Formula
Productivity per Employee = Total Output ÷ Number of Employees
Calculation Example
If a company generates $10,000,000 in revenue with 100 employees, Productivity per Employee = $10,000,000 ÷ 100 = $100,000
Data Source
Financial reports, performance evaluations
Tracking Frequency
Quarterly, Annually
Optimal Value
Higher is better; should align with industry benchmarks.
Minimum Acceptable Value
A declining productivity rate suggests inefficiencies.
Benchmark
Industry benchmarks: Tech ~$150,000-250,000 per employee, Manufacturing ~$50,000-100,000
Recommended Chart Type
Line chart (to track trends), Bar chart (to compare teams)
How It Appears in Reports
Displayed in HR and finance reports to assess efficiency.
Why Is This KPI Important?
Indicates workforce efficiency and operational effectiveness.
Typical Problems and Limitations
May not account for qualitative contributions like innovation.
Actions for Poor Results
Automate repetitive tasks, invest in employee development, optimize workflows.
Related KPIs
Employee Engagement Score, Time to Hire, Absenteeism Rate
Real-Life Examples
A company improved productivity per employee by 25% by introducing workflow automation.
Most Common Mistakes
Focusing only on output without considering employee well-being.
