A Formula to Measuring Employee Productivity for Service Industries

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Every industry has its own approach to measuring employee productivity. However, some find it harder to assess the efficiency of teams’ performance due to certain circumstances.

Why is Measuring Employee Productivity More Difficult for Service Companies?

It is much easier for manufacturing industries to estimate the productivity of employees’ work: the more items they produce, the more productive they are.

However, things are more complicated for service industries, due to the intangible nature of the product involved.

The performance of certain departments of the company does not have a straight economical effect. For, example the work of the marketing and web-development department.

The duty of digital marketers is to attract a stranger and turn him into a visitor of their website, where they can tell one about the brand/product, and then turn them into leads. Sales managers in order have to turn those leads into steady customers.

Along that way, web-developers provide technical support and development of the service/product/website.

Because the work of these specific departments does not have a monetary result, managers often face the problem of measuring their productivity.

The Formula For Measuring Employee Productivity

Even if the performance of employees does not have a monetary result, they still have time and plans to fulfill. So, measuring employee productivity for service industries includes the efficiency of time use and achievement of results.

Among the variety of business productivity tools, there is a category of software that allows to track easily employees’ time and productivity: time tracking software.

As for example a time tracking tool like Yaware.TimeTracker, that allows to:

  • track how much time employees spend executing a certain task;
  • how they spend their working time online;
  • which applications they use, and how they influence the productivity;
  • see the total worked time of each employee and determine personal workload.

In addition, Yaware.TimeTracker uses categorization of resources to assess the productivity of employees’ work at the computer.

All applications and websites are divided into:

    • productive

(used daily or often, to execute tasks);

    • unproductive

(distracting);

  • neutral (used rarely).

Yaware.TimeTracker also captures the duration of use of each app/website and then generates the collected information into a visual report, like this one:

Additionally to tracking employees’ time and productivity, check how well the departments fulfill the plans of the company.

Using both approaches, you will be able to assess employee productivity from different aspects.

Let employees take part too

Ultimately, the key to improving productivity lies with the employees themselves. A time tracking software is a powerful tool that allows employees to improve their performance and impact the success of the company.

Time tracking reports make it easier for team members to understand where their time goes, which websites/applications interfere their productivity and how much time they spend on each activity.

Conclusion

So, the formula for measuring employee productivity for service companies is simple: use automated time tracking software and keep under control the fulfilment of company plans.

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