How to calculate or measure Staff Productivity Index?

Question

My company is providing technical services to our client. Our assets is manpower. In order to measure staff performance, we need to calculate individual staff's productivity index.

Anyone know how to do that?

What do i need to divide by Total time input?

Thank you

Answer 1

Every position that creates a measureable end product can be tracked agaist the time that they put into it to create a metric of measurement.

Biller productivity # of orders processed per hour

Production # of parts made per hour

Call center # of calls per hour

Salesperson # of close sales and possibly amount per month or week

For positions that don't create a consistent measureable deliverable a metric of productivity becomes really hard. I'm an IT person who's time if often invested into projects that are a one time investment that reap massive long term value for the company through effienecy. It's hard to measure the value of one day's activities over another in this case.

Good luck

Answer 2

The place to start is to think about “deliverables” rather than activity . Even if you don’t currently use this expression in your business you will be able to identify them with a little analysis. The simplest approach to take is to look at individual job responsibilities/tasks and translate those into the outcomes/results that staff are expected to produce. Think also about the results/outcomes clients are invoiced for and then identify the tasks that need to be completed to get to that point. These tasks will presumably correspond with individual job descriptions and  ( however you define them) then become your unit of productivity. Where you go from there depends on the sort of services you provide which are not described in detail but for example :-  

Per job – Your staff carry out routine services on client’s equipment. Deliverable is a serviced machine. Each service is a separate billable job. Productivity =  # completed services / hours worked

Per hour  ÃƒÂ¢Ã‚€Â“ You provide a fault finding /repair service at fixed cost or hourly rate. Deliverable is a fixed piece of equipment. Productivity =  # completed repairs or £billable hours  / hours worked

A bit simplistic perhaps but I hope it illustrates the point I was trying to make.