The 3/2 rule of employee productivity

The more employees your company has, the less productive each of these employees are. It is a generalization, of course, but a useful one and one that is confirmed by most people who have worked for growing organizations. As the company grows, so does the internal processes and the layers of bureaucracy, and the time spent on communications grows rapidly.

https://www.cybaea.net/Journal/employee_productivity.html

 

Why is this important? Well if you think about it, there's 2 ways for a company to become more productive.

If a company of 500 people wanted to become more 2% more productive they could add 10 extra people (or more if you're to believe the 3/2 rule of productivity). Add a cost of say £30k per year (fully burdened) that's an extra £300K every year.

Or they could make their existing staff 2% more productive. That's the equivalent of 10 minutes a day per user.

Which reminds me of a story I heard,  but more of that in my next post .. .. ..

Comments

• Anonymous
  January 01, 2003
  This is part 2 of my previous post - The 3/2 rule of employee productivity . This is a story that someone