Workplace Productivity: What is Work Productivity? How To Measure

Employees on their laptops applying workplace productivity tips.

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Many managers have been obsessed with improving their workplace productivity for decades. This obsession has led to a variety of different theories and philosophies on the topic, but they all focus on one thing – how much work is accomplished in the workplace. Workplace productivity can be measured in many ways, but it’s important to understand what these numbers mean before you try to improve them.

Your business is only as good as your employees. The saying goes to prove this statement true, “Your company can have the most lavish surroundings in some of the best neighborhoods and still be doomed without an excellent workforce.” You may have all these materials but it’s worthless if you don’t know how to employ them correctly or on time.

A business’s workforce is a considerable contributing factor to its ability to be productive. This means that workplace productivity can not only affect the company but also how well they perform in general. Poorly motivated and uninspired people are exactly what companies need to watch out for because their actions might have an effect on your bottom line! It makes total sense that this would happen as it helps determine whether or not you’re going to turn a profit so make sure every employee within the organization knows about productivity being measured at all times.

In this article, we will discuss what workplace productivity is, how we measure or calculate it, and why it matters so much.

What is Workplace Productivity?

 

Productivity is a simple formula, as long as you know what to do with it. It’s just like this: Productivity = Output ÷ Input (or P=O÷I).

Productivity is a tricky concept because when you’re talking about work ethic and production output, it’s really subjective. The data may be telling us that we need to improve our productivity in certain areas or ways of working but the advice on how to do so can vary from person to person depending on what works best for them.

This is the heart and soul of successful management. You can have all these charts, graphs, number sequences – but it will never get you anywhere if you don’t know what to do with them once they show up on your desk in front of those who are actually working for you.

It’s not enough just to run numbers or create complicated KPIs- without taking into account what lies between input data and out output results- any changes that may seem necessary based off said inputs won’t make much difference from an impact perspective because there isn’t always going to be someone willing (or able) take action after seeing such information.

Measuring Employee Productivity

 

With the labor productivity equation, you can measure employee performance on an individual basis. The total output is calculated as the number of units produced by a worker in one hour times their hourly wage rate while the input represents all costs related to that product including wages paid and raw materials used for example. This means measuring your employees’ team or departmental performance based solely on this factor will be inaccurate since it does not take into account any external factors which may affect workforce efficiency such as inflation rates for instance.

You’ve just learned that your company generates $80,000 of goods or services (output) utilizing 1,500 labor hours (input). To calculate the productivity per hour worked by each employee you would divide 80,000 by 1500. This equals 53 which means a single worker at this pace can produce about $53 worth of output in an hour.

You could also look at individual contributions and find out how much revenue they generate for every input to their work achievements like the number of employees instead of using time as input.

Let’s say your company generated $80,000 worth of goods or services in one week with 30 employees. You would divide 80,000 by 30 which equals 2666 (meaning each employee produced $2,666 for your company per week).

How to Increase Workplace Productivity

 

You’ve established your goals, reviewed the data, and now have some preliminary results. That’s great! But what are you going to do differently from here on out?

In this passage about how to improve, it would be good for an example of a specific change or technique that could help guide future improvement efforts.

There are plenty of ways people can use to improve their team’s productivity, but these methods aren’t the focus here. Instead, we want to take a look at some less popular ones.

1. Break down large projects into more manageable tasks

 

When the project is large and time-sensitive, it can be both intimidating and overwhelming. Breaking up some of those tasks helps make them more achievable for people in your team to take on independently, which will motivate other members who might otherwise feel too intimidated or overwhelmed by their responsibilities given the big picture.

2. Organize tasks by priority

 

As their list of tasks grows, it can become increasingly difficult for employees to concentrate. Be sure to constantly communicate the top priorities to your team and direct them as they complete various work-related items which will promote efficiency at all times. That way they will always know what is expected of them due in part to specific deadlines that are given based on urgency or value; this promotes a sense of responsibility from each individual employee and takes less time because there’s never any confusion about where one should be focused when working towards company goals.

3. Foster positive company culture

 

Employees are happier and more productive when they’re surrounded by the right people. You want to work with folks who know how you tick, so that means getting around your peers as much as possible. Next time someone asks a question at lunch or in an email chain–don’t be afraid to jump on it if you think of something worth adding!

Employees feel better about their jobs when their teammates are contented too- especially knowing one another well enough that we can collaborate without being shy about sharing our ideas is important for all employees involved.

4. Avoid overtime and overburdening employees

 

Working too hard and investing all your time into a project can work against you. When people get invested in their projects, they often have the temptation to go overboard with a commitment by doing multiple things at once or working long hours which leads them for wasting time and stress respectively. These are some of the ironic outcomes that happen when we invest ourselves fully in our tasks because it ends up making us less productive rather than more so.

Industry Factors in Workplace Productivity

When you measure productivity using the labor productivity method, your outputs will change based on the industry.

In order to measure productivity in the sales industry, it is crucial that you take a variety of outputs into account. For example, one could track how many new accounts were opened on a monthly basis as well as whether or not there was an increase in calls made and/or dollar volume sold during those months.

There are a number of ways to measure productivity in the service industry, and they all involve calculating intangible outputs. For example, you could count up how many people someone served or tasks completed throughout their shift.

For manufacturing, producing products should be done with careful consideration given to the amount of time it takes for a single product. Manufacturing one unit may take anywhere from eight hours, or if you’re lucky maybe only two because your boss has something against overtime wages and wants his employees to produce more in less time than is healthy.

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