Tracking Employee Productivity – Friday Distraction

by Sharlyn Lauby on February 8, 2013

(Editor’s Note: Today’s post is brought to you by our friends at Kronos, the global leader in cloud-based workforce management solutions. More than half of the Fortune 1000 uses Kronos to control labor costs. Enjoy the post!)

Managers are given high praise for hiring talented workers. They are equally admired for building great teams and retaining key staff. But all of the accolades are predicated on one thing – employees achieving maximum productivity.

If the company has incredible talent on paper but the business isn’t maximizing employee productivity, well…that’s a problem. Let’s not forget the reason the company is in business – to make profits.

I once worked for a company that tracked labor costs and productivity to the nth degree. Tremendous detail. They also produced a report by location of everyone’s productivity numbers. Every location could compare themselves and see which sites were the most productive and least productive. And to make things even more noticeable, the company set a benchmark productivity standard. If your location was below the standard…well, let’s say you had a lot of explaining to do. And it typically involved creating a SMART matrix with action steps to fix the situation.

productivity, Kronos, tracking, employee, labor, costs, labor costs, smart matrix, time well spent

I thought the symbolism of labor tracking and “putting out fires” was spot on in this cartoon from our friends at Kronos. It’s easy to “think”, “guessimate” and “approximate” labor costs. Does your company really know exactly what their labor costs are? And does the cost change depending upon the product or service your organization provides?

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K.H. May 3, 2013 at 12:24 pm

I think it really depends. Down to the very last second and penny? No. For companies that need their people to rush off at a moments notice? Probably not. Certain companies like fleet, couriers, or even school buses could benefit from being tracked, not to get anyone in trouble, but to see if they are being efficient. GPS services can save time and money between labor and fuel costs. Also, it allows me to think about whom I might give a promotion too. Food for thought.

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