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How to Improve Organizational Productivity

Take a look at what it means to increase organizational productivity and different strategies to do so.

ActivTrak

By ActivTrak

A small group being productive together.

Take brain breaks. Get adequate sleep. Eliminate distractions. Delegate. Avoid multitasking.

These are just a few of the most popular strategies experts tout to anyone looking to become more productive at work. 

But what if you want to enhance productivity levels at the organizational level? Is it possible to make hundreds or even thousands of employees more productive, all at the same time?

The short answer is “yes,” though the strategies look different. Let’s take a look at them now, along with what it means to increase organizational productivity.

What is organizational productivity?

Organizational productivity is a measurement of how efficiently a company achieves business goals. It looks at what the organization accomplishes compared to how many resources it takes to reach each milestone. Think of it as a simple ratio: How much input (such as time, labor and materials) goes into achieving your desired output (such as completing a project or introducing a new service).

Organizational productivity is driven by a number of factors, from job satisfaction and happiness at work to technology and company culture, and goes beyond individuals and teams to encompass cross-departmental collaboration

Why is organizational productivity important?

Organizational productivity is one of the best ways to gain (and maintain) a competitive edge. Studies have long shown companies with high-performance teams are more profitable and experience lower turnover. And since high productivity means doing more with less, highly productive organizations tend to have lower operational expenses, too.

As one work consultant puts it, when people aren’t performing their best, “you’re still paying their salary and benefits — essentially funding an underwhelming return on your investment.” At the same time, businesses lose a staggering $37 billion each year to unproductive meetings.

But find ways to boost organizational productivity, and a much different story emerges. According to Gallup, companies with high levels of employee engagement — a key predictor of productivity — are 21% more profitable than those without.

In other words…

Increasing organizational productivity is a top priority for any organization looking to boost revenue, reduce costs, improve product quality and enhance customer satisfaction.

11 ways to improve organizational productivity

Increased productivity doesn’t happen by chance. You have to work at it. And based on the productivity metrics tracked across 9,500 organizations using ActivTrak, the following eleven strategies are a great place to start.

1. Measure productivity

You can’t improve what you don’t measure, and productivity is no exception. Start by adopting productivity management software designed to track and analyze key metrics for you. For example, more than 9,500 organizations currently use ActivTrak’s productivity management software to see how much time people spend on productive activities versus distractions. This software also allows managers to identify and address specific barriers to productivity, such as unevenly distributed workloads or overutilized employees who are at risk of burnout.

2. Automate repetitive work

Here’s a troubling stat: Despite the latest technology advancements, more than 40% of employees spend at least a quarter of their work week on repetitive tasks. Which is a shame, since automation allows companies to improve production in ways that weren’t possible a mere decade ago. From project management tools to workflow automation, options abound. If you need to boost productivity quickly, this is a great place to start. Look for tools that make it easy to put routine tasks on autopilot. This instantly frees employees across the organization to spend more time on high-value work.

3. Evaluate your work environment

Did you know 73% of surveyed workers believe company culture impacts the quality of their work? That means creating the right work environment is a surefire way to increase employee productivity across your organization. For remote teams, that means providing the right technology and equipment. For on-site and hybrid workers, consider flexible schedules that allow people to work when and where they’re most productive. The best environment varies from company to company, so start by asking your teams what they need to feel supported.

4. Offer flexible schedules

If you’re still on the fence about flexible work arrangements, consider this: More than 60% of workers say having the flexibility to work when and how they want makes them feel more empowered. It’s also one of the best steps business leaders can take to increase organizational productivity. But you don’t have to stay limited to remote and hybrid work schedules. The four-day workweek, flextime and results-only work are all viable models to consider.

5. Create a culture of learning and development

Don’t overlook the power of professional development. In addition to increasing retention — 94% of workers will stay longer at a company that invests in learning — it leads to many long-term gains. For starters, it costs up to twice an employee’s annual salary to find a replacement. More importantly, upskilling current employees benefits the organization at large, equipping people to take on more responsibilities and generate new ideas for the business.

6. Promote communication and collaboration

When it comes to increasing organizational productivity, effective communication is key. The better teams communicate, the better positioned they’ll be to share ideas, information and feedback — the kind that helps the entire organization reach more goals, faster. Taking steps to boost cross-team collaboration, whether by creating policies or investing in the right technology, is the best way to achieve this.

7. Reduce distractions

Constant pings and notifications don’t just take away from important work. They cost the entire organization as deadlines get pushed back and projects stall. These and other work distractions are among the biggest enemies of organizational productivity. Start by eliminating unnecessary meetings. Then look for common distractions and put policies in place to reduce them. This might mean giving people more time to work from home where it’s quiet, or encouraging employees to block calendars when they need to focus on important projects. The key is to find out what’s blocking productivity across your organization and taking steps to address each specific barrier.

8. Increase employee recognition

Another excellent way to boost organizational productivity? Show people you appreciate the work they do. It may sound simple, but this one move alone goes a long way in increasing performance. In fact, an astounding 79% of employees who quit their jobs cite a lack of appreciation as a major reason for leaving. By fostering a culture of recognition, you also boost morale, reduce turnover and elevate the customer experience. 

9. Evaluate your technology

How many apps does your organization pay for? If you’re like most companies, that number is somewhere in the range of 300 — give or take a few. But more technology doesn’t always mean more productivity. In many instances, it harms it. For example, 77% of surveyed employees say some AI tools add to their workloads and create challenges in achieving anticipated productivity gains. Make sure you’re only paying for the technology your teams actually need to be as productive as possible. Best way to do that? Create a SaaS spend management plan to ensure each app is worth the time and investment.

10. Solicit consistent feedback and coaching

Studies show organizations perform 88% better when employees feel heard and have a sense of belonging. By giving team members ample opportunity to provide feedback — and more importantly, by acting on that feedback — you send the message their input matters. And don’t overlook the role of individual productivity. Seven in ten employees who receive coaching report improved work performance and communication skills. When you encourage managers to spend this one-on-one time with team members, the entire organization benefits.

11. Set specific expectations

To boost productivity at the organizational level, clear expectations are a must. Without highly specific objectives, teams will guess at what the company is trying to achieve. They’ll also lack incentives for staying on time and meeting deadlines. Communicate your productivity goals clearly and often. For example, do you want teams to spend less time in meetings and devote more hours to moving projects forward? Set a benchmark for how many hours of meetings a week is acceptable. The more specific, the better.

Measure organization productivity with ActivTrak

Ready to unlock the full potential of your organization's productivity? ActivTrak’s productivity management software provides deep insights into how work gets done, empowering you to make informed decisions. More than 9,500 organizations currently use it to manage hybrid and remote workforces, monitor and measure employee productivity and enhance engagement to prevent burnout.

Take the first step toward realizing your team's full potential by contacting our sales team to learn more. Or get started right away with a free account.

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ActivTrak

ActivTrak helps organizations make data-driven decisions to improve hybrid work. Our workforce analytics platform provides visibility that improves team productivity and performance, ensures compliance with policies and expectations, and informs allocation of wo... Read more

ActivTrak helps organizations make data-driven decisions to improve hybrid work. Our workforce analytics platform provides visibility that improves team productivity and performance, ensures compliance with policies and expectations, and informs allocation of workforce investments.

 

More than 9,500 customers trust ActivTrak’s unique privacy-first approach and award-winning technology which has been recognized by the Deloitte Technology Fast 500, Inc. 5000 and G2 ‘Best Of’ category awards. ActivTrak is backed by Elsewhere Partners and Sapphire Ventures.

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