How to quantify your people’s performance productivity by Ethan Chazin


Your Organization’s Staff Census
Conduct a STAFF CENSUS and overlay that onto your organization chart, in order to conduct an employee portfolio. Conducting a census of your organization’s employees entails looking up and down the organization as well as across functional areas, and at various locations, to see how well staffed you are to handle current workloads, as well as future planned short and long-term projects that will require additional staffing.
Conducting such an organization-wide census will help you to identify who you have, and who you need. A staff census helps you to develop your Talent Acquisition/Management.
Employee Return on
Your employee Return on investment (eROI) is an effective way to determine if you are optimizing your , by generating an acceptable return on your investment into your employees, based on what you pay them and their productivity? Here is how you begin quantifying employee cost versus their productivity return to your organization.
Employee Cost
An employee’s “Cost” can be estimated by applying a factor of 1.2 to 1.4 * the employee’s base salary.
When we refer to employee “COST” that can be determined by applying the sum total of everything it takes to keep an employee. Cost includes their base salary, bonuses, cost of living adjustments you provide, any/all benefits, training, certifications, memberships, transportation, meals & entertainment, etc.
eROI can be measured using the average revenue that is generated on a per-employee basis. You calculate this by using your total annual revenue divided by the total number of employees, and your employee’s key performance indicators (KPIs) which have their annual, quarterly, monthly goals.
eROI (employee value/contribution) can be measured using revenue per employee * .X% of the employee’s KPIs achieved/reached. The percent completion of KPI is a way of determining how the employee was to achieving their established goals?
How do employers feel about/are they using eROI?
· New hire performance metrics are used by 51% of companies.
· Turnover and retention metrics are used by 48% of companies.
· Hiring Manager satisfaction rates are used by 41% of companies.
Performance, productivity, and retention are the 3 most critical factors you have available, in order to determine an organization’s “Quality of Hire.” (QoH)
· Performance – average of all new hire performance ratings.
· Productivity – as defined by KPIs.
· Retention – % of new hires on-board at the end of the year.
Ex. Using these 3 ratings/metrics…if you scored an 80%, 75%, and 70% on these 3 metrics, then the average QoH you achieved is 75% or C to C+ range.
Hat tip goes out to Howard Matalon of Olender Feldman for sharing these concepts during a recent talk conducted at Affinity Federal.


I am in all things a DEVOTED HUSBAND and FATHER, management consultant, HR consultant, business strategist, employment training & professional development, organizational behavior tweaker, motivational speaker, executive coach, author, inspirational teacher, marketing sherpa, business consultant, radio celebrity, stand-up comedian, career coach to entrepreneurs, observer of today's social dysfunction, start-up facilitator and biz owners' best friend, a corporate trainer, and business consultant.

As the Founder and President of The Chazin Group, LLC I apply my experience leading teams through significant transformation across many industries by best leveraging their employees for success.

Let's explore how I can help YOU to unleash your untapped potential! Get in touch using