4 Tips to Harvest your "Effective & Productive" Employees

“People will rarely work at their maximum potential under criticism, but honest appreciation brings out their best “ — Dale Carnegie

Giving the huge cost companies incur in replacing an employee, it should be a no-brainer for any organisation identifying right effective and efficient employee will be at most their organisational priority. This is particularly important for startups and fast-growing organisations, where a big share of the managerial manpower is at its first experience in managing teams. It’s not always easy to do this and might vary with various circumstances and conditions surrounding both employee and organisation. This will also involve both sides of external factors factors such as

From Organizations

• Organization Strategy
• Business Path & Growth
• Leadership Team
• Culture

From Individuals

• Individual Opinion On Company
• Work Ethics
• Long Terms & Short Term Goals
• Financial & Social Situations
• Other External Influences

Most commonly organizations feel they know when or how to praise people on your team. You only want to reward great performance, and it’s easy for routines to make you blind to steady, reliable work. Which also has its impact on the employee loyalty towards organizations.

Survival of the organizations depends on their performance, particularly the financial performance, while the performance is depending upon the productivity which is measured in terms of output. Output of a employee has various dimensions.

In this Article i will be majorly focusing on 2 most commonly used Dimensions of harvesting your CORE employees and recognizing them to retain and make them part of your organizational journey that can help leaders to carry the company culture, loyalty and people which are great assets.

Value Added  Vs Productivity

Value-Added Productivity per Employee is an indicator that measures the ‘value-added’ per employee and is an outstanding measure of the extent to which you are utilizing your employee’s strengths.

Added-value is basically the average proportion productivity of your sales or service delivered  – the dissimilarity among the worth you sell or generate revenue at and the price to you usually before bearing in mind the overheads. Added value corresponds to the net output as shaped by a venture or the actual result ascribed to the factors within your company. It also designates the degree of accomplishment of collaboration and labors by the various parties involved in the production process. The higher the figure the better it is. In general, rising added-value per employee is positively suggestive of the rising productivity

Employee productivity (sometimes referred to as workforce productivity) is an assessment of the efficiency of a worker or group of workers.

Productivity may be evaluated in terms of the output of an employee in a specific period of time. Typically, the productivity of a given worker will be assessed relative to an average for employees doing similar work. Because much of the success of any organization relies upon the productivity of its workforce, employee productivity is an important consideration for businesses.

Employees are expected to produce value for their employers business value that exceeds the cost of keeping them on the payroll. Employees, in other words, are expected to be productive.

Managers often have a pressing need to understand how productivity of their own employees is defined, measured, enhanced, and degraded.

Integrity & Loyalty   Vs Smart & Analytical

A commonly established mindset is that workers who have been able to accomplish credits to their success by spending almost half of their lives, working for the same organisation, are these employees genuinely satisfied and highly loyal?

Integrity means following moral convictions and doing right things in all circumstances. It plays a vital role in the tenure of one’s employment and it has a lot to do in return for it.

A common perspective often equates employee’s loyalty & integrity with the tenure of employment. Those workers who continue to serve for longer tenures with an organisation are frequently considered to be highly dedicated and loyal towards a company. Unlike job hoppers, employees who work for long are perceived to be highly satisfied with their job roles and trustworthy, since they are not on lookout always for greener pastures elsewhere.

Truly loyal employees are not just those who work for decades with a company. They are committed to help the company succeed, willing to grow and set aside their own priorities for the sake of company’s long-term advancement.

The trust and high optimism showcased towards meeting company goals and vision drives them to initiate actions and become highly productive in executing their job roles, to be able to accomplish tasks beyond their job description.

Today, Google receives around 2 million job applications a year. It only hires about 4,000 people, giving it a lower acceptance rate than Yale or Harvard.

In today’s highly competitive landscape, companies need to stay one step ahead to win the trust and confidence of their customers. A simple way to deal with this problem is to hire SMART, Analytical  and creative thinkers who can think outside the box and suggest better solutions. Over the years, people like Steve Jobs and Bill Gates have revolutionized technology with their innovative solutions. By hiring the people with that mindset, companies across industries can find solutions to difficult problems.

A passionate employee searches for better solutions, takes measured risks, performs at a higher level year after year, works the hours needed to get the job done and is well connected to others internally and externally. They possess personal fortitude and a thirst for continual learning and improvement.

Measuring Efficiency

You could calculate a very high productivity number per employee, but that number alone doesn’t give you any insight into the quality of work (in theory, an employee could seem very productive, but actually be producing horrible outputs).

To compare the productivity numbers against a benchmark, you can compare the current productivity with the standard amount of effort needed for the same output. Divide the standard labor hours by the actual amount of time worked and multiply by 100. The closer the final number is to 100, the more effective your employees are.

You could calculate a very high productivity number per employee, but that number alone doesn’t give you any insight into the quality of work (in theory, an employee could seem very productive, but actually be producing horrible outputs).

To compare the productivity numbers against a benchmark, you can compare the current productivity with the standard amount of effort needed for the same output. Divide the standard labor hours by the actual amount of time worked and multiply by 100. The closer the final number is to 100, the more effective your employees are.

For example, let’s say the standard labor hours for a certain project is 80 and the actual amount of time worked is 92. You would divide 80 by 92, and multiply by 100, calculating your efficiency to be 87%.

As you compare productivity and efficiency, there are a few different ratios to consider:

• Idle time ratio: (Production downtime / total labor hours) x 100
• Activity ratio: (Expected hours needed to produce actual output / actual hours need to complete) x 100
• Labor capacity: (Actual hours worked / total budgeted labor hours) x 100

Longitudinal Reporting

The biggest benefit to measuring employee efficiency is in longitudinal reporting, where you calculate efficiency over a period of time. This allows you to identify trends that may impact how you organize staff, or hire and remove employees. Measuring long-term efficiency and productivity can also help you decide who should receive a promotion or bonus. And lastly, this type of reporting can play a role in predictive modeling: if you know an employee’s efficiency rate, then you can predict how many items/tasks will be produced or completed in a certain amount of time.