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Human Resources Management » HR Audit
| Subject : | Productivity |
| Question : | Dear Dr Salah , I need you to help me to calculate productivity in a new method to ensure fairness between employees. |
| Answer : |
To measure the performance of individual employees, you can hit the ground for the use of Key Performance Indicators (KPIs). Each job function has its own set of KPIs. For Sales Function, as an example, you can use the Gross Margin, Profit Margin. For HR Function, you may use: Cost Per Hire, Human Capital ROI...etc. The key point is to identify the function and to assign the KPIs together with the line managers, DON\'T IMPOSE the KPIs on them...they should share you. Where to find the KPIs? On the Internet....search the Internet for KPIs, you may find a lot of resources to help you with formulae and calculations, even software are avaialble for KPIs calculation. Setting KPIs is just the start, you need to link the KPIs to compensation, thus give KPIs targets and assign a variable part of the pay to achievements on the set KPIs targets. I wish this was useful. Dr. KASHEF |
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Follow-ups |
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| Question : |
Dear DR Salah,
Thank you for your valuable answer :) But we already have KPI's in our company that states that every employee must be above the average of team (but they didn’t state how to calculate the productivity). For example we calculate productivity as follows:- We work in complaint department to solve customers' problems, so we solve customers' requests, so every employee take points on every solved request according to its difficulty and average handling time of this request and then we take requests points and divide it on working days of employee. (Ex:- requests points / no# of working days = average of employee points) Problems that we are currently facing are mainly stated in employee no# of working days as it differs from each employee to another that could affect team average. I need your valuable advice if there is a book or a website that could give me different ways to calculate productivity. Please if you need more clarification Appreciate letting me call you if available. Thanks in advance. |
| Answer : |
Sure; you can use the famous KPIs Library: http://kpilibrary.com/ It contains more than 4000 KPIs. Dr. KASHEF |
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