You want to gauge team productivity, so you devise a brilliant solution: count how many times they blink per hour.
Doesn’t work, right?
What about how often they click their mouse?
These metrics tell you nothing about actual productivity and what kinds of results they’re getting.
If your productivity metrics aren’t serving you real, insightful information, you can’t make real, actionable changes to improve efficiency.
In business, we are constantly seeking new ways to optimize and measure business productivity, employee productivity, and customer satisfaction. We’re always looking to identify inefficiencies to improve our results and how long it takes to see them.
To do this, we rely on data and metrics. But with so many different options out there, it can be hard to know which metrics actually matter and which ones are just a waste of time, like the examples we just presented.
In this article, we'll guide you through some of the most important productivity metrics and help you determine which ones are worth paying attention to in your business.
What are productivity metrics?
Productivity metrics are a way of measuring the efficiency of an individual employee, team, or organization. By tracking employee productivity metrics, businesses can identify areas where they need to improve and make changes to optimize their workflow.
There are a variety of different productivity metrics that businesses can track, but some of the most common ones include:
- Time tracking
- Efficiency metrics
- Throughput metrics
- Quality metrics
Time tracking is one of the most common productivity metrics. This can be done in several ways but typically involves tracking the amount of time spent on a task, project, or activity. This data can then be used to calculate things such as the average time taken to complete a task or the amount of time spent on productive activities.
Efficiency metrics are another common type of productivity metric. This involves measuring things such as the number of tasks completed per day or the number of calls made per hour. This data can be used to identify inefficiencies in the workflow and make changes to improve productivity.
Throughput metrics are similar to efficiency metrics but focus on the output of a task or activity rather than the amount of time spent on it. This can be things like the number of products produced per hour or the number of sales made per day.
Quality metrics are another important way of measuring productivity. This involves measuring the quality of the output of a task or activity. This can be things like the number of errors made per hour or the percentage of defective products.
Why should you measure productivity?
There are several reasons why businesses should track employee productivity metrics. Here are a few:
- To identify inefficiencies. By tracking productivity metrics, businesses can identify areas where they are wasting time or resources. This data can then be used to make changes to improve workday productivity.
- To improve employee satisfaction. Tracking productivity metrics can help businesses identify areas where team members are struggling. How's their work-life balance? What about time management? This data can be used to make changes that improve employee satisfaction and retention.
- To set goals. Productivity metrics can be used to set realistic goals for team members. This data can help businesses allocate resources and plan for growth.
- To benchmark progress. By tracking productivity metrics over time, businesses can benchmark their progress and see if they are making improvements.
Productivity metrics are a valuable tool for businesses of all sizes. By tracking these metrics, businesses can identify inefficiencies, set goals, and benchmark their progress.
For example, if your team does remote work, metrics can help you understand conversion rates, productivity time, and sales productivity — even though you’re not physically present. This can help you reach your business goals by optimizing your workflow.
What employee productivity metrics actually matter?
Some businesses spend a lot of time tracking metrics that don't matter. For example, tracking the number of emails sent daily doesn't necessarily tell you anything about productivity. The same goes for tracking how many times someone checks social media.
So, what productivity metrics actually matter? It depends on your business, but let’s review a few that we think are worth paying attention to.
1. Cost-benefit ratio
The cost-benefit ratio is a metric that measures the cost of a task or project against the benefits it will provide. This is a valuable metric for businesses to track because it can help them identify areas where they are spending too much money or time for the results they are getting.
For example, if you are spending $100 to produce a product that will only sell for $50, then you have a problem. On the other hand, if you spend $100 to produce a product that will sell for $200, then you've got the right idea.
If you want to improve your business' cost-benefit ratio, OSlash can help. We're a comprehensive link management solution that helps your employees save time by turning long URLs into quick, easy-to-use shortcuts. This helps your employees save time and work more efficiently. Learn more about why you should choose OSlash.
2. Sales growth
When it comes to your sales productivity, what's the bottom line? Sales growth is a metric that measures the increase in sales from one period to the next. This is a valuable metric for businesses to track because it can help them benchmark their progress and set realistic goals. Total revenue might be growing, but if costs are increasing at a faster rate, then that's a problem.
3. Revenue per employee
Revenue per employee is a metric that measures the amount of revenue generated by each employee. This is a valuable metric for businesses to track because it can help them identify areas where they are wasting time or resources.
For example, if you have a number of employees who generate the same amount of revenue, but an individual employee among them costs twice as much to employ, you may have a problem that impacts your business goals. The revenue per employee performance metric is especially useful if you have a sales team, but you need to gauge the output of individual salespeople.
4. Effectiveness ratio
The effectiveness ratio is a metric that measures the number of tasks that are completed divided by the number of tasks that are started. This is a valuable productivity measurement for businesses to track because it can help them identify areas where they are wasting time or resources.
For example, if you start 10 projects but only finish five, your effectiveness ratio is 50%. But if you start 10 projects and finish eight, your effectiveness ratio is 80%.
Don’t get caught up in vanity metrics or output
Some businesses get caught up in tracking vanity metrics or output. Vanity metrics are metrics that make you feel good but don't actually tell you anything about productivity. Output is what you produce, not necessarily how productive you are.
For example, tracking the number of emails sent daily is a vanity metric. It might make you feel good that you've sent 100 emails, but it doesn't necessarily tell you anything about productivity. The same goes for the number of words written or the number of meetings attended.
So, what should you do instead? Focus on metrics that actually matter, like the ones we listed above. These metrics will help you benchmark your progress and set realistic business goals.
How can my team improve productivity levels?
All of this is useful information on measuring productivity — but what are the actionable steps? Your team is pulling too many overtime hours, and labor productivity is dipping. They’re burnt out. What can you do to help your team be more efficient, productive, and happier? Let's get into it.
1. Set and track attainable goals
You need to set and track real, attainable goals. Project management and productivity apps like Wrike help with this by allowing you to set and track goals at the individual, team, and company levels. This way, everyone knows what they need to do and when it's due.
You can also use tools to track key performance indicators (KPIs). This is helpful because it lets you see how your team performs against specific goals.
2. Simplify and streamline routine processes
There are always new ways to streamline your workflow and simplify routine processes. Evaluate your current processes and look for ways to make them more efficient.
One way to do this is by using automation tools. Automation can help with things like scheduling social media posts, sending reminders, and managing tasks. There are various automation tools available, so find one that works best for your team’s productivity and needs.
OSlash helps make your workflow more efficient by making knowledge sharing in a workplace easier and faster than ever. With OSlash, you transform long URLs into simple shortcuts that are intuitive, convenient, and super easy to remember. Check out more features.
3. Motivate your team
Motivation is a key component of productivity. When employees are motivated, they work harder and are more productive. There are a number of ways to motivate your team, and it varies from team to team.
Some simple ways to motivate your team include: setting and tracking goals, providing feedback, offering recognition, and offering incentives. These are just a few ideas, so get creative and find what works best for your team.
Get OSlash today – the faster, easier, better way to work
OSlash is the solution for teams who want to work smarter, not harder. With OSlash, you can simplify your workflow by turning long URLs into simple, easy-to-remember shortcuts such as o/content-calendar or o/q1-okr so you can get to the page you want to blazingly fast!
Streamline routine processes like sending emails or sharing documents to boost your team's productivity.
Get started today and see how OSlash can help you achieve your productivity goals.