•     •   6 min read

How to evaluate the performance of employees with Worksection

What is pro­duc­tiv­i­ty and how does it dif­fer from efficiency?

An employ­ee’s work is mea­sured in two cat­e­gories: pro­duc­tiv­i­ty and efficiency.


Pro­duc­tiv­i­ty shows what results the employ­ee has achieved:


  • how many leads the man­ag­er processed in a day;
  • how many com­mer­cials the video pro­duc­tion team filmed in a month

Effi­cien­cy shows the ratio between the achieved result and the costs incurred to achieve it:


  • how much mon­ey was spent on adver­tis­ing and how many leads were obtained from that advertising;
  • how many Red Dot awards the video pro­duc­tion team received for their commercials.
Teams with­in the same com­pa­ny may have equal pro­duc­tiv­i­ty but dif­fer­ent efficiency.

The video pro­duc­tion com­pa­ny Kryanyk” cre­at­ed a land­ing page with a list of ser­vices and a port­fo­lio, after which they launched tar­get­ed adver­tis­ing. The sec­ond video pro­duc­tion com­pa­ny Excel­lence” cre­at­ed an Insta­gram page, filled the feed with their works, and launched tar­get­ed adver­tis­ing only on this plat­form. Both video pro­duc­tions received the same num­ber of leads from their ads (equal pro­duc­tiv­i­ty). How­ev­er, the rev­enue of the video pro­duc­tion com­pa­ny Kryanyk” is less than that of Excel­lence” because launch­ing the land­ing page required pay­ing for the work of a UX/UI spe­cial­ist, design­er, devel­op­er, and copy­writer. There­fore, the effi­cien­cy of the video pro­duc­tion com­pa­ny Excel­lence” with Insta­gram ads will be high­er: low­er costs with the same num­ber of leads, which means high­er revenue.

What are the para­me­ters of pro­duc­tiv­i­ty and effi­cien­cy for employees?

The assess­ment of pro­duc­tiv­i­ty and effi­cien­cy depends on the size and type of com­pa­ny (prod­uct or IT) and the cho­sen KPIs. In this arti­cle, we use indi­ca­tors that assess client com­pa­nies of Work­sec­tion as exam­ples. Such indi­ca­tors include:

  • time and mon­ey spent. How quick­ly did the employ­ee com­plete the task? How much mon­ey did the com­pa­ny spend to com­plete the task?
  • the ratio of over­due to on-time tasks
  • the ratio of planned to actu­al costs for task com­ple­tion. Did they stay with­in bud­get when com­plet­ing the tasks or did they have to spend more than planned?
How to use the data on labor effi­cien­cy and pro­duc­tiv­i­ty assessment?

  1. Improve team per­for­mance. In the lean man­u­fac­tur­ing tool PDCA, team effi­cien­cy assess­ment is used to devel­op new approach­es that should enhance employ­ee pro­duc­tiv­i­ty in the next iteration.
  2. Increase salary or employ­ee lev­el. For exam­ple: pro­mote them from junior to middle
  3. Fore­cast how much time and mon­ey will be need­ed to solve a SMART task (Achiev­able criterion).
  4. Plan a task for the next time peri­od (sprint) con­sid­er­ing the aver­age time tak­en to com­plete sim­i­lar tasks.
  5. How per­for­mance is assessed at Google, Deloitte, Net­flix, One2, and Vol­ta One

At Google, effi­cien­cy is assessed using three tools:

OKR (Objec­tives and Key Results) — a goal-set­ting and key results prac­tice. At Google, this prac­tice looks like this:

  1. - an employ­ee sets a goal once a quar­ter and iden­ti­fies three results they hope to achieve;
  2. - at the end of the quar­ter, the employ­ee self-assess­es each result;
  3. - a score of 0.6 — 0.7 means that an ambi­tious goal was achieved. A score of one means that the employ­ee set too easy a task.
Peer eval­u­a­tion method 360 degrees. Employ­ees eval­u­ate each oth­er on a five-point scale. The scores are summed up and the man­ag­er pro­vides an over­all assessment.
Man­ag­er eval­u­a­tion. An anony­mous report with eval­u­a­tions is released every six months. The report eval­u­ates the qual­i­ty of com­mu­ni­ca­tion and the clar­i­ty of the goals set by managers.

At Deloitte and Net­flix, depart­ment heads hold week­ly one-on-one meet­ings with employ­ees. In these meet­ings, they ana­lyze the rea­sons for suc­cess or fail­ure, assess­ing work effi­cien­cy. At Deloitte, a man­ag­er answers ques­tions like: Do I want this employ­ee to stay on my team?”. At Net­flix, as well as at Google, employ­ees also eval­u­ate each oth­er using the 360-degree method.

At the video-per­for­mance agency One2, employ­ee effi­cien­cy is assessed using the fol­low­ing tools:

dai­ly stand-ups. Each team mem­ber takes turns report­ing on results from the pre­vi­ous day, mak­ing com­mit­ments for the cur­rent day, and shar­ing issues. Dai­ly stand-ups demon­strate what is hap­pen­ing in the com­pa­ny and how to make work more efficient

ret­ro­spec­tives. Reg­u­lar meet­ings in Agile teams where the work process is dis­cussed. With ret­ro­spec­tives, it’s pos­si­ble to under­stand what mis­takes were made and how to fix them — for exam­ple, how to increase the num­ber of con­cur­rent tasks with­out los­ing quality.

At the dig­i­tal agency Vol­ta One, effi­cien­cy is assessed based on the time spent on tasks. This involves con­nect­ing tools: a time track­er and reports. The time spent is also cru­cial for adver­tis­ing and PR agen­cies, as well as law firms.

Pro­grams and ser­vices for assess­ing labor effi­cien­cy and productivity

To assist in pro­duc­tiv­i­ty assess­ment, a ded­i­cat­ed per­son can be appoint­ed who will have access to all tasks, reports, and tools. At Achi­va Net­work, this spe­cial­ist enters all tasks from the week­ly coor­di­na­tion meet­ings, not­ing where dead­lines were missed and who did not take on the task. In Sre­da Dig­i­tal, these func­tions are per­formed by a project man­ager’s assis­tant. This helped reduce the aver­age response time to clients to 15 min­utes and low­er account­ing costs.

For track­ing time spent

Tog­gle — a free time track­er that shows the time spent on a task. This is a con­ve­nient tool for com­pa­nies with an hourly pay­ment sys­tem. By dig­ging into the reports, one can assess the cost of sim­i­lar projects, pro­duc­tiv­i­ty, and employ­ee work effi­cien­cy.
Res­cue­Time - an appli­ca­tion for self-assess­ment on a PC. The app tracks all activ­i­ties and cat­e­go­rizes them: design, busi­ness, social media, enter­tain­ment. At the end of the day, you can look at the sta­tis­tics and under­stand how much time was actu­al­ly spent on tasks and how much was spent surf­ing the web and mes­sag­ing.
TeamViz — a free timer and task man­ag­er based on the Pomodoro tech­nique, which we wrote about in a sep­a­rate article.

For self-assess­ment by employees

Week­done OKR Soft­ware — a sys­tem for imple­ment­ing OKR in a com­pa­ny. Includes quar­ter­ly goals, week­ly plan­ning, and PPP reporting.

Mer­cer Met­tl 360view — a plat­form for col­lect­ing and ana­lyz­ing eval­u­a­tions using the 360-degree method.

For track­ing over­due ver­sus on-time tasks/​planned ver­sus actu­al costs

TMet­ric — a time track­er that has two sig­nif­i­cant advan­tages: inte­gra­tion with major task man­agers and the abil­i­ty to deter­mine prof­it per project by spec­i­fy­ing the bud­get and labor costs.

Trel­lo - a project man­age­ment sys­tem using Kan­ban boards. Kan­ban boards make it easy to see how many tasks are in process and how many are com­plet­ed on time.

Work­sec­tion - a project man­age­ment sys­tem with Kan­ban boards, a time track­er, and Gantt charts. By means of auto­mat­ed reports, one can under­stand what con­sti­tutes the project bud­get and which employ­ee has the most over­due tasks. You can test the project man­age­ment sys­tem for free for 14 days right now.

4 Work­sec­tion tools for assess­ing work efficiency

Time track­er

The built-in time track­er will show how much time has been spent on the project and help fore­cast how long it will take to com­plete typ­i­cal tasks. If you set an hourly rate in hryv­nias and dol­lars, Work­sec­tion will auto­mat­i­cal­ly cal­cu­late the employ­ee’s salary.

Report

In Work­sec­tion, reports are gen­er­at­ed auto­mat­i­cal­ly — just enable fil­ters for the num­ber of com­plet­ed tasks or time spent on the project. For exam­ple, at Visot­sky Con­sult­ing, week­ly reports are cre­at­ed to see how many tasks were com­plet­ed last week and how many were missed or not com­plet­ed on time. The gen­er­at­ed report can be export­ed to XLS to man­u­al­ly cal­cu­late the ROI or prof­itabil­i­ty of the project.

Gantt chart

In the Gantt chart, it’s con­ve­nient to plan tasks and estab­lish rela­tion­ships between them. How­ev­er, this tool can also be used to assess team pro­duc­tiv­i­ty in their project work. For instance, account man­agers at Vin­tage Web Pro­duc­tion export the project time­line to Excel and send it to clients.

Fil­ter

Fil­ters help ensure dead­lines aren’t missed and track each employ­ee’s work­load. Fil­ters are used at TEBIN and Achi­va Net­work: the for­mer checks employ­ee work­load through fil­ters, while the lat­ter checks dead­lines and the num­ber of tasks for each employee. 

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