Key figure 1: Output per hour/labor unit
One of the most direct metrics for measuring employee productivity is output per hour or unit of work.
This key figure measures how many products, services or tasks an employee completes in a certain period of time (e.g. one hour, one day or one week).
This figure is particularly informative in production or service industries.
Formula:
Productivity = output (number of tasks completed or units produced) ÷ input (hours worked)
Example:
A production worker who produces 50 units in an 8-hour shift has a productivity of 6.25 units per hour.
Key figure 2: Degree of fulfillment of targets
This key figure measures the extent to which an employee or team achieves the targets set.
Targets can vary depending on the department – be it the fulfillment of sales targets, the number of customer inquiries processed or projects completed.
Tip:
Define clear, measurable targets (according to the SMART principle) for each employee or team. The degree of fulfillment can then be shown as a percentage, e.g. “80% of the quarterly target achieved”.
Key figure 3: Error rate/quality of work
Productivity does not only mean speed, but also quality.
The error rate is an important indicator for assessing how many errors are made when completing tasks.
A low error rate indicates high-quality work and makes a decisive contribution to productivity.
Formula:
Error rate = (number of errors ÷ total number of tasks completed) × 100
Example:
If an employee makes 5 errors when processing 100 inquiries, the error rate is 5%.
Key figure 4: Average processing time
This key figure measures how long an employee takes on average to complete a task or process.
A shorter processing time can indicate efficient work, while long processing times indicate obstacles or inefficient processes.
Tip:
Use time tracking tools to track the processing time of individual tasks. This allows you to identify and optimize bottlenecks.
Key figure 5: Absence rate
High productivity requires employees to attend work regularly and punctually.
The absence rate measures the number of days an employee is absent due to illness, vacation or unexcused absences.
A high absence rate can have a negative impact on the productivity of the team or department.
Formula:
Absence rate = (number of days absent ÷ total working days) × 100
Key figure 6: Employee engagement and satisfaction
Satisfied and committed employees are generally more productive.
This indicator is difficult to measure directly, but can be captured through regular employee surveys or engagement tools.
A high level of engagement shows that employees are motivated and identify with the company’s goals – which has a positive impact on productivity.
Tip:
Conduct regular surveys to measure employee satisfaction and engagement. Tools such as easyfeedback are ideal for this.
Key figure 7: Costs per output unit
This key figure measures how much the company spends on the production of a single unit of work (product or service).
It combines the output and the associated costs such as working time, material costs and other operating costs.
A reduction in costs per unit is a sign of increased productivity.
Formula:
Cost per unit = total cost ÷ number of units produced
Example:
If a company spends 5000 euros to produce 100 products, the cost per unit is 50 euros.
Conclusion
Measuring employee productivity is essential to ensure operational efficiency and long-term success.
With the right metrics – such as output per hour, target completion rate, error rate and absenteeism rate – companies gain valuable insights into the performance of their teams.
This data not only makes it possible to monitor productivity, but also to take targeted measures for improvement.
Ultimately, however, companies should not only focus on quantitative key figures, but also take into account the well-being and commitment of their employees.
After all, a healthy balance between efficiency and employee satisfaction is the key to sustainable productivity and long-term success.
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