What is Employee Effectiveness?

Employee effectiveness is a capability of employees to produce a specific, desired effect with minimized costs and in strict compliance with initial requirements. It is a qualitative characteristic that indicates the extent to which targeted problems are addressed and the degree to which preset goals and objectives are achieved by employees.

Employee effectiveness means a situation when a worker produces a desired outcome in the best possible way. Labor output acts as a key parameter for measuring employee effectiveness. For example, a web designer’s effectiveness includes labor costs the employee spends within a period of time (e.g. week) on developing a draft of a website. The drafted website will be labor output of the designer. Higher effectiveness of this employee is reached if the website is designed as close to customer requirements as possible and with minimized costs.

Employee effectiveness can be improved through a range of activities that create a better working environment. Here’re some examples of such activities:

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