Best Ways to Measure Employee Productivity

Productivity is the lifeblood of any business. It is a measure of the efficiency of an organisation in converting inputs into useful outputs. However, measuring employee productivity can be a complex task, as it involves a multitude of factors. This article aims to shed light on some of the best scientific ways to measure employee productivity, backed by research statistics, and a sprinkle of wisdom from renowned business leaders.

Top 6 Ways to Measure Employee Productivity 

According to a study by Gallup, companies with highly engaged teams show 21% greater profitability. This underlines the importance of monitoring employee productivity and engagement.

1. Set Clear and Measurable Goals

As Peter Drucker, a celebrated business consultant, educator, and author, famously said, “What gets measured, gets managed.” Setting clear, measurable goals provides a benchmark against which employee productivity can be measured.

An employee experience platform is a tool often used by managers to set specific, measurable, achievable, relevant, and time-bound (SMART) goals for their employees. This way, it becomes easier to track progress in real time on personalised dashboards and identify areas of improvement.

2. Use Productivity Metrics

Productivity metrics are quantifiable data that provide insights into an employee’s performance. These could include output per hour, sales per employee, or the number of customer complaints resolved. According to a report by the Society for Human Resource Management (SHRM), 89% of organisations find productivity metrics useful in evaluating employee performance.

An employee experience platform, such as Staffino, provides managers with the ability to establish individual KPIs for each team member. These performance indicators are then meticulously tracked via an interactive dashboard within the online platform. Upon reaching a specific KPI milestone, employees are rewarded with a virtual badge, a feature designed to enhance employee motivation management.

3. Monitor Work Quality

While quantity is important, quality should not be compromised. A study by Harvard Business Review revealed that high-quality work leads to a 40% decrease in turnover rates. Managers should regularly assess the quality of work to gain a balanced perspective on employee productivity.

The calibre of work produced by frontline employees is significantly reflected in the customer feedback they receive. By utilising a customer closed loop feedback system, you can directly address each piece of feedback – be it positive or negative – with the corresponding employee within the system itself. Additionally, you can provide the customer with a suitable resolution. This dual-purpose approach not only provides a comprehensive understanding of each employee’s performance quality but also proactively addresses customer concerns before they consider turning to your competitors. 

4. Employee Self-Assessment

Self-assessment encourages employees to reflect on their performance, identify strengths and weaknesses, and set personal goals. Research by the Journal of Personnel Psychology shows that self-assessment can lead to a 33% improvement in performance.

Employees can conduct self-assessment through various methods such as maintaining a performance journal, where they can record their daily achievements, challenges faced, and lessons learned. This continual process of self-evaluation and reflection can help employees to constantly improve and evolve in their roles. 

5. Peer Reviews

Peer reviews provide a different perspective on an employee’s performance, fostering a culture of openness and transparency. A study by the Journal of Occupational and Organizational Psychology found that peer reviews can increase productivity by 14%.

Employees can engage in peer reviews through various methods such as regular employee satisfaction feedback surveys, face-to-face meetings, or online platforms designed for this purpose. These reviews not only enable employees to understand their strengths and areas of improvement from their colleagues’ perspectives but also promote a sense of responsibility and accountability. Moreover, peer reviews can lead to improved teamwork and collaboration, as employees gain insights into their coworkers’ expectations and work styles. 

6. Use of Technology

Advancements in technology have made it easier to measure employee productivity. For instance, there are employee experience platforms that use AI and machine learning to provide real-time insights into employee performance. This enables managers to make data-driven decisions and improve productivity.

Moreover, this tool also allows for the identification of areas where employees may need additional training or support, thus facilitating targeted skill development. It also fosters transparency and open communication between managers and employees, allowing for the recognition of high-performing individuals and teams.


In conclusion, measuring employee productivity is not a one-size-fits-all approach.  It requires a combination of clear goal setting, use of productivity metrics, quality monitoring, self-assessment, peer reviews, and leveraging technology. If you’re in need of assistance, experts in employee and customer experience consulting are on hand to help you adopt these scientifically backed methods of measuring employee productivity. This will enable you to cultivate an environment of ongoing improvement, growth, and success. 

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