Employee Efficiency is a complex measurable parameter which characterizes an output produced by efforts and by achievements of an employee. In the most cases the employee efficiency answers these questions:
- Is this employee useful to organization? (Does he produce more value than he consume?);
- How useful this employee is? (What worth the employee produces exactly?);
Major interpretations of the term “Employee Efficiency”:
There is no single understanding of this quite wide term, but usually sense of Employee Efficiency refers to the following conceptions which intersect with each other in certain aspects and usually are used in a mixture:
- Productivity-oriented approach: it stands for objective appraising of the value produced by efforts and talents of the employee and comparing this value against the worth of inputs and resources provided to this employee by the organization. In other words this attitude means determining the level of employee profitability: his or her ability to convert investments into direct profits or some long-term benefits;
- Objectives-oriented approach: it stands for determining an ability of employee to accomplish certain amount of work (or to achieve some other required objectives) within a given period of time or/and other business resources. This attitude identifies an employee as efficient one if he or she properly fulfills certain working plans or matches certain productive norms. These plans usually imply certain inbuilt level of profitability;
- Performance-oriented approach: this attitude means giving an appraisal to a manner which an employee adheres to while carrying out his or her job. In this case the employee efficiency is analyzed by measuring compliance of his/her activities with certain standards or requirements. This attitude states that employee is 100% efficient when he or she strictly follows a predefined procedure or workflow which is considered as efficient.