As a small business owner, you always must check your employee’s productivity to calculate that earning or profit of your company. If you are confused and want to know how to check employee productivity, then you are on right place. In this article, we have mentioned about the how you can check your employee’s productivity. So don’t worry about it.
Because we have mentioned a few points that will help you know and understand how to check employee’s productivity. To understand your employee’s productivity, you have to check an employee’s productivity between in every three months. After checking the productivity of your employee in every three months, you can compare all the results of every three months to calculate the productivity of your employee. As a result, you can see the productivity report of your employee, and it will also tell you whether productivity is improving or not.
Calculating the productivity is very simple and easy so that anyone can estimate the productivity of the company. The Productivity can be calculated by dividing the outputs produced by an organization by the inputs used in its production process. The Output is normally in a number of goods or the services provided, while Inputs generally measured are capital, natural resources, labor hours, etc.
The productivity also can be calculated by measuring a company’s net sales to employee labor hours or a number of units produced relative to employee labor hours.
Although, there have mentioned a basic formula to check productivity of your company employees.
Employee Productivity Calculation
Productivity = Output (a number of goods, services )/ Input (capital, natural resources, labor hours)
This is the simple and basic formula for calculating productivity of your company’s employee that you can use to calculate the productivity of your employee easily.
For Example, If you are a manager of any organization and want to calculate the productivity of all the employee that is working for your company. So you have data such as the input was 2500 hours of labor, while the company had the output of 50,000 units last month.
Productivity = 50,000(Units)/2,500(labor hours)
Productivity =20 Units/hours
So after the dividing the input and output data, you can see the productivity of the employee is a 20 units/hours in last month.
By using this formula, you can calculate productivity of all employees. But you can also calculate the single employee productivity by using the same method. So take a look below-mentioned example.
To calculate the single employee productivity check out this example.
For example: Here we have one Employee = “Mark.”
Mark made goods of worth INR 40,000 in the first month and worked 160 hours a month. So, here we have to calculate the productivity of Mark.
To calculate the mark productivity apply the formula.
Mark Productivity = Output (Made Goods)/Input (working hours)
Mark Productivity = 40,000/160
= INR 250/Hours
So we can say that the Mark can produce things of worth INR 250 per hours.
Are you business owner? How do you calculate your employee productivity? Share your thoughts with us in the comments below.