There are three production resources that companies must effectively manage: capital resources, raw materials, and human resources, alias labor. A good management of these three resources will ensure the company’s long-term success.

In the management of human resources to be effective. Companies need to know what is called productivity at work and how to calculate it. Understand what contributions are and how they are calculated here.

The meaning of work productivity

Productivity is the ability of a company’s production resources to produce goods and services. in the context of labor Productivity is the ability of company employees to produce goods and services.

The reason why production is important is because the company’s production level is higher. The lower the cost of production incurred by the company, however, there are limits to both workers, machines and capital, so productivity still needs to be calculated for efficiency.

how to calculate yield

Theoretically, employee productivity is calculated by:

Productivity per person = Number of products produced / Number of workers


Productivity per person = Number of products produced / Number of hours worked

This formula can then be modified by entering variables such as salary, hours worked, and additional hours or number of employees. to see the performance of employees of the company in economic theory This concept is known as the marginal productivity of labor (MPl).

However, in practice, there are two main ways to calculate employee productivity. Often these methods are used together to some extent. Two of them are:

1. Qualitative

The method for calculating qualitative output is a method for calculating output based on the quality of output. Therefore, this calculation method is generally more subjective than the quantitative yield calculation method.

For example, a content writer’s performance is not measured solely by the number of articles created each day or the amount of traffic that enters the company’s website. but also assessed by the quality of the articles produced

as well as customer service The productivity of this work is not calculated solely on the number of customers serving customers. But it also depends on the quality of the services produced.

2. Quantitative

The next method for calculating employee performance is the quantitative method. In this case, the employee usually has to meet certain goals. These goals are generally based on different indicators based on department needs. and considering the company’s past performance and aspirations for the future This method of calculation is widely used as it is more objective and easier to estimate.

For example, a job as a salesperson is assessed on the number of customers or partners who visit or purchase a company’s products. Employees of this department often receive a bonus if the number of customers or partners who purchase the company’s products exceeds the target number.

How to increase productivity at work

1. Technological innovation

It is undeniable that technological developments played a role in increasing the productivity of companies. For example, the existence of steam engines made it easier for ancient production workers to increase their productivity. Thus, the so-called industrial revolution was born today.

Another example is advertising or opening. online store Through the Internet, companies are now able to reach customers from off-island or even overseas. In some cases, technology reduces the need for human resources. But it is undeniable that the technology increases overall productivity.

2. Create KPIs with SMART principles

Key Performance Indicators (KPIs) are widely used analytical indicators of employee performance. KPIs must be carefully crafted to match employee capabilities. Here is the term SMART KPIs which stands for Specific, measurable, relevant, and timely.This means that KPIs must:

  1. Specific: A clear purpose.
  2. Measurable: Targets can be measured.
  3. Attainable: Be realistic and attainable by employees.
  4. Relevant: Relevant to the company’s business strategy.
  5. By time : There is a time limit.

This is necessary so that managers can assess employee achievements and employees can achieve their desired goals as well. This is because employees may not achieve the desired level of performance. Not because they are lazy, but because the KPIs are unrealistic.

3.Consider employee welfare

Another way to increase employee productivity is to pay attention to employee welfare. This well-being is not just comprehensive. Not only the gross salary but also include:

  1. Work-life balance (WLB) In this case, the company must limit the working hours of employees so as not to interfere with daily life. Because the output also depends on the energy provided by the employee the next day.
  2. overtime and allowance. Overtime work is allowed, but must be limited. In addition, the overtime paid by the company must be in line with the productivity of employees. Overtime pay and benefits will be affected later. disposable income employee.
  3. Other facilities. It cannot be denied that in addition to money problems Potential employees also consider other facilities. provided by the company as well These facilities, such as lunch rations, Credit change money, etc. In some cases, employees, especially women with children. also need facilities nursing room so you can focus on the work

by appreciating the contributions of employees in this way The company will not only increase employee motivation. but also increases productivity, for example with is nursing room In the office, female employees with childcare can stay ahead of time and focus on work. Because I don’t have to send my child to the nursery.

Employees who are overworked without proper compensation are easy to switch companies. In addition to causing the company to lose valuable manpower. It also costs companies a lot of money. The reason is that companies have to pay recruitment fees time after time. Not to mention the fact that new and old employees go through another process of adaptation in order to work efficiently and effectively.

4. Training

The higher the quality of the company’s human resources, the better. The higher the company’s productivity, this is because HR can find ways to work more efficiently and effectively. One way to improve the quality of human resources is to provide training. Especially in relation to the use of new technologies.

For example, training employees to use cloud storage technology products. This training makes it easier for employees to work and collaborate anytime, anywhere. Because cloud storage makes it easier for employees regardless of their current location.

The presence of training can also increase the productivity of a company’s employees by increasing the engagement or connection between employees. This makes it easier for them to interact and work together to formulate an efficient and effective company production strategy.


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