How to Measure Employee Productivity

January 27, 2020

Aussie Time Sheets - How to Measure Employee Productivity

Any business owner will know the importance of measuring; hard data is crucial to know whether something is working, and if not, how it can be fixed. This is true whether it’s a marketing campaign, product sales or employee performance. When it comes to employee productivity, the key to making improvements is having insight into employee’s performance that can enable you to make empowered decisions.

Firstly, how do you measure employee productivity?

  1. Set standards: Start by calculating what your daily output is as a business, then divide this number by the number of employees who are involved in producing this output. This gives you your key targets that can be used to determine if employees are meeting these standards, and how they compare to other colleagues. It also gives you a benchmark standard that you can build from and reward employees who exceed expectations.
  2. Watch employee attendance closely: If an employee is consistently showing up late, clocking off early or missing shifts entirely, it’s usually an obvious sign of under-performance. By implementing time and attendance software you can easily and accurately keep track of employee attendance and address any issues before they become a problem.
  3. Ask for feedback: In many cases there may be a valid reason an employee is under-performing. Perhaps they’re struggling with systems or lack thereof that are slowing them down, the workload may be too much for their rostered hours or there may be issues with another employee causing friction. Speak regularly with your employees about what they are struggling with and listen to their feedback or ideas openly.

So now how do you improve employee productivity?

  1. Ask for daily updates: Have employees give you an end-of-day or end-of-week update on projects, it keeps them accountable and on top of their tasks.
  2. Found out what motivates your employees: Everyone is different and needs different environments and factors to succeed. Watch closely and speak to your employees, it will help you determine what kind of organisational structure, management style and work environment your employees perform best under.
  3. Share your vision: When employers openly share their goals, challenges, successes and vision, it creates a sense of unity and the employee will feel like they are part of that vision.
  4. Implement time and attendance software: Workforce management software is one of the easiest ways you can monitor employee attendance and increase workforce productivity. At Aussie Time Sheets we have a number of different time and attendance systems for small businesses, designed to replace your manual timesheets, streamline your payroll and provide accurate data on your employees’ time and attendance.


Contact our friendly team today to learn more about our Aussie Time Sheets time and attendance solutions and how they can help you improve your employee’s productivity.

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