Employers of yore had it so easy.
Actually, forget yore. Employers from just a few decades ago had it pretty easy too.
Here’s why: During the manufacturing boom, it was simple for companies to measure productivity. The factory setting allowed for quantifiable tracking of inputs and outputs, and for many years the following formula reigned supreme as the primary determinant of a team’s productivity:
It certainly is—if your business entails running a factory. If you don’t fall into that camp, things get a little more complicated.
As anyone who has spent time in a modern office can attest, determining the inputs and outputs involved in a day’s work can be wildly challenging. There are so many seemingly unquantifiable factors involved, from policies and processes that may influence an employee’s workflow, to relationships between coworkers that can help or hinder efficiency. Plus, most employees perform a variety of tasks, many of which may not be quantifiable.