allows for a better understanding of the teams’ workflow, offering the possibility to visualize dynamics that may hinder the internal processes of the company’s growth and act appropriately with improvement strategies.

Now that we have a clear understanding of the meaning and value of the term “productivity,” it’s time to define work performance.

Performance refers to all the benefits or results obtained from the productive process, the fruit of work development. Specifically, it is the product of the work of an employee or a group of employees, or in economic terms, the profit obtained from an investment.

This term is often synonymous with efficiency, as it highlights the results of a company and helps to keep under control the impact of the company’s work activities, whether by employee or workgroup. In this way, it’s easier to design improvement strategies and promote the profitability of the business.

Indeed, business metrics, which are those that show the results of all processes, are called “Key Performance Indicators” and show a measurable value of the progress of a company’s objectives, indicating whether they have been achieved or not, based on a specified period.

Now, do you understand the difference between productivity and performance clearly? Practically, productivity is the indicator that reflects the effectiveness of a set of actions that make possible, or not, the level of performance of any process within an organization. Performance is the outcome of this set of actions and demonstrates the benefit of the same.

To identify the influence and difference between productivity and performance, translated into objective and clear data, companies rely on productivity measurement tools or software. Systems that automatically calculate the efficiency and performance of the work invested by employees in certain products, projects, or services, and reflect the performance, or rather, the result obtained from the work effort.

Identifying the levels of productivity and performance in employees’ work

Specifically, identifying the levels of productivity and performance of the work team allows understanding their differences. These results can be obtained by conducting a performance evaluation.

This is a tool tasked with verifying the degree and process of achieving the individual objectives of each company employee.

The performance evaluation allows identifying the difference between productivity and performance of each worker’s labor process, measuring in a complete and objective manner what the professional does, at an individual and team level.

This evaluation tool then measures the productivity of the employee’s work, the performance of their productive process, the skills achieved, and the professional behavior developed.

This evaluation is part of human resource management and is generally carried out with dedicated tools to objectify the data. Any organization that wishes to be more competitive and efficient must perform performance evaluations on its employees and work teams.

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