María Alcaraz

Can productivity be measured?

In order to measure the productivity of a company in a swift manner, the following equation may be applied: Productivity = (Products or Services Produced) / (Resources Used). Which means that a company is productive when the use of resources is optimized.

That may seem easy, but it is not rare to make some mistakes that unbalance the equation. If we really want to know how productive our company is, we may start by following several bits of advice that will help us measure real productivity.

4 ways to measure productivity

Evaluate whole company

We shouldn’t evaluate each area individually, but the company as a whole. If we get the results separately, we will only obtain information on that given area. Besides, managers should have a comprehensive view of the business so that the company as a whole is their goal, not just their department.


If there’s no employee in charge of statistics, we may create the job position. This expert will be in charge of developing indicators to measure productivity, as well as keeping them up to date and linking them to business strategy.

Measure productivity

In order to connect the different areas in the company, we should measure productivity in all employees.


Once all our measurement indicators are linked to our company strategy, we will need to obtain data periodically.

Some advice to measure productivity

Productivity may also be regarded as the amount of work that is done in the shortest possible time. Needless to say, this should be quality work. Because of that, other pieces of advice to measure productivity in a company are listed below:

  • Comparing current results to those of previous periods (shifts, day, month and year).
  • If working in an industry setting, find out how many hours and people were required to create a single unit of product. It could also be helpful to find out the amount of electricity, water or gas that was required to do so.
  • Find out how much supply or raw material was wasted away.
  • Keep an eye on the number of units that were rejected in the quality control process or that were not suitable for sale.
  • Calculate productivity again every time a change is introduced in the company.

How to increase our productivity

In closing, let’s check some aspects we may introduce to increase our productivity or that of our employees (many of them have already been discussed in previous articles):

  • Trying to make the surroundings as comfortable as possible: good environmental quality, proper lighting, good ventilation...

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