Imagine your company is a car, and your productive employees are its engine. The better they perform their tasks, the faster and more confidently your "car" moves forward. Managers are always looking for ways to make this "engine" more powerful: from motivation and bonuses to creating a healthy and friendly work environment. Improving employee productivity is crucial in this regard.
If you're interested in learning how to measure employee productivity and what steps are needed to boost employee productivity several times over, read our article ⬇️
What is Employee Productivity in Simple Terms?
Employee productivity is their ability to complete tasks efficiently and with minimal time spent. For example, if John typically prepares reports in an hour but suddenly starts doing it in half the time while maintaining the same quality, this is a clear increase in his productivity.
The importance of employee productivity can be explained by the following reasons:
- Cost reduction: Productive employees complete more work in less time, which reduces labor costs.
- Increased profit: High productivity allows for more projects and operations to be completed, leading to increased company revenue.
- Resource optimization: Productivity helps use both human and material resources more efficiently, avoiding excessive time and cost consumption.
The Most Common Reasons for Productivity Decline in 2024
Productivity in the workplace depends on many factors. However, in all companies, there are several common reasons why employees may work less efficiently.
Multitasking. Attempting to perform multiple tasks at once often leads to decreased focus and an increase in errors. Employees switch between tasks, which slows down the workflow.
💼 Sarah, a sales manager, is simultaneously working on a client presentation, answering questions in the team chat, and trying to call potential clients. As a result, the presentation is incomplete, and important client calls are postponed. Consequently, she misses the presentation deadline and loses several clients.
Stress and Burnout. High workloads, constant pressure, and lack of rest can lead to emotional burnout, decreased motivation, and physical exhaustion, all of which negatively affect work efficiency.
😵💫 Michael, an IT specialist, is managing several large projects at once. He is constantly interrupted by other departments asking him to fix urgent issues. Because of this, he works 10 hours a day without breaks. After a couple of months, he begins to make mistakes in the code and misses deadlines. His projects get delayed, and the company loses money.
Lack of Clear Goals and Objectives. If employees do not understand what is expected of them or do not see the connection between their actions and the company's overall goals, they may lose motivation and work less effectively.
🧠 Lisa, a marketer, was assigned to "increase brand awareness." However, no specific steps were outlined, nor were the criteria for evaluating her work made clear. Lisa spent several weeks on ineffective ad campaigns because she didn’t know that the company wanted to focus on a particular product.
Poor Organization of the Work Process. Inefficient workflows, unclear instructions, or overly complicated procedures can slow down employees' work, causing confusion and delays.
🙇 Tom, an accountant, manually enters the company's expense data into several different systems every day. As a result, he spends half of his day on routine tasks that could be automated. Consequently, he has no time left to analyze financial metrics, and the company overlooks important financial risks.
Lack of Motivation and Recognition. When employees do not feel valued by the company, their motivation decreases. A lack of recognition and rewards for good performance can also reduce productivity.
😓 Jennifer, a project manager, completed a complex project with excellent results, reducing costs by 15%. However, the management gave her no feedback or thanks. Feeling underappreciated, Jennifer loses motivation, starts working more slowly, and avoids taking responsibility for new projects.
Lack of Necessary Training. A lack of knowledge and skills necessary to complete tasks reduces employees' confidence and leads to a decrease in the quality of their work, slowing down the process.
⏰ John, a graphic designer, was tasked with creating a new style for the company’s website. However, he was not trained in the new graphic editor that everyone in the company uses. John spends hours searching for information online and self-learning, which slows down his work on the project and decreases the quality of the design.
Communication Problems. A lack of transparent and open communication between employees and management can lead to misunderstandings and errors, reducing productivity.
📉 Bobby, a data analyst, doesn’t receive timely information from the sales team because they do not discuss their plans with him during regular meetings. By the time the important information finally arrives, Bobby doesn’t have enough time to update the report for management, and decisions about the company’s strategy are made based on outdated data.
Distractions in the Workplace. Frequent distractions, such as unnecessary calls, notifications, and personal conversations, can prevent employees from focusing on their tasks.
🙉 Jessica, a customer support specialist, works in an open-plan office. Her colleagues often discuss personal matters right next to her desk, and she constantly gets distracted from interacting with clients. As a result, customers are dissatisfied with the service because Jessica cannot concentrate and resolve their issues quickly.
Unfavorable Corporate Culture. If the company has a toxic atmosphere, lacks support from management or teams, employees may lose interest in their work and reduce productivity.
😔 In Sam's company, a junior product manager, the management always focuses on mistakes and never praises good results. Colleagues compete with each other instead of working as a team. Sam starts avoiding challenging tasks, fearing criticism, and his productivity drops.
Low Level of Automation. Manually performing tasks that could be automated takes up a lot of time and effort, reducing the overall efficiency of the team.
⏳ Lauren, an office manager, has to manually book conference rooms for meetings and check which rooms are available every day. If the office had an automated booking system with an interactive map, she could save hours of time. However, due to the lack of automation, Lauren spends several hours on a simple routine task, which prevents her from performing more important duties.
How to Understand That Your Employees Have Low Productivity
Companies often start paying attention to productivity only when results begin to deteriorate: business indicators decline, or managers note a lack of employee engagement. At such moments, the company starts looking for ways to improve team performance.
However, it's important to think about productivity in advance to prevent a decline in performance. Restoring lost efficiency takes more time and effort. Understanding the level of team productivity allows for better process management and timely action.
You can use multiple methods or focus on one — it all depends on your employees' work specifics. Each role is unique, and the main task of a manager is to consider these nuances and choose the appropriate method for measuring productivity ⬇️
KPIs are suitable for roles where results can be measured numerically, such as sales (calls made, deals closed, etc.).
Satisfaction assessment helps to understand how satisfied employees are with their tasks, working conditions, and management attitude. Surveys for satisfaction assessment are especially useful for improving workplace productivity and retaining key employees.
360-degree feedback is excellent for key positions like top managers or client managers. Colleagues may reveal that an employee who seems successful is actually easily distracted or underperforming.
📝 360-degree feedback is a method of employee assessment where information is gathered from all sides of their professional environment: managers, colleagues, subordinates, and clients. It's conducted through anonymous surveys and questionnaires where participants evaluate the employee's competencies, behavior, and results. The findings are then analyzed and discussed with the employee.
Tracking software, like Attrack, works well for employees who spend most of their time at a computer (IT specialists, designers).
Reports are ideal for roles where productivity isn't tied to numbers, such as HR or PR. Weekly reports help you see what has been done and how much time it took.
20 Ideas and Ways to Increase Workplace Productivity
1. Set Clear Goals and Expectations
When employees have clear goals and expectations, they know what to focus on and don’t waste time on unnecessary tasks. For example, instead of saying "increase sales," it's better to say: "increase the number of deals closed by 10% over the next month." This makes the goal specific and measurable.
Improving employee productivity by setting clear goals helps employees work faster and with higher quality because they know exactly what to do and how it will be measured.
⭐ Google uses the OKR (Objectives and Key Results) system to set clear goals. Each employee knows their tasks and expected results. This increases accountability and helps focus on priorities.
2. Optimize Processes with AI
Nowadays, it seems strange not to use AI for tasks that don’t require special skills. For example, AI can help with report writing, drafting meeting minutes, shortening and optimizing text, or preparing an email response. This saves time because employees don’t have to do it manually.
3. Use Internal Communication Software
Modern communication tools like Slack or Microsoft Teams help employees quickly find the necessary information and discuss projects in real-time. This reduces the time spent searching for data and minimizes the risk of misunderstandings.
4. Hold Regular Meetings
Weekly team meetings help discuss achievements, challenges, and goals for the coming week. This improves communication and helps solve problems quickly, preventing project delays. This practice is essential for improving employee productivity and keeping everyone aligned.
👀 One effective way to manage stress at work is the walking meeting method used by Steve Jobs. The Apple founder often held important meetings while walking. Walking outdoors stimulates creativity, improves focus, and provides a break from office chaos.
5. Provide Psychological Support
Employees with access to a psychologist or support program can handle work-related stress much more easily. For example, if an employee faces difficulties, they can seek help and receive recommendations on how to deal with emotional burnout.
6. Organize Hybrid Work Modes
Alternating between remote work and office work helps employees maintain a balance between personal and professional life. For example, employees can work two days a week from home and three days from the office, helping to reduce the stress of commuting.
Most commonly, hybrid office management systems are used to solve this issue. They help employees plan their office visits by marking when they’ll work from the office and when from home. These systems also allow employees to book a workstation for the day they plan to go to the office.
In hybrid office management systems like UnSpot, you can plan your schedule a month ahead, indicating office or home workdays, as well as business trips, vacations, or sick days.
7. Introduce Flexible Work Schedules
Allow employees to choose when and where they want to work, as long as it doesn't interfere with the overall goals. For example, one person may be more productive in the morning at the office, while another works better in the evening from home.
When employees can choose convenient times and places for work, they become less tired and work more efficiently. This improves work-life balance, positively impacting mood and productivity.
8. Develop Corporate Culture
A corporate culture that encourages support and collaboration helps employees feel like part of a team. For example, the company can organize regular events and meetings where employees share their successes and help each other solve problems. This strengthens the team and creates an atmosphere of trust.
🔔 Zappos has focused on a corporate culture based on ten key values, such as "Deliver WOW Through Service," "Embrace and Drive Change," and "Create Fun and A Little Weirdness." These values permeate all aspects of the company’s work. Hiring staff aligned with these values, investing in training, and promoting open communication have helped create a motivated and cohesive team.
9. Invest in Training and Development
When employees learn new skills, they feel confident that they can handle their tasks. For example, if the company offers courses on new software, employees will quickly master it and perform better. This improves the quality of work and reduces the likelihood of errors.
Organize training sessions once a quarter where employees can attend courses to improve their skills, such as learning about new technologies or office tools. Allow employees to choose courses that best match their professional interests and goals. A small bonus can be awarded to an employee for each course completion confirmation.
10. Regular Feedback
Consistent feedback helps employees feel they are on the right track. If a manager regularly checks their work and gives comments, the employee understands where they made mistakes and what can be improved. This reduces stress because the person knows their work is important, and they can always receive support rather than criticism.
💡 Short meetings can be held every Friday to discuss employees’ progress on current projects. It’s best to hold meetings with the entire team and do this on a regular basis.
11. Implement Reward and Bonus Systems
A reward system where employees receive bonuses for achieving certain goals motivates the team to work faster and more efficiently. For example, completing the sales plan within a month can earn a bonus or an extra day off. This increases motivation and helps focus on results.
12. Conduct Regular Engagement Surveys
Surveys help management understand what concerns employees. For example, a short anonymous survey can be conducted once a month via online platforms like Google Forms, asking how satisfied employees are with their work and what improvements can be made by management. This helps identify problems in time and prevent burnout.
13. Introduce Autonomy in the Workplace
When employees can make decisions on their own, they feel more responsible for their work. For example, a manager can choose their methods for achieving goals rather than following strict instructions. This boosts initiative and motivation, leading to more productive employees.
✏️ Amazon increased employee productivity by introducing the "Two-Pizza Team" principle. According to this principle, teams should be small enough to be fed by two pizzas, usually 5–7 people. Small autonomous teams speed up communication, decision-making, reduce bureaucracy, and increase each team member's accountability.
14. Create Growth Opportunities
When employees see that they have career growth opportunities, they work better. For example, if a programmer knows that after completing several large projects they can become a senior developer, they will be motivated to finish them faster and with higher quality.
15. Minimize Multitasking
Research shows that only a small percentage of people can successfully multitask. Most just switch between tasks, which reduces their concentration. For example, if an employee gets distracted by calls or emails while working on a report, their attention becomes scattered, slowing down the work. A clear and reasonable distribution of tasks throughout the day helps avoid overload and increases productivity.
✨ Warren Buffet uses a simple method to combat multitasking in his work. He recommends writing down all the tasks you want to complete, then highlighting the five most important ones. After that, focus only on the first task until it’s fully completed, temporarily putting the others aside.
16. Improve Working Conditions
Creating a comfortable workspace with ergonomic chairs, proper lighting, and zoning helps employees get less tired.
For example, dividing the office into zones for meetings, quiet work, rest, and team collaboration allows employees to choose the appropriate space to complete their tasks.
17. Engage Employees in Important Decisions
When employees are involved in making important decisions, they feel valued within the company. For example, invite employees to meetings where important projects are discussed, and give them the opportunity to contribute their ideas. In an office environment, this could be a meeting focused on improving employee productivity.
18. Introduce Team Building Programs
Regular team-building events help employees get to know each other better and improve collaboration within the team. When employees work in a cohesive team, they complete tasks faster and more efficiently.
✍️ The most common team-building formats
- Quests: Employees team up to solve various tasks and puzzles. This helps develop teamwork skills and improves communication.
- Sports Competitions: Organize team games such as football, volleyball, or relay races. These activities help strengthen connections among employees.
- Outdoor Picnics: In an informal setting in nature, employees can get to know each other better, communicating in a relaxed atmosphere.
- Board Games: Office tournaments in board games help build team spirit and increase engagement.
19. Reduce Routine Tasks
Automating or delegating routine tasks, such as data entry or generating standard reports, allows employees to focus on more important tasks. This helps complete larger projects faster and boosts overall productivity.
20. Implement Employee Recognition Programs
When employees are thanked for good work or rewarded, it lifts their spirits and motivates them to keep striving. This doesn’t necessarily have to be a monetary reward — it can be as simple as public recognition in a meeting or a message in a corporate chat. Such programs help employees feel valued by the company, leading to more productive employees.
🚀 You can assign different tasks points based on their difficulty, and the department that completes the task will receive those points. Once a month, you can hold an awards ceremony in the office for the three departments that earned the most points in total.
Summary of Factors Affecting Employee Productivity
In today's work environment, employee productivity is a key factor in a company's success. If employees perform their tasks efficiently, the company moves towards its goals faster and with fewer resources. Here’s what is important to consider:
- Clear goals and expectations. When employees have clear tasks and objectives, their work becomes more efficient.
- Regular feedback. Frequent feedback helps employees stay on track and adjust their work as needed.
- Recognition and motivation. Encouragement and appreciation motivate employees and make their work more productive.
- Development and training. Investments in training help employees improve their skills, which directly impacts the quality of their work.
- Process optimization. Utilizing technologies to automate routine tasks saves time and reduces the likelihood of errors.
- Support and culture. A friendly corporate culture and psychological support reduce stress and burnout, improving employee productivity.
By applying these methods, you can significantly increase workplace productivity in your company and make the work process more efficient.
