Employee productivity is one of the most important metrics in business performance today. How effectively employees leverage their skills and time toward achieving organizational goals determines any company’s success. But do you understand which factors influence that productivity?
As a manager, it’s your job to help employees work as efficiently as possible. To help, let’s explore the intricate relationship between employee productivity and the various factors you need to manage to enhance overall performance.
Why employee productivity is important
When employees get their work done more effectively in less time, and at higher quality levels, the result is reduced waste, lower overhead, higher profit margins and better customer service.
Beyond the benefits to the organization, focusing on removing barriers to productivity increases employee satisfaction and well-being. This leads to higher engagement, lower turnover, greater innovation and a broader talent pool.
By increasing employee productivity, organizations see:
- Increased profits: When employees complete more work in less time, the organization achieves greater profits by producing more products or having greater capacity to sign additional clients.
- Better performance management: As productivity increases, employees produce more high-quality work. This empowers you to set higher performance goals that challenge employees more. At the same time, many of the methods for increasing productivity contribute to more effective performance management systems as well.
- Higher employee engagement: People who are effective at work are more engaged with their organization. Employees feel less frustration at work and have more opportunities to be proud of what they achieve. According to Gallup, engaged employees mean 21% more profitability for the organizations where they work.
- Better customer outcomes: Customers benefit from increased productivity in several ways. More productive employees help customers in less time, allowing them to take on more requests so others aren’t left waiting in queues. These employees also provide a higher level of service to customers because they are more motivated and happy at their jobs.
- Greater job satisfaction: Productive employees may feel less stressed because they get done work without having to work overtime, leading to greater satisfaction and lower burnout.
- Improved employee retention and bigger talent pool: Employees who are productive and satisfied are less likely to look for another job. They’re also more likely to recommend their workplace to others. Companies with a good reputation have a larger pool of potential employees.
How to manage the biggest factors impacting productivity
Several factors affect employee productivity in both positive and negative ways. While some factors are internal to the organization and others are external, these strategies will help you manage them all.
1. Tools and technology
Organizations increasingly rely on technology to collaborate, communicate and get work done. However, many organizations implement technology without training employees to use it effectively or without fully understanding its impact. Even the right tool can impede productivity when it’s used ineffectively.
How to manage it: Train employees on how to use tools from day one. Audit all technology regularly to understand its effects on productivity, especially in the first few months of implementation. If you find a tool isn’t helping productivity, figure out if it’s because employees don’t know how to use it or because it’s not helpful. You may discover opportunities to reduce SaaS costs by getting rid of tools or switching to better alternatives.
2. Communication
Transparent communication across the organization is key to getting work done. With the right communication tools and policies, employees collaborate effectively, brainstorm innovative ideas and foster good relationships. Ineffective or inconsistent communication frustrates employees by leaving them feeling in the dark about goals, tasks or company initiatives.
How to manage it: Provide effective communication tools across the organization, including email, direct messaging, video conferencing and project management and collaboration tools. Create strong policies around when communication is necessary and appropriate to keep employees from becoming overwhelmed by unnecessary meetings, overly long emails or non-stop notifications.
3. Goals and expectations
To be productive, employees must have a clear understanding of their roles and responsibilities. When they can see how their individual work contributes to company-wide goals, they’ll be more motivated to complete their work. Employees also need to feel that their personal goals are important to the organization. When expectations are unclear, deadlines go unmet and employees become disengaged.
How to manage it: Set goals that are specific, measurable, achievable, relevant and time-bound (SMART) for individuals, teams and departments. Regularly measure these goals and communicate them across the company. Ensure HR leaders clearly define roles and responsibilities for each employee when they start working or if they receive a promotion.
4. Leadership
Employee productivity hinges on good leadership. Managers, supervisors and the C-suite must lead by example to model productive behavior. It’s also important to give clear direction and know how to support employees. Good leaders build strong relationships with their people through clear communication, consistency and supportive behaviors. Unprepared managers or leaders can discourage even the best employees.
How to manage it: Train managers and leaders regularly to prepare them for their roles. Create strong policies that support managers in creating supportive environments for more productive employees. Empower managers to communicate clearly, recognize accomplishments and set clear goals for their teams.
5. Engagement and culture
A strong company culture and high engagement levels lead to higher productivity by fostering motivation and a sense of belonging among employees. Employees who feel connected to their colleagues and their work are more productive overall. They’re also more creative and more likely to stay with the company long term.
How to manage it: Create an intentional, supportive company culture through feedback, recognition and rewards, open communication and continuous growth. Encourage employees to create strong bonds through social activities and shared goals. Clearly define and communicate the company’s mission, goals and values with employees. Respond to employee feedback by implementing new strategies or addressing issues with the organization.
6. Health and well-being
Mental and physical health are increasingly important to employee productivity, especially in our current era of high burnout. Employees who are able to put their well-being first perform better, not just because they’re well enough to do so but because they feel their organization cares about them as people. Companies that want more productive employees need to champion employees’ health, both physically and mentally.
How to manage it: Offer health benefits that include mental health, vision and dental concerns. Encourage employees to take breaks, whether it’s a daily 15-minute walk or paid time off. Provide wellness activities or benefits such as gym memberships. Empower managers to create an environment where employees can make decisions that improve their work-life balance.
7. Training and development
Employees become more productive through training, both in their current roles and for new responsibilities as they move into higher roles. In addition to the direct benefits of training, offering development opportunities shows employees you’re invested in them, which motivates them to give their best effort.
How to manage it: Use productivity monitoring tools to assess employee skills gaps or to identify underutilized employees. Offer comprehensive training for internal skills and encourage employees to seek training opportunities.
8. Incentives and recognition
Regular rewards and recognition increase motivation and job satisfaction among employees, which leads to greater productivity. When employees clearly see what good performance earns them, they're more motivated to perform. Regular recognition programs also build camaraderie and morale among employees who cheer each other on for their successes.
How to manage it: Create clear incentive programs, including pathways to promotions or increased pay, and communicate these programs with employees. Regularly announce achievements across the organization, whether they’re individual contributions or department-wide initiatives. Apply recognition consistently across departments and use data to show why and how employees earn bonuses, promotions or other incentives. Recognize personal milestones such as work anniversaries or when employees achieve goals.
9. Time management
Highly productive employees tend to have good time management skills. Organizations can encourage good time management by assigning reasonable workloads and offering employees opportunities to learn how to manage their time better. Employers can detract from good time management by interfering with employee workflows, such as by micromanaging or scheduling too many meetings.
How to manage it: Measure how much time employees spend on work tasks and set productivity expectations that align with these metrics. Balance workloads and ensure teams have enough time to do the amount of work expected of them. Empower employees with good time management skills to share tips with colleagues. Use productivity monitoring tools like ActivTrak to determine when employees are most productive, and leverage that data when scheduling meetings and other activities.
10. Work environment
Whether employees work from home or come into an office, the work environment greatly impacts overall productivity. Distractions including too much noise, interruptions from colleagues or even bad lighting detract from productivity.
How to manage it: Empower employees to create workspaces conducive to productivity, including ergonomic workstations and comfortable work environments. Provide remote employees with the tools, technology and equipment they need to create productive workspaces wherever they are. You can even offer flexible work arrangements so employees can work around personal needs, such as the option to stop in the middle of the day to pick up kids and then resume work once home.
Leverage ActivTrak to understand and manage factors that affect employee productivity
Understanding the factors affecting productivity is the first step towards boosting it. By managing these factors, you encourage activities that boost productivity — and discourage or adjust behaviors that detract from it.
Discover how ActivTrak's productivity management software can provide you with the visibility and insights you need to understand and manage these factors. Trusted by over 9,500 global brands, our software helps you improve productivity throughout your company. Request a demo to learn more and get started today.
