Why you measure employee capabilities
First of all, it is important to note that people as workers are probably the most important resource in a company because all work processes are in their hands and only they are able to recognize complex relationships and solve them if necessary.
Nevertheless, a worker is also an expensive resource because the salary usually increases steadily due to wage adjustments and the money must also be paid to him when he is on vacation or sick. Therefore, many business leaders see the future in automation and digitization to reduce costs and workforce dependency.
An accurate calculation of how many workers are required for which work step is therefore important and makes a human’s productivity comparable to a machine.
A look at productivity
Workplace productivity is an important indicator because it shows the relationship between the result and the work performed. This key figure is not only interesting for personnel management, but also for control, because here weak points can be quickly identified and optimization opportunities identified.
It can be calculated labor productivity with a very simple formula that sets the work result (output) in relation to work input (input). It is therefore important to determine in advance exactly what output (eg number of goods, weight, turnover) has been generated and what input (eg number of workers, working hours, products or orders) has been used for this . Calculation examples can be found on the Internet.
A look at labor demand
A trend can be seen in many companies, more and more workers want to work part time to do more for their work-life balance. This brings new challenges for HR management, because the bottom line is that the work must be done. So how are the part-time employees compared to the full-time employees?
By putting them through full-time equivalente make it comparable, you can calculate what staff requirements (employee capacity) you have in the company. Abbreviations that you may encounter when researching on the Internet are FTE (full-time equivalent), FTE (full-time equivalent) or MAK (employee capacity). A full-time position, eg 40 hours, is assigned a factor of 1.0. A part-time position with 20 hours will then be 0.5 and a 10-hour position 0.25.
The requirement must always be calculated on the basis of the full-time position, how many employees are required is then the task of the personnel management. A workflow with a factor of 1.0 can of course only be carried out by one full-time employee, or with a corresponding possible division, also by 2 part-time employees with 20 hours each (2 x 0.5 = 1.0). Calculations and case studies can also be found on the Internet.
There are other factors
The two aforementioned indicators are only two factors for assessment, but should not be overestimated when viewed separately because they do not take into account the quality or qualifications of the workforce. The quality of the work can also not be measured, which is crucial for the customer. Also the order situation can not be readif you do not have any orders, this will inevitably affect both factors.
Such a measurement process must always be seen in a larger context and, above all, specifically for the respective company and its industry. Only then can conclusions be drawn Make staff decisions wisely and sustainably.
The human factor should be carefully considered when making staff decisions. Of course, a worker is expensive, but they are usually also indispensable, so all processes in the company fit smoothly. Personnel management is an important component for the future of companies and should be run with care.