Today is Labor day. As we celebrate the day, one issue is on the minds of people, employers, and employees. It is the least wage increase. This is the most quoted thought I like listening to being issued by trade unions. By the way, that’s their work. On the other hand, employers will respond by brandishing the term productivity! The counter argument will be, “how do you measure productivity?

Many will argue that productivity can’t be measured especially in the public sector. But is this notion true? Is it the lack of the will? Or the incompetence of those vested with the responsibility to measure?or is it the refusal to compensate for improvement in productivity?

Strategically speaking productivity can be measured in different ways depending on the context:

• individual
• team, or
• organizational.

If productivity isn’t measured how do companies declare profits and dividends? This means that organizational productivity is measurable. If so it then follows that individual or team productivity is measurable.

Before I discuss how to measure productivity let me look at the outputs of productivity

Outputs of Productivity
Measurable components do have end results, outcome or outputs.

The outputs of productivity are the results or deliverables produced effectively. They arise from the use of time, effort, and resources. These outputs vary depending on the level; individual, organizational, or sector-specific.
They are grouped into:

Tangible Outputs
The measurable/visible results:

• Products or services delivered- include manufactured, documents written, classes taught, etc.
• Tasks completed- include assignments finished, emails responded to, or projects executed.
• Revenue or profits- For businesses/organizations, higher productivity often leads to more income or cost savings.

Intangible Outputs
They are less visible:

• Quality improvements- involves better accuracy, fewer errors, improved standards.
• Time savings- looks at when more is done in less time, freeing up resources.
• Customer satisfaction- looks how clients are happier due to better service.
• Innovation- shown by incorporation of new ideas, improved techniques, or creative solutions generated from productive time.

Personal Development Outcomes
These are outputs on the individual level:

• Skill mastery- which is gained through consistent practice and learning.
• Goal achievement- the progress towards academic, personal, or career goals.
• Work-Life balance- looks at more time allowed for personal life due to efficiency.

Measurement of productivity
The measure of productivity is determined by the type.

Individual Productivity
This measured using these indicators

• Output per time unit
  It Measures how much work an individual completes in a given period. E.g. tasks completed per hour or words written per day.
• Time management metrics
  Focuses on how effectively a person uses their time. For example:
• Tasks completed vs. tasks planned
• Time spent on high-priority tasks vs. low-priority tasks
• Goal achievement rate
  Considers percentage of goals met within a set timeframe.
• Team productivity
• Indicators for team productivity are:

• Work Done per Team Member
  This measures the output of each team member. It also measures the collective output of a team regarding the number of hours worked.
• Task completion rates
  Looks at the percentage of tasks or projects completed on time.
• Collaboration efficiency
  It uses metrics like response time to queries. It also considers the number of meetings or collaborations needed to accomplish a task.

Organizational/Business Productivity
The indicators are

• Output per unit of Input
  This often referred to as labor productivity. It measures how much output (goods or services) is produced per unit of input (like labor hours or capital).
  The commonly used metrics include:
• Revenue per employee
• Units produced per labor hour
• Profit per unit of input
• Efficiency ratio
  This Compares the costs incurred in producing a product/service to the revenue generated. With this it will reflect how efficiently resources are used.
• Throughput
  It measures the speed at which goods or services are produced and delivered to customers.

Conclusion
Looking through this perspective it is imperative that productivity can be measured at any level. What’s needed is the competence, will and zeal to do the job!

What are your thoughts?