Thus, to calculate the productivity you need to multiply 21 hours to 5 days a week which is 105 hours total. Let us assume that the value of 523 units is $50,000 and the unit is working averagely 21 hours a day. Moreover, it can also be measured in terms of hours. So applying the formula output/input we get 523/15 = 34.86 units per employee per week. ExampleĬompany A has is a manufacturing unit and produces 523 units in a week utilizing 15 employees. Thus, as shown in the example below, turning the company into a sales company gives the revenue per salesperson, and the same in manufacturing shows the units per employee or worth of unit produced per employee. It all depends upon the purpose and industry for which you measure productivity. Whereas, in the manufacturing industry, you will either measure the production per employee or worth of goods one employee can produce during that specific time.īesides, productivity in the service industry changes depending on the industry. Moreover, in the service industry, as intangible outputs are involved you will be able to measure the number of customers served or the number of tasks completed. The input includes capital costs, energy costs, material costs, and manpower.įurthermore, while we measure sales productivity, we will have to add a variety of additional outputs, like the number of new customers, the number of positive leads generated, and the volume of sales in dollars. You can obtain employee productivity by dividing the average output per period by the total inputs consumed during that period. There are 3 types of employee productivity: Unit Productivity, Dollar Productivity, and Hourly Productivity. The basic formula for calculating employee productivity is the output divided the input during a particular time. Formula to Calculate Employee Productivity
Whereas, in the Service industry, employee productivity is measured in terms of clients/projects handled per employee, the number of projects completed per employee or per hour, etc.
Moreover, for the Sales/Marketing Industry, it is measured in terms of sale of units per employee per day, sales in dollar per employee per day. Thus, in the manufacturing Industry, employee productivity can be measured in terms of units produced per period, units produced per employee, the worth of goods in dollars per period, the worth of goods in dollars. Importance of Measuring Employee ProductivityĮmployee Productivity is the production/revenue received during a specific period against the number of employees or resources consumed in that specific period. Productivity is measured differently depending on the industry.Contents of Employee Productivity Calculator.Employee Productivity Calculator Template (Excel, Google Sheets, and OpenOffice).Formula to Calculate Employee Productivity.
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