‘Time is Money’ and our white-collar workers extensively abide by this mantra. Every time an employee flakes out, the company loses a huge chunk of money, and therefore efficiency and productivity are the two pillars an organization works on. So what exactly does ‘efficiency’ mean?
The concept says, ‘How efficient a person is, depends on where the resources and energy are going and how much of them are being used to obtain a certain result’.
The efficiency of an employee is mainly categorized in two ways:
Static
Static efficiency is measured when an employee has to take advantage of a preliminary process or product and entails improving it. In other words, it is mostly concerned with pre-existing resources.
Dynamic
Dynamic efficiency refers to the creation of new processes or products with time, ipso facto generating new opportunities, and improving profitability. So, it mostly deals with acquiring new resources.
There are 4 metrics on which efficiency is measured:
Desktime: The time spent on the system (computer).
Productive Time: The time spent on the productive application.
Productivity: It is defined as a Productive time divided by the Desktime.
Effectiveness: It is the amount of time invested in doing the right thing for the aforementioned time (generally, the 9 to 5 routine).
It is important to note that productivity and efficiency are two different elements. An employee may be productive but dissipating the resources, whereas an efficient employee perchance is producing lesser work output.
Efficiency analysis also uses math to calculate potential losses one might incur for costs. The following formula identifies these losses as a result of inefficient use of time:
We observe that the term ‘Project Cost’ is an integral part of calculating losses and hence, reducing it is indispensable. What if there was a way to keep a check on these types of costs?
xTimesheet is an application that can assist in tracking the project cost. Each hour spent on a project results in an hourly wage and overhead, xTimesheet incorporates features like the hours spent on a task.
The application has a fluid interface to track progress irrespective of whether a project is internal or external. xTimesheet app is super easy to use. It will mark the unproductive activities based on the details filled by the employees, which in turn will make the decision-making process easier for the managers. It also provides better insights into future estimates.
In case of any discrepancies found by the manager, she/he can reject the timesheet and ask the employee to resubmit their timesheet after making the required changes. In this way, the time spent on each task will be managed effectively and the employer will be aware of the productivity and efficiency of her/his employees.