• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

What Are Productivity Metrics? Definition & Measures

What Are Productivity Metrics? Definition & Measures

Table of Contents

  • Productivity Metrics – Definition
  • 4 Productivity Metrics
    • Revenue Per Employee (FTE)
    • Profit Per Employee
    • Human Capital Return On Investment (HCROI)
    • Absenteeism Rate ( Absent Rate)

Productivity Metrics – Definition

They help to identify potential problems by collecting relevant data from the process. They also help to take effective steps to correct and control any abnormality in the company’s processes.

Furthermore, proper evaluation of these metrics helps to prevent revenue losses to the company as well as the client/customers. These metrics provide insights into the effectiveness and efficiency of processes.

Precise quantified analysis of employee’s productivity, production or services defines the importance of productivity metrics.  Higher results of these measures are indicators of the growth and development of any organization.

4 Productivity Metrics

There are 4 major metrics under productivity: Revenue Per Employee (FTE), Profit Per Employee (FTE), Human Capital Return on Investment (HCROI), and Absenteeism Rate. Here FTE stands for Full-Time Equivalent.

Revenue Per Employee (FTE)

Revenue per employee, also known as sales per employee is an operating performance ratio.  It is used to measure the average revenue obtained against each employee.

Mostly, labor-intensive industries use these metrics. It means those industries where the value of human capital is more than their physical capital. In other words, a measure to know how efficiently a company uses its workforce.

Click on the link to understand Revenue Per Employee in detail with formula & examples. Additionally, you can also download a ready-to-use Revenue Per Employee Calculator in excel.

Revenue Per Employee Calculator

Profit Per Employee

Profit Per Employee, an HR Metric and also an accounting ratio that you can use to measure the efficiency of employees and the performance of the company over a period of time. This metric emphasis on the return on talent.

It is an output-based measure that helps the management to focus on increasing profit relative to their workforce.

Understand Profit Per FTE in detail with formula & examples along with a ready-to-use Profit Per FTE Calculator in excel.

Profit Per Employee Calculator

Human Capital Return On Investment (HCROI)

Human Capital ROI or HCROI, a metric that evaluates the monetary value the workforce adds against the money spent on their compensation. These compensations include salaries, extra monetary benefits, etc spent on FTEs and contingent(temporary or part-time) employees of any organization.

Human Capital ROI evaluates how much financial contribution made by employees individually or collectively. Therefore, it gives us a true measure of the productivity of our human resources.

Click on the link to understand Human Capital Return on Investment in detail with formula & examples. Additionally, you can also download a ready-to-use Human Capital ROI Calculator in excel.

Human Capital ROI Calculator

Absenteeism Rate ( Absent Rate)

Absent Rate means the percentage of the workforce that is absent during a particular period against the total strength.

A higher absent rate indicates a disengaged workforce and also considered as a major factor in higher employee turnover.

Understand Absenteeism in detail with formula & examples along with a ready-to-use Absent Rate Calculator in excel.

Absent Rate Calculator

We thank our readers for liking, sharing and following us on different social media platforms.

If you have any queries please share in the comment section below. We will be more than happy to assist you.

Filed Under: HR & Payroll Glossary

You are Here: Home / HR & Payroll Glossary / What Are Productivity Metrics? Definition & Measures

About Shabbir Bhimani

I have worked in Excel and like to share functional excel templates at ExcelDataPro.

Comments

  1. G. Praveen Kumar says

    November 29, 2019 at 10:07 am

    Its very helpfull thank you

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ExcelDataPro

Free Excel Pro Templates

  • Glossary
    • Accounting Glossary
    • HR & Payroll Glossary
    • Tax Glossary
  • Templates
    • Accounting
      • Financial Analysis
      • Financial Statement
    • Educational
    • Taxation
      • Federal Income Tax
      • GST
      • UAE VAT
      • UK VAT
    • Human Resources
      • HR & Payroll
      • HR Metrics
    • School Management
    • Social Media
    • Sales-Marketing
    • Personal Finance
    • Other
      • Health & Fitness
  • Functions
  • Calculators
  • Home
  • Contact
  • Privacy
  • Terms

© ExcelDataPro 2025. Content Licensed Under Creative Commons with Attribution Required

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT