EMPLOYEE PRODUCTIVITY: How To Measure & Improve Productivity

employee productivity

Employee productivity has become a hot topic of conversation now that over 70% of the world works from home and many managers have had to adjust to leading remotely for the first time.
The truth is that enhancing employee productivity does not entail making your team members work longer hours. Employee productivity begins with your (the leader’s) level of involvement at work.
As a manager, you have the authority and responsibility to check in on your team members and provide them with the tools and best practices they require to perform at their best.
This post will teach you how to measure employee performance and increase employee productivity at work.

What is Employee Productivity?

The quantity of work an employee can complete in a given length of time is referred to as their productivity. It’s a basic assessment, but the factors that drive it are diverse and complex, ranging from the tools people use to how their employer fosters a success-oriented environment.

There will always be some variation in employee productivity. That isn’t always a terrible thing. After all, an employee who spends a long time on one excellent piece of work is just as useful as someone who can produce big volumes in a short period of time. Someone who solves problems in a warehouse will work at a different pace and with different goals than someone who works in an office.

Businesses can measure overall productivity on a corporate or team level, as well as look at each employee’s rate of output. Working on a bigger scale can assist business executives in ensuring that their teams have the correct mix of individuals.

What Factors Influence Employee Productivity?

No two employees are alike. Some of us are extremely productive, while others require more time to finish a task. One of the reasons that productivity levels differ within a team could be due to personality, working style, or ability – all of which are not necessarily under your control. However, there are some aspects that you may adjust to assist your employees to attain their full productivity potential.

These are some examples:

#1. Employee satisfaction

Are the team members in good health? Do they have a good work-life balance? Do they feel at ease and secure at work, and can they get the help and accommodations they require for things like illness, disability, or parental leave?

#2. Communication tools

How easy is it for people to communicate with one another? Are the corporate communication tools and channels that connect your team members simple to use, dependable, and of good quality? According to McKinsey, social technologies improve knowledge worker productivity by 20-25%.

#3. Management procedures

How involved is the team’s leader? What effect does this have on employee engagement? Are they personable and accessible, and do they work with people’s strengths to help them perform and develop? Organizations that wish to assist their teams and supervisors to succeed aim to help individuals emotionally invest in what they’re doing and fully utilize their skills.

#4. Equipment

Do employees have the proper tools for the job? Are they properly trained in the usage of those tools? Is their equipment user-friendly and of excellent quality, or does it necessitate extra time and effort on the part of the employee to get it to work properly?

#5. Training

Do employees know how to complete their regular activities and deal with common obstacles without stopping and asking for assistance? Do they receive adequate onboarding and continuous training to maintain their skills to date when they join the company?

What is the Best Way to Measure Employee Productivity?

Most managers have an intuitive sense of how much work their staff can complete in comparison to others. Some are speedier yet sloppier. Others are more detailed yet slower. Others, on the other hand, reach the zenith of employee productivity: Work that is both timely and of high quality.

To properly manage employee productivity, you must strike a balance between two factors:

  • Quantitative Elements
  • Qualitative Elements

One cannot exist without the other. You might define productivity as the total output divided by the total input, but you’d miss a lot along the way.

For example, an employee can be extraordinarily productive while also being quite difficult to work with – which isn’t always a benefit to the organization. There is also an opportunity for roles that are less productive but provide important responsibilities, such as long-term planning.

How To Increase Employee Productivity

Sustainable employees are more productive, which is excellent for business. That is why reporting on social sustainability is encouraged. It elevates HR to the top of the company agenda, garnering the attention of CEOs, work councils, boards, and investors.

While numerous factors influence employee productivity, employee sustainability is critical. Employees who feel supported and valued at work are more likely to be engaged and dedicated to their employer. Conversely, overworked or underappreciated employees are more prone to burnout and become less productive over time.

Here are some crucial things to remember:

#1. A pleasant working atmosphere

One of the most important variables that might improve employee productivity is a positive work environment. Employees who are at ease and pleased at work are more likely to be productive than those who are not.

Creating a happy work environment can entail a variety of activities, such as providing employees with the resources they require to complete their jobs, giving flexible work hours, and ensuring that the workplace is safe and hygienic. A high-performing team assumes a positive environment. It is not a requirement for performance, but rather a prerequisite. We also know that a poisonous culture is the primary cause of low retention” (cf. McKinsey).

#2. Employee Appreciation

Global thought leaders such as Jeremy Scrivens advocate for creating recognition cultures. It is everyone’s obligation to celebrate minor and huge victories, as well as the lessons learned from failure. Employee recognition fosters employee productivity. Employees are more inclined to continue going the additional mile when they feel rewarded for their efforts. They vary from quiet quitters in that they “only” do what is required of them.

There are numerous ways to convey employee appreciation, including extrinsic motivators such as bonuses, paid time off, or just informing them that they are doing a good job. Why not show trust by delegating authority to increase or investigate the ROI of the benefits portfolio you have? We anticipate that in their pursuit of a better employee experience, Generation Z will want more flexible remuneration and benefits packages.

#3. Education and training

Finally, we all want to be future-proof and find another career if we quit our current one. We anticipate making a profit when we sell our house. It is sustainable if our value decreases just by working there. How does each person learn something relevant for whatever comes next in their career? Employees are more likely to be engaged in their work and less likely to become bored (overqualified) or frustrated (unable) when they believe they are continually learning and growing on their job.

Furthermore, providing opportunities for training and development might help to recruit and retain top employees. Another criterion for high-performing teams is a high level of psychological safety: feeling included as well as safe to fail and/or challenge the status quo.
The emphasis is on on-the-job learning. Teaching others is the key to mastering a craft.
As previously said, do you encourage cross-company skill pools in flatter organizations?

#4. A clear purposeful purpose and a clear understanding of what is required

Employee productivity is higher when they are aware of the company’s purpose and objectives. This is due to the fact that they will understand what is expected of them and will be able to strive toward specified goals. Companies must properly convey its objective to all employees in order for everyone to be on the same page. Employees are increasingly looking for a meaningful purpose at work and how they may contribute to it.

#5. Regular feedback

Another key component is regular feedback. When employees receive regular feedback on their performance, they will be aware of the areas in which they need to improve and will be able to make changes accordingly.

Furthermore, regular feedback can aid in the development of trust between managers and employees. The best strategy to operationalize feedback is to allow cross-organizational teams to meet and engage in collaborative dialogues about relevant subjects. It promotes participation, learning, inclusion, and an overall understanding of how we all contribute to and rely on one another.

Tools and Resources that Assist Employees in Becoming More Effective

There are numerous tools and services available to assist employees in becoming more productive.

Aino’s SaaS is one such product that may be considered proactive maintenance of people’s well-being. We respond to stimuli that indicate future absence. Manage risks and capitalize on opportunities before these triggers result in actual sick absence and/or severe mishaps, all of which contribute to long-term sick leave.

This data-driven solution, by helping managers with best practice standards, may both detect the issue, provide notifications to managers, and guide them on how to remedy the issue in a methodical manner, enriching data to knowledge that leads to educated actions on an individual level. We detect early-stage human burnout in the same way that a fire detector detects early-stage fires.

This has a tremendous symbolic impact on employee productivity and sustainability. Other advantages include reduced sick absence and associated expenditures, enhanced working abilities and health, and reduced chances of premature retirement, which has a twofold materiality impact.

Implementing such a solution is quick and efficient because it simply requires pre-existing payroll data, and good effects will be visible within a few months.

Tips for Fostering a Productive Work Environment

#1. Establish clear expectations and mutual understanding

Setting clear expectations for your staff is one of the most critical things you can do to create a productive work environment. Make sure they understand your company’s policies and processes, as well as what is expected of them in terms of work performance. Setting clear expectations will assist your personnel in remaining focused and on target.

#2. Provide appropriate resources and authority to carry out the desired tasks.

Another important aspect of an effective work environment is providing appropriate resources to your employees. Check that they have the equipment and supplies they need to complete their duties, as well as access to the information they require. Furthermore, make your workspace comfortable and well-lit, as this might help to reduce stress and improve productivity.

#3. Promote collaborative communication within teams and across the organization.

Another crucial aspect of creating a productive work environment is to encourage communication. Encourage your staff to communicate their thoughts and concerns, and make them feel at ease doing so. Additionally, make yourself available to answer inquiries and handle issues as soon as possible. You can assist your staff to feel more involved and invested in their work by creating an open communication atmosphere.

#4. Encourage collaboration

Another important aspect of a productive work environment is the promotion of teamwork. Encourage your employees to collaborate on projects and encourage them to work together toward common goals. Additionally, ensure that everyone knows the significance of working together to achieve the company’s objectives. You can make your employees feel more connected to one another and to the firm as a whole by encouraging teamwork. Keep in mind that the team leader has a greater span of influence than the formal has a span of control.

#5. Recognize achievement

Finally, in order to foster a productive work atmosphere, it is critical to recognize achievement. Make time to thank your staff for their efforts and to recognize them when they hit milestones or complete assignments. Additionally, consider providing rewards for meeting or exceeding targets. Recognizing accomplishment will make your employees feel appreciated and driven.

Do You Need An Employee Productivity Plan?

While we strongly believe in the need of having a sound HR strategy, a people strategy, and (where applicable) an employee retention strategy, putting a comprehensive strategy in place for things that are simply common sense can be overkill.

Rather, ensure that your people strategy is designed in such a way that it promotes employee productivity, is centered on fundamental corporate values, and makes employees feel appreciated while also appropriately challenged.

Make sure that the tools you ask people to use are actually helping them rather than harming them.


The true motivators of employee productivity are employers. It all starts with recruiting correctly, which involves understanding your business goals and the types of people who will buy into them.

Businesses must establish a positive environment for their staff. Staff also want to understand their function, know that their contribution is valued, and know that they will receive the necessary training to succeed.

Money is important. However, career opportunities, additional benefits, open communication, and the potential to grow and contribute are all important.

C-suite executives and middle management must stay current on industry advancements and trends, as well as keep their staff informed. These are variables that contribute to increased productivity.

Finally, be renowned as a company that always keeps its promise, whether to customers, employees, suppliers, or anybody else. Relationships and trust are the foundations of company productivity.


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