How Should Employee Productivity Be Measured: Worked Days or Total Working Days?

Hi,

Can anyone let me know how productivity should be measured for an employee? Is it based on the number of days the employee worked in the month or the number of working days in the month?

For example:
Number of working days in the month: 22
Per day target: 60 transactions
Employee on leave: 2 days
Total achievement: 1260 transactions

Based on the number of worked days (Production %):
(1260/(60*20))*100 = 105%

Based on the number of working days in the month (production %):
(1260/(60*22))*100 = 95.45%

Which one is correct?
Please suggest.

Thanks,
Amit

It should always be on the number of days worked and not on the number of days in a month while calculating individual productivity. Because you can't penalize an employee just because he was on leave.

While calculating group productivity, it has to be on three days of a month. This is a very sensitive subject and depends on every organization's perception of how to look at productivity.

Hi Anand/Mohammed Sardhar,

Thanks for your prompt response. Although you are correct in one sense, if an employee's absenteeism is affecting or delaying the work, should the employee be penalized or not?

Thanks,
Amit

That's why I said it is a very sensitive subject, and it has a direct effect on the employee's performance. You are only calculating how much an employee performs during a given day versus the target. Now you cannot calculate when he is not available for that day. You say the process will get affected - No doubt it would get affected, but again, it would get compensated with the other existing associates who can make up for the associate's absenteeism. If the associate is on continuous leave and very regular in taking leaves, then it is a performance issue.

If the associate is working in a group, then you have to calculate the average for a month, not based on days worked by an employee. When you do graphical presentation, if you see an upward trend in the average, your process is good. But if you see a downward trend, then your process is in trouble.

The employee is penalized for his absence as Loss of Pay (LOP) and leave deduction. However, for performance, you cannot hold that against him. 😄😄😄

I need help from my senior colleagues on how we can calculate employee productivity in the service industry, mainly in hospitals. What can be the parameters to gauge it?

Regards,
RK Pandey