More and more we\u2019ve been seeing increased interest in some \u201creal\u201d employee metrics.\u00a0 Instead of looking at things like employee satisfaction, I\u2019ve been talking about profit per employee and the chain of linkages between the engagement score and the profit figure.\u00a0 Business 2.0 Magazine had a write-up about measuring employee productivity.\u00a0 Here are some of their tips.<\/p>\n
The standard economic measure of productivity – dividing company revenue by number of employees – won’t help you make operational improvements. Nor can you simply count the widgets they ship per week, as factory managers do.<\/p>\n
Experts are starting to believe bad measurement is worse than no measurement. Take law firms that only count billable hours – causing their associates to stay in the office so much that “eventually they burn out,” says Thomas Klett, a consultant at Watson Wyatt.\u00a0 ((Datta, Saheli.\u00a0 February 13, 2007.\u00a0 \u201cMeasuring Minds at Work.\u201d\u00a0 Retrieved from money.cnn.com on March 18, 2007.))<\/p><\/blockquote>\n
The article seems to be advocating and employee by employee measure of productivity.\u00a0 While it\u2019s perhaps meaningful to look at individual productivity and correlate it to the expected productivity for the particular job, or to look at overall revenues per employee headcount, I\u2019d suggest that the Wyatt consultant is correct.\u00a0 Some measures of productivity are not worth performing.\u00a0 If it takes an employee by employee scan, the effort just seems too high.<\/p>\n
What I\u2019m more interested in is the drivers of productivity and measuring those.\u00a0 Things like employee engagement and it\u2019s components of satisfaction will drive productivity from the HR point of view.\u00a0 At this point, your aggregated revenue to employee metric can help you drive strategies for change throughout the organization.\u00a0 The individual measure of productivity is really only good for performance management activities.\u00a0 While I\u2019m in no way minimalizing that because we do it today, this detail of the organization is simply not useful on a strategic basis.<\/p>\n","protected":false},"excerpt":{"rendered":"
More and more we\u2019ve been seeing increased interest in some \u201creal\u201d employee metrics.\u00a0 Instead of looking at things like employee satisfaction, I\u2019ve been talking about profit per employee and the chain of linkages between the engagement score and the profit…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-707","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=707"}],"version-history":[{"count":0,"href":"https:\/\/systematichr.com\/index.php?rest_route=\/wp\/v2\/posts\/707\/revisions"}],"wp:attachment":[{"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/systematichr.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}