We study the combined effects of measurements and unitary evolution on the preparation of spin squeezing in an ensemble of atoms interacting with a single electromagnetic field mode inside a cavity. We derive simple criteria that determine the conditions at which measurement based entanglement generation overperforms unitary protocols. We include all relevant sources of decoherence and study both their effect on the optimal spin squeezing and the overall size of the measurement noise, which limits the dynamical range of quantum-enhanced phase measurements. Our conclusions are relevant for state-of-the-art atomic clocks that aim to operate below the standard quantum limit. Published by the American Physical Society 2024
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