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Employee Productivity is an amount of output which an employee can produce during a period of time. Understanding of productivity is based upon standards accepted for a specific position or job: productivity for different types of work can be measured and standardized in terms of appropriate output norms. Monitoring of employee productivity is a part of employee performance management, as far as different levels of productivity norms can be connected to different levels of performance. Calculating employee productivity implies that all amount of an output produced by an employee meets certain quality acceptance criteria, so only the products that fall within suitability variance are counted for productivity rate. The following facts are about employee productivity:
- In sectors with material production it can be calculated as number of acceptable units produced or processes by an employee during a fixed period of time;
- It can be calculated as revenue generated by an employee for the organization divided by salary (including other concerned employee costs) of this employee;
- When the managers are defining a specific norm on employee productivity, they need to base their calculations upon considering natural human limits, industrial norms, quality of materials, difficulty of specific work, and productive capabilities of instruments & equipment involved into this work;
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