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15 Proven ways to track employee productivity for modern businesses

04/10/2024 minute read OneAdvanced PR

Monitoring employee productivity is about empowering your workforce and nurturing their talents for sustainable growth. As leaders or managers, understanding how to track employee productivity to transform your team’s performance and deliver optimal results is crucial, but challenging at times. Therefore, we have come up with 15 proven ways to track employee productivity that can maximise your workforce potential and drive competitive advantages.

1. Introduce SMART framework for goals and objectives

The SMART framework is an ideal approach for setting goals and objectives for teams, individuals, and organisations. Adopting this initiative can help you create a clear roadmap for your team to achieve success and measure progress effectively. SMART goals stand for:

Specific

It means you should define your goals with precision. To make it more transparent and clearer, avoid using vague statement; instead, mention what you want to achieve and why it’s important. This clarity ensures that everyone involved understands the objectives and can focus their efforts effectively.

Measurable

By setting measurable indicators, you equip your team with the tools to assess whether they are on the right path. Incorporate quantifiable criteria to track progress. This allows them to make timely adjustments if necessary to stay on course.

Achievable

Ensure the goals that you are setting for your team, or individuals are realistic and achievable. Setting overly ambitious targets can lead to frustration and demotivation, while achievable goals maintain morale and encourage progress.

Relevant

Align your goals with broader business objectives. Each goal should drive you closer to your vision and strategic priorities, ensuring that time and resources are invested in areas that truly matter for success.

Time-bound

Establish a clear timeline for achieving your goals. Deadlines instil a sense of urgency and ensure accountability. With a defined timeframe, you can prioritise tasks and maintain momentum towards your objectives.

2. Communicate expectations clearly

Once you establish clear objectives and goals, communicate the same with your team or individuals. This practice not only reduces ambiguity and enhances your team’s performance but also makes them understand what is expected from them. Here’s how you can communicate expectations to track employee productivity.

Open consistent communication

Consistency in communication ensures everyone receives the same message. Use platforms such as team meetings, chats, emails, or project management tools to open consistent communication channels. This will help you to provide regular update to your team, arrange feedback session for them, and keep them informed of any changes or development.

Clarity and precision in messaging

Craft precise and clear message to eliminate confusion among employees about their roles and responsibilities. They should be able to understand what is expected of them and how their work contributes to the broader objectives. Consider written guidelines or documentation that employees can refer to, further reinforcing your message.

3. Monitor progress consistently

Regularly monitoring and reviewing progress can give you insights into how your team is progressing toward achieving goals. You can set up regular check-ins or meetings to discuss progress, address blockers, and identify areas of improvement. This can help you with timely adjustments if needed and ensure that productivity remains on track. Here’s how you can consistently monitor work progress of your team to track employee productivity.

Establish milestones

Break down your team goals into smaller achievable milestones. This helps you to track progress more effectively while also providing a sense of accomplishment for the team as they reach each milestone.

Set up regular meetings and reviews

By arranging regular one-on-one meetings and reviews with employees, you can discuss their progress, address any concerns, and provide feedback. This enables you to keep track of their performance and understand any challenges they may face.

4. Implement the right productivity tracking tools

Before adopting any tools or software to track employee productivity, you need to understand your requirements because every organisation has different needs. For example, a company that has recently adopted a work-from-home policy may have different needs to track employee productivity compared to a company with all in-house employees. So, depending on the requirements, the productivity tracking tools also vary.

Time tracking software

Time tracking software provides detailed insights into how employees spend their time on assigned project and where they may need extra support. It allows you to set goals for tasks and projects and track the time spent by each team member on these tasks or projects. Moreover, by integrating time tracking tools in your workflows, you can ensure that the project progresses as planned, you meet deadlines and monitor your team’s productivity.

Project management tools

You can use project management tools to collaborate, track the progress of projects, and allocate resources efficiently. These tools are highly effective when it comes to track employee productivity as they provide a centralised platform for communication, task assignment, and project monitoring. Furthermore, integrating these tools into workflows can provide your organisations with insights into overall work timelines and bottlenecks.

5. Conduct regular performance reviews

Performance reviews are one of the effective tools to track employee productivity. Managers and leaders use performance reviews to assess their team’s performance, set goals, and provide feedback.

Schedule regular reviews

Establishing a consistent schedule for performance reviews, such as quarterly or bi-annual meetings with employees, can help managers or leaders monitor employees’ progress toward goals and address any issues or concerns. This ensures that employees have clarity on their performance expectations and a platform to discuss challenges, seek feedback, and ask for support if needed.

6. Use objective metrics, not subjective opinions

Performance reviews should be based on objective metrics instead of subjective opinions. This approach can eliminate bias or inconsistencies in performance evaluation and provide a fair assessment of employee productivity. To establish objective metrics:

Define Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) play a pivotal role in tracking employee productivity. This offers quantifiable data that reflects employee performance. To apply KPIs effectively, begin by identifying the specific metrics that align with your business goals and operational objectives. Consider KPIs that measure both efficiency and effectiveness, such as the number of completed tasks, quality of work, or sales results.

Adopt data-driven approach

To maintain an objective view of employee productivity, it's essential to consistently gather and analyse relevant data. Implement systems and tools that facilitate data collection, ensuring accuracy and reliability. This could involve automated software that tracks output and performance or regular manual data entry for more nuanced metrics. Once collected, the analysis should be objective and reflect an unbiased evaluation of employee’s performance against established KPIs.

7. Provide constructive feedback

Feedback is crucial for employee development and can significantly impact productivity. It allows employees to understand their strengths and weaknesses, identify areas for improvement, and set goals for personal growth. Here are some ways you can provide constructive feedback:

Be specific

When providing feedback, dig out the details about what the employee did or didn’t do well. Talk about examples to make them understand specifically where they need improvement and how they can achieve it. This level of particularity clarifies expectations and empowers them to act positively and confidently on your feedback.

Focus on behaviour

Instead of making assumptions about an employee's character or work ethic, focus on behaviours that can be changed or improved upon. This makes the feedback more actionable and less personal, making it easier for employees to implement constructive changes and grow professionally.

Deliver real-time feedback

Real-time feedback is more effective than annual reviews as it enables employees to make immediate changes and enhance learning opportunities. Establish a process where you can share your feedback soon after the completion of a task or project. This ensure that your input is relevant and actionable.

Encourage Growth

Provide feedback that inspires employees to learn and develop, rather than merely identifying mistakes or shortcomings. Frame your insights as opportunities for growth, helping them recognise areas for improvement as a positive chance to expand their skills and capabilities.

8. Encourage employees self-assessment

Encouraging self-assessment allows employees to feel more invested in their work and take ownership of their performance, fostering a culture of accountability and continuous learning. It also provides a self-reflective opportunity for employees to assess their strengths, identify areas for improvement, and set their individual goals.

Equip employees with self-assessment tools

Offer employees tools and software that enable them to track their progress and stay aligned with the organisation’s expectations. Some examples of self-assessment tools include productivity journals, goal-setting worksheets, or self-evaluation forms. Incorporating these tools in workplace empower employees to take control of their own productivity and personal development.

9. Measure time management

Effective time management is crucial for achieving productivity goals. It ensures that tasks are completed within deadlines, reduces stress, and increases overall efficiency. Thus, tracking employees’ time management skills can provide valuable insights into their productivity levels. Here's how you can measure time management:

Track completion timelines

Keep track of the amount of time it takes your employees to complete assigned tasks or projects from start to finish. This enables you to identify any patterns or areas where they may be struggling with time management and offer solutions for improvement.

Assess project planning

Evaluate employee’s ability to plan and prioritise their work effectively. Consider factors such as meeting deadlines, managing interruptions, multitasking efficiently and communicating progress. These can provide valuable insights into how they manage their time and where they may need support.

10. Manage the work quality

Ensuring high-quality work is crucial for achieving productivity goals. Poor quality work can lead to rework, delays, and dissatisfaction among clients or stakeholders. Here are some ways you can manage the work quality of your team:

Set clear quality standards

Establish clear expectations and standards for the quality of work expected from employees. This could involve defining criteria such as accuracy, attention to detail, meeting client requirements, or adhering to company guidelines.

Provide tools for quality control

Implement tools and processes that facilitate regular checks on the quality of work. This could include software for proofreading documents or conducting regular audits to ensure compliance with established standards.

11. Implement productivity tracking system

Implement a productivity tracking system to measure and monitor progress towards achieving your objectives. This system should include KPIs that align with your business goals and help you understand employee performance. Some of the key metrics that can be included in a productivity tracking system are:

Output per hour

This is an essential metric for understanding how efficiently your employees are working within a given timeframe. It helps identify areas where employees may be struggling or excelling, which allows you to provide appropriate support.

Quality of work

Quality often trumps quantity, and it’s important to track the quality of output produced by your team. This can give an indication of the effectiveness of processes, training, and skillsets required for each task.

Deadlines met

Meeting deadlines is important for maintaining productivity and ensuring projects stay on track. By tracking this metric, you can identify areas where employees may need additional support or resources to meet project timelines.

12. Introduce reward system

One of the effective ways to track employee productivity is introducing a reward system. This provides incentives for employees to increase their productivity and improve their performance. Some ideas for rewarding employees could include:

  • Offering bonuses or salary increases based on achieving set KPIs
  • Recognising and publicly acknowledging top-performing employees
  • Providing additional resources or opportunities for career growth and development.

13. Make changes to your goals and objectives if necessary

Tracking employee productivity can often reveal areas where your goals and objectives may need to be adjusted. It's important to regularly review these targets and make changes as necessary to ensure they align with the changing needs of your organisation and its employees. This flexibility allows for a more accurate assessment of employee productivity, ensuring that it remains relevant and effective.

14. Foster a collaborative environment

Creating a collaborative environment is vital for driving productivity. When employees work together seamlessly, they can leverage each other's skills, share knowledge, and solve problems more effectively, enhancing overall team performance.

Encourage open communication

Open lines of communication foster a culture of transparency and trust, essential for successful collaboration. By encouraging dialogue and feedback, employees are more likely to share ideas, address issues proactively, and contribute to team success.

Facilitate team-building activities

Regular team-building activities can strengthen relationships and improve team cohesion, which in turn boosts productivity. Activities that encourage collaboration help teams develop a deeper understanding of each other's strengths and working styles, ultimately enhancing efficiency.

Incorporate collaborative platforms

Collaborative platforms provide a centralised space for sharing documents, managing projects, and coordinating tasks. These tools enable teams to work together effectively, with real-time updates and easy access to information, ensuring a more efficient workflow.

15. Provide Continuous Training and Development

Investing in employee training and development is essential for improving productivity. It ensures that employees possess the skills and knowledge needed to perform their roles effectively.

Identify Skill Gaps

Conduct regular assessments to identify skill gaps within your team. Understanding these gaps enables you to provide targeted training programs that will enhance employee capabilities and productivity.

Offer Professional Development Opportunities

Provide opportunities for employees to attend workshops, courses, and seminars relevant to their roles. Encouraging continuous learning not only improves productivity but also contributes to employee satisfaction and retention.

Implement Mentorship Programs

Establish mentorship programs where experienced staff can guide and support newer or less experienced employees. Mentorship fosters knowledge transfer, skill development, and boosts overall team productivity.

So, why wait?

Tracking productivity is important for any company looking to drive growth and achieve competitive advantages. By implementing the 15 proven ways mentioned above, you can effectively track employee productivity at both the individual and team levels. But here’s a catch – tracking employee productivity is not about micromanaging or creating pressure; it’s about empowering employees to reach their full potential and drive success for the organisation. In this way, you can foster a culture of productivity that promotes growth and success for modern businesses.

Read “10 tips to improve workplace productivity” and prepare yourselves to achieve the highest level of productivity and competitive advantages.

Frequently Asked Questions (FAQs)

Do employee tracking devices improve employee work productivity?

Yes, employee tracking devices can improve productivity when used effectively. They provide insights into time management and workflow efficiency, enabling managers to identify areas for improvement. However, it should not be necessary to relied upon to improve productivity. It’s important to consider other factors also, such as company’s culture, work-life balance, and employee engagement. Therefore, while these devices may have benefits, they are not a guaranteed solution for improving employee productivity on their own.

How to track productivity of an employee working from home?

Tracking the productivity of employees working from home can be done through various methods, such as using time tracking software, project management tools, and regular check-ins. Apart from this, it’s also important to establish clear goals and expectations for remote work and communicate them effectively to ensure everyone is on the same page. Ensure to have open lines of communication and trust between managers and remote team members for optimal results.

What is the best software to track employee productivity?

The best software to track employee productivity depends on the specific needs and goals of your organisation. At OneAdvanced, we offer a comprehensive suite of people management software portfolio including, time tracking software, project management tools, and performance evaluation software that can help you to track employee productivity and keep you updated with your employees’ performance. However, before implementing any software, it’s important to analyse your organisation’s requirements.

Do employee tracking devices improve employee work productivity?

Employee tracking devices can enhance productivity by offering insights into work habits and efficiencies. However, their effectiveness depends on how they're exploited within a supportive framework that includes clear communication, respect for privacy, and alignment with organisational culture and goals.