“In business, the 80/20 principle is behind any innovation, any extra value. It is an entrepreneurial principle, a formula for value creation utilized not only by entrepreneurs but by most managers and organizations.” – Richard Koch.                                                                                                         

Some of the most time-consuming tasks in an organization’s day-to-day operations are those associated with employee productivity tracking. With a workforce composed of dozens, even hundreds of employees, it is often difficult to identify and correct problems quickly enough to make any real progress towards improving overall performance.

The 80/20 rule states that 20% of one’s efforts are responsible for 80% of the desired results.

If you’re a business owner, it’s important to get your employees on board. There are certain things that individuals just won’t do because they don’t believe in it. It is possible to achieve this despite what everyone else believes. This rule may also be applied to the workforce, allowing management to identify which workers contribute the most and waste time.

By doing so, it is possible to reduce overall employee turnover rates while increasing productivity levels across the board.

Let’s understand the 80/20 Rule with some examples-

Understanding the 80/20 Rule- Pareto Principle

As per the Pareto principle, 80% of your results are driven by 20% of your efforts. But how can this principle boost your company’s efficiency?

When you understand that the majority of your results come from a small number, it’ll be easier to pinpoint which efforts are driving the most in terms of business. When we know how many people make up our success percentage rather than focusing on raw numbers alone – then there’s no need for confusion.

For example- Let’s say you have a long list of clients. After some 80/20- inspired research, you realize that 80% of all revenue comes from just six clients. You could be more successful if you focused your time and energy on these six clients that matter most to generate income instead of managing many clients.

The key point is that the 80/20 principle allows you to optimize your efforts, ensuring that every activity generates the most significant level of results. It will also enable you to find out where you’re spinning your wheels while getting no results, so you may let go of those activities and focus on what’s really working for you.

Also read: Productivity Tracking Software: What, Why, and How?

Pareto Principle with examples

Pareto Principle

Source: Investopedia

Still wondering how the Pareto principle can help you and your company? The Pareto principle may be applied to a wide range of small and mid-sized enterprises (SMBs) in many different ways. For example-

  • Of your total sales, 80% might come from 20% of your sales force.
  • 80% of your income may come from 20% of your clients or customers.
  • 20% of your calls may obtain 80% of your new customer acquisitions.
  • 80% of your total leads may come from 20% of your lead sources.

It is not a difficult task to understand the 80/20 rule; the way the Pareto principle works out in your business will be determined by your systems, products or services, consumers, and other factors that make your firm distinct. These examples show how the 80/20 rule can help you in great client retention and expand your customer base.

But what are the ways to apply the 80/20 rule to track the productivity of employees? We will discuss this in the next section-

Seven ways to apply the 80/20 Rule to track productivity of Employees

Let’s review some ways through which you can apply the 80/20 rule to track productivity of Employees-

you’re talking about clients and suddenly employees. there’s a connection missing here.

1. Identify how your employees spend their time

Identify how your employees spend their time

The Pareto rule (80/20) only works if you can accurately identify which 20% of your activities yield 80% of your results. The easiest approach to assess these attempts is to delve into how your employees spend their time. How to do it? Track the time of your employees.

For one week, keep track of how you spend each second of your day both at and outside of work. You can use any time tracking tool, or if you want to stick with the old-fashioned approach, simply keep track by hand. It’s fine if you use any method to track your time. What matters is that you keep track of where each minute goes.

You will get a clear idea of where your time is going after a week of tracking it. If you use a time tracking tool to calculate your time usage, you can see where your time is going using different charts and graphs.

Thus, It will become a lot simpler to identify what you’re doing right (the 20%) and what you’re doing wrong (the 80%).

2. Go for automation

Go for automation

When you’ve completed your time monitoring and look at how you’re spending your time, you’ll probably notice some activities that you can’t remove, but neither are they producing results.

What’s the best approach to handle those tasks? Go for automation.

Automation is a fantastic tool for simplifying activities in your business that are necessary but aren’t producing a lot of results. E.g., In any business, invoicing is an obligation; you must invoice your clients if you want to be paid. But It’s not a good use of your time to spend 12 + hours or more every week manually invoicing each client, and it won’t accomplish anything.

That’s where automation comes into play. Don’t spend a large number of hours each week on the invoicing procedure. Try using accounting software like Invoicera to automate the complete process of sending invoices, keeping the financials of your business in order, and tracking invoices.

In this way, you may utilize the time you were spending on invoicing in the areas (the 20 percent) that are yielding results (the 80 percent).

Also read: Top 22 Workplace Productivity Statistics You Can not Afford to Ignore in 2021

3. Identify key customers who are generating maximum profit

Identify key customers who are generating maximum profit

As discussed earlier, only a tiny proportion of your clients and customers is responsible for a significant amount of your income. So, if you want to increase revenue and take your company to the next level, you must first identify those clients and develop strong relationships with them.

Take a hard look at your finances. Where is the large portion of your income coming from? Narrow down your client or customer list so you can devote yourself to the people who are generating actual results for your business.

This will not only make your business simpler to run but is also likely to boost revenue. You’re far more likely to drive income by providing a greater level of service to clients who have already spent money than wasting your time with the other 80% that aren’t spending much money.

4. Pin down key areas of your projects that demand attention

More often than not, it becomes difficult to keep a check on multiple projects and employees. A few good managers can do this easily, but the majority aren’t! The major problem with managing projects is that there always will be areas that need more attention from you as a manager, and sometimes these issues overlap with different tasks.

How to identify critical areas that need your attention?

You may use project management software tools to identify critical areas of your projects by plotting all tasks and noting which ones contribute most to the overall project completion time. This way, you can make sure that the essential tasks in your projects are done by applying the Pareto principle in your project management to get more work done with less effort in a shorter period of time.

5. Recognize new skills developed by your employees

Recognize new skills develop by your employees

Source: finereport

Tracking productivity is essential but difficult to execute the task. Having detailed reports for every activity of your workforce can help improve future output and highlight when there are problems with workflow and distractions within the office.

By providing regular reports on productivity, employees will stay mindful of improving their skills and goals. These reports don’t have to be exhaustive details, just enough for management to see if there’s room for improvement in the area of performance. One-on-one meetings or quarterly reviews can help communicate changes or modifications that an employee has made in a particular skill set over time.

Without this information for both individual workers and the office as a whole, it’ll be more challenging to strategize to improve efficiency moving forward.

In this way, with detailed reporting, you can quickly identify the main areas (the 20 percent) that are yielding results (the 80 percent).

6. Spot the insignificant tasks to focus on your business goals

Spot the insignificant tasks to focus on your business goals

Online timesheets can help a company be more successful by streamlining a process, saving time, and making sure that everyone is paid correctly.

If a team is spending more than 50% of their time on administrative tasks that have nothing to do with the goals of your business, then those hours from that team need to be directed elsewhere using activities like training, audits/inspections, etc. Implementing online timesheets not only provides managers information but also promotes productivity and reduces wasted hours for employees by eliminating the process of paper checking so that you can focus on other critical areas of your business.

With online timesheets, you can easily target the productive areas (the 20 percent) that give 80% of the results.

7. Figure out productive areas to strengthen the workflow

Figure out productive areas to strengthen the workflow

It is essential to track the productivity of your employees to implement the 80/20 rule for strengthening the workflow. You can calculate the productivity of your employees using various productivity tracking software tools like WorkStatus.

Such user activity monitoring software tools provide detailed reports and analysis to make your work easier in defining the productivity goals for your employees. It is the best way to uplift the low performers and appreciate those who are producing excellent results. This will ensure that they receive additional training, better opportunities, and salary hikes to improve overall productivity.

When you regularly measure the productivity of your employees, it will be easy for you to figure out the crucial areas (the 20%) that are contributing to the maximum (the 80%) growth of your business.

Also read: 9 Effective Task Management Strategies For Higher Productivity

How can WorkStatus help in implementing the 80/20 rule?


WorkStatus is an excellent employee monitoring software that provides intelligent time tracking, approvals, invoicing, remote status, and attendance reports. It combines performance monitoring – time tracking, objective-setting, and progressive discipline – with management analytics to generate data-driven insights.

It also visualizes workflow by seamlessly aggregating status updates from all members of a team. The system’s intuitive interface helps keep teams accountable for their work and fosters candid conversations about performance at every stage of the process.

Being the best employee tracking software, WorkStatus will automate all your tasks related to project management, project budgeting, productivity measurement, timesheets, reporting, etc. so that you can quickly identify and focus on the key areas (the 20%) of your business that is generating the maximum revenue (the 80%). With WorkStatus, you can get rid of all your cumbersome processes and enjoy working with the new-age software that’s built for today’s way of doing business.

Closing Thoughts

The 80/20 rule is an essential principle for any business to consider when looking at employees’ productivity. This article has discussed how you can apply this principle with examples, but if you still found it too confusing, then WorkStatus may be able to help out.

WorkStatus offers managers and team leaders a simple way to monitor employees’ productivity and measure their production output without burdening them with tedious spreadsheet work! If you’re ready to implement the Pareto Principle into your company culture, schedule a free demo today of the best remote employee monitoring software.

Well!! That’s it for today! If we forgot to mention anything important, please tell us in the comment section.

Thanks for reading!!


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