The aim of any entrepreneurship is to get profits. The more effective personnel work, the better results you get. Employees’ attitude and quality result of each employee depend on a set of values and aims of each employee at work. In order to find ways to enlarge quality and quantity results of a company, management need evaluation of personnel performance effectiveness. General indexes of personnel performance effectiveness can be measured directly or indirectly according to several economic parameters of company operations.
Let us give a small review on general indexes of personnel performance effectiveness.
- The percentage of salaries in production and services prime cost.
This is one of the most important indexes of personnel performance effectiveness evaluation. Eventually, profitability of a company depends on it. Alterations of this index should be followed periodically with a certain time interval. At the same time, the less is the percentage of salaries in the prime cost, the worse employees perform.
- Time spending.
This index is also connected with personnel performance effectiveness evaluation. The less time an employee spends on production of one item of products or services, the more effective his performance is. This index depends not only on personal characteristics of an employee, but also on workplace management and psychological climate in the team.
Now managements of large and successful companies monitor employee performance by means of time tracking systems. This tool helps to measure time spent on different kinds of activities and work tasks implemented by employees and to calculate indexes of employees’ effectiveness. Time trackers are installed on computers and all information on time spending is recorded. Then this data is analyzed by a time tracking system and time tracker reporting can inform higher management about the level of personnel effectiveness.
However, time trackers can be used not only by chief managers or heads of departments for their control. If the access to time tracking system is open for employees, they are able to check themselves, manage their time better and to eliminate activities which are not productive.
- Communications in the team.
Culture of communication between colleagues and with customers is also one of important abstract indexes of personnel performance effectiveness evaluation. Good emotional environment in the company helps to enlarge effectiveness of personnel and to cope with difficulties and problems in the company. Moreover, if the main index of effective personnel performance in production process is the volume of output of quality products, the most important thing in services sector are communication skills of each employee.
- Personnel turnover.
If there is a high level of personnel turnover in a company, this means that three indexes stated above don’t meet the requirements of personnel. Management should provide the analysis of the situation in the company and take appropriate actions.