Organizations today are constantly trying to find ways to improve employee productivity while lowering operational costs. Improving productivity for your workers can mean big cost reductions, which is the basic concept of productivity savings. To get productivity savings, your organization must identify and fix inefficient workflows and processes without sacrificing quality.
In this article, we’ll dig deeper into strategies to understand and harness productivity savings to create business cost reduction, including effective techniques to enhance productivity.
What are productivity savings?
Productivity savings are the cost savings associated with improving the productivity of a workforce. One of the biggest contributors to productivity savings is identifying inefficiencies within current workflows and processes. Organizations can also improve productivity savings by monitoring how employees use tools and technology to ensure they’re not wasting money on unnecessary or difficult technology. Leaders and managers can also use productivity data to make decisions on headcount, office space and other elements of the workplace that can cut costs and waste. Another important element in creating productivity savings is enhancing employee engagement and morale through well-being programs, training and development and feedback.
How do productivity savings reduce business costs?
Improving productivity allows your organization to produce more with fewer wasted resources. This means higher revenue from both increased employee output and less overall waste. For example, by automating repetitive tasks like timesheets, expense reports or data analysis, employers give workers more time for important tasks like creative work or collaboration. This means employees feel more invested in their work and get more work done that contributes to the bottom line.
When employers remove barriers to productivity, they tend to see improved performance and higher quality of work. This leads to improved customer satisfaction, which also increases revenue and the company’s overall reputation.
Improving productivity and employee wellness also go hand-in-hand to reduce costs. When employees are more satisfied with their work, they produce higher product quality, which not only means increased revenue but reduced costs in terms of redoing or correcting issues. Employees with higher job satisfaction are also more likely to stay with the company long term, saving money in hiring and training.
Reducing burnout and employee stress improves productivity for teams and reduces costs associated with employee absenteeism like assigning missed work or delayed deadlines. Creating a positive work environment by enhancing productivity creates positive impacts across the company and provides a clear return on investment.
7 ways to achieve productivity savings
Productivity savings create value for companies through reduced waste, increased output and improved company culture. Below we share a few ways to generate productivity savings at any organization.
1. Use productivity management software
Productivity management software like ActivTrak helps you spot factors that impact productivity both positively and negatively, so you can implement changes to improve it or reinforce positive factors. For example, understanding when employees are most productive gives managers insight into when they should schedule meetings to reduce distractions during peak creativity hours.
These insights also show which technology or tools help or hamper employee work to determine if they produce productivity gains or a productivity cost. Additionally, when employees understand their individual productivity flows, they can make informed decisions on prioritizing their schedules to manage their time effectively.
2. Streamline workflows
Inefficient workflows are a drain on productivity, and overhauling these workflows to remove unnecessary steps or bottlenecks improves productivity across the board. Workflow optimization should be a priority for any company seeking better productivity, collaboration and work quality. To improve workflows, use project management software, process improvement techniques and data analysis tools to fix processes that inhibit productivity.
3. Leverage technology
Outdated technology, lackluster tools or inefficient use of technology inhibit productivity. Make sure employees not only have the right technology, but know how to use it. Remote work has spurred advancements in communication and collaboration tools that any organization can leverage, and artificial intelligence (AI) tools can streamline workflows and automate tasks.
It’s not enough to introduce the latest technology to your team, though. It’s important to ensure they know how to use it properly to avoid wasting money on a tech stack you don’t use.
4. Provide regular training
Underskilled employees hold companies back and a lack of knowledge contributes to work frustration for individuals. Beyond basic training during onboarding, companies should provide continuous improvement opportunities for employees to become better at their jobs and develop throughout their careers. Training and development opportunities increase employee skills, job satisfaction and confidence, which all lead to improved productivity.
5. Prioritize well-being
Burnout costs workplaces billions of dollars every year in lost productivity, turnover and healthcare costs. It also increases the risk of absenteeism and safety incidents. A recent study found burnout costs employers $21,000 per employee, which adds up quickly with a higher number of employees.
Prevention is key when it comes to burnout, and companies should prioritize employee well-being through organization-wide programs like healthcare benefits and paid time off as well as balancing workloads and encouraging employees to take frequent breaks.
6. Recognize and reward achievements
Employers that take the time to celebrate achievements and reflect on success give their employees a greater sense of purpose and belonging in the workplace. From celebrating major projects to recognizing individual accomplishments, recognizing and rewarding employees improves morale and productivity.
7. Commit to adaptation
Workplaces today change often thanks to new technology and employee attitudes. To generate and sustain productivity savings, employers must be willing to adapt. Organizations should create ways to get feedback from employees on new initiatives to generate buy-in and ensure changes have a positive impact. Leaders should use data to monitor trends in productivity and make changes when necessary.
Identify and capitalize on productivity saving opportunities with ActivTrak
Productivity savings are a powerful driver to reduce business costs and enhance organizational effectiveness. Organizations that focus on understanding and optimizing workflows, leveraging technology, investing in employee development and fostering innovation achieve significant savings. Measuring and celebrating successes are also vital for maintaining momentum.
Transform your organization’s productivity through ActivTrak’s productivity management solution. Leverage our comprehensive workforce analytics platform to get deep insights into how work gets done so you can make informed decisions and optimize outcomes. With ActivTrak, you can effectively manage hybrid and remote teams, monitor and measure employee productivity, prevent burnout and much more.
Join the 9,500+ customers who trust ActivTrak to enhance their business operations. Contact our sales team today to create your free account and start your journey toward sustainable productivity savings and financial prosperity.
