What is Worker Productivity?

Employers, regardless of what type of business they manage, know that worker productivity is the key to an organization’s success. Workers who are not using their time and resources effectively are costing the company money. Unfortunately, measuring productivity can prove to be quite difficult — especially in industries where work is primarily knowledge based.

Traditionally, worker productivity was figured by dividing company revenue by the number of employees. However, this measurement fails to take into account the varying skill levels and job responsibilities of workers within a business. It is simply not logical to expect that a new intern at your company has the same level of worker productivity as a mid-level employee with 10 years of experience. Counting billable hours in a manner similar to what is standard at law firms is also a bad idea. As most workers can attest, productivity starts to decline when people are working long hours with no time for needed rest and relaxation. The goal of assessing productivity should be to encourage people to use their time and resources more effectively instead of simply putting in longer hours at their jobs.

Most experts now believe that assessing worker productivity requires a careful balance between objective and subjective measurements. Objective performance data is relatively easy to find. For example, the number of sales calls made, reports written, products sold, or conferences attended can provide input into how an employee is utilizing his/her time. To find subjective performance data, however, you’ll need to ask the employees within a particular organizational department to assist in creating a system to measure worker productivity. Since managers are not generally involved in the day-to-day operation of a company, workers can provide valuable insight into what tasks are required on a regular basis.

In situations where workers must perform as part of a team, measuring productivity presents additional challenges. Clashing personality types within a team may limit worker productivity. There are also situations in which one member of the team may not stand out because he/she is busy making the others look good. Therefore, it is best to assess productivity on both an individual and team basis for all employees.

Although it may seem like a good idea to include monitoring of e-mail and computer usage as a measurement of worker productivity, this strategy may inadvertently backfire. The perceived invasion of privacy may contribute to a lower morale among employees, thus decreasing efficiency.