Examples of productivity indicators

Published on 24/04/2024

Examples of productivity indicators

Published on 24/04/2024
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Examples of productivity indicators

KPIs and productivity indicators can act as intertwined categories on many occasions. Sales goals and profit margins are all examples of KPIs and/or productivity metrics that companies reference, but it goes much further.

Sales bring in profits; the management of those profits is strongly influenced by the metrics used to measure productivity in a business. Because of this, there are performance indicators to help increase employee productivity for each department. Professionals in human resources, management, customer service, and more can benefit from the data in their employee productivity metrics.

What are metrics or indicators?

Metrics and productivity indicators are measurement methods. They are, by definition, how companies measure productivity, usually of their employees.

How to measure productivity?

Measuring productivity can mean many different things. Do employees finish their projects, on time and to instruction? And the outcome of those efforts? If they do all those things as they are told, but there is still no sales growth, where are adjustments needed? Finding the answer often requires more than one metric. You cannot simply divide output by input to measure productivity.

The way we measure it can vary between companies. For example, some companies believe that allowing their employees to use social media during the workday can be a productive habit, while other employers consider it a reason for disciplinary action. Without these measures, it would be more difficult to corroborate any claim, one way or another.

Examples of productivity indicators

Overtime productivity indicators

Overtime is a good way to measure the cost and performance, individual employees and productivity indicators, although considering the context is important for this measure of productivity. For example, if the company has an increase in sales, people have to work harder to meet the promises they are selling. If overtime is the direct result of an increased workload, it may indicate that more talented employees need to be hired instead of reviewing those already in place.

In addition, look more closely when evaluating overtime in combination with other examples of employee productivity KPIs, such as workload. You can see and, therefore, work to prevent the mistakes that inevitably occur in an overworked team. Another common symptom of an overworked team is a higher absenteeism rate.

Overall Workforce Effectiveness

Overall workforce effectiveness is a multifaceted metric that connects a series of details, such as the amount of staff, shift effectiveness, and more. This productivity indicatiors is essential for human resources departments because it provides the information they need to answer complicated questions about personnel.

Calculating this metric by dividing total sales by the number of employees is a very simple and direct way to get the answer. However, once again, while this is a great metric, there should always be other indicators to consider that impact productive performance, such as the amount of product delivered, quality control, and more. Here is a manufacturing element that appeals to all industries. Professionals calculating overall workforce effectiveness are able to understand exactly what the company has achieved and how efficient its workforce is on a regular basis.

Turnover Rate

The turnover rate is an essential productivity indicators measure used by human resources professionals to measure employee retention. Turnover is an inherent part of a company’s operation. For better or worse, employees will come and go according to their talents and desires. The turnover rate metric gives managers the ability to forecast a need for talent replacement, so that no residual duty of an outgoing employee remains unassigned.

To calculate the turnover rate, choose a period of time. Month to month is a common method here. From there, divide the number of separations by the number of active employees during that time period.

A low turnover rate is a sign of happy employees. Ultimately, it leads to, at least, lower recruitment and training costs. If your company has a high turnover rate, look to your managers to identify areas that require additional attention.

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