Performance measurement in a company: What is it?

Published on 02/04/2024

Performance measurement in a company: What is it?

Published on 02/04/2024
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Performance measurement in a company: What is it?

Everything that can be measured can be improved. This principle is often used to talk about metrics as an essential element of improvement, especially for enhancing productivity in an organization. Just as we measure our health or the effort we exert during physical activity, it’s necessary for organizations to be aware of their employees’ productivity levels and to know what’s really happening in their company.

Many things are measured in people’s daily lives, but the importance of measurement is often overlooked. To understand the results achieved in the course of any activity and whether they are favorable, measurement is necessary to determine if objectives are being met. Therefore, it’s crucial to know what the key indicators are that we should consider in our company.

With today’s existing technologies, companies find it easy to know the results they are interested in regarding any data or process, more quickly and accurately. There are no longer any excuses for not measuring. Companies are interested in measuring many aspects: their economic results, performance, profits, losses, among many other variables. An important aspect that organizations are beginning to measure today is the productivity and performance of their employees. Each company must know its own productivity formula.

Measuring an employee’s performance in their work helps companies understand their efficiency and how they carry out their tasks. To assess this productivity, key indicators must be taken into account for measurement.

The main indicators, although they may vary depending on the study to be conducted, are as follows:

– Time spent on productive activities

– Representation of productive time over total activity

– Time spent on non-work-related issues

– Interruptions, distractions, etc. during working hours

– Measuring the worker’s focus-effort

– And so on.

More and more companies want to know the productivity of their employees and are open to seeking improvements in this field. This is reflected in the latest report on productivity and managerial behavior in Spain, published by NFOVA and APD, based on the opinions of 1,935 managers from different parts of Spain. The report states that:

– 60% of respondents affirm that the current model for measuring labor productivity is not efficient.

– 42% of the total participants in this study agree that the rules for measuring productivity are not clear.

– 18% say there are no defined rules that allow for efficient productivity measurement.

Once companies know their productivity levels, it’s necessary to share them with the employees so that they are aware of their efficiency at work and how they can improve their performance in addition to taking actions to optimize work time, focusing on the most important tasks, and using resources more efficiently to achieve the initial objectives.

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