Senior Writer: Priya Naha
Summary: A good employee productivity rate leads to better conversions and sales for businesses. However, increasing the employee productivity rate is not a cakewalk. The blog focuses on some critical points for escalating employee productivity. You’ll also learn about the importance of employee productivity, how to measure employee productivity, how to increase and improve employee productivity in an organization, and how SaaS tools play a role in enhancing productivity .
Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.
-Paul J. Meyer
Productive employees are assets to successful businesses. Employee productivity is what an organization seeks to improve the work environment! Greater productivity equals greater profits and gives businesses a competitive advantage.
Whether you work remotely or from the office, employee productivity has its say everywhere. And today, remote work culture organizations are head-on with enhancing employee productivity. But, before we move on to how companies can enhance employee productivity or , we need to understand what it is!
This blog will take you on an exploring journey of employee productivity, ways to calculate employee productivity and how to improve productivity in the workplace.
Get ready with your eyeglasses. Here we go!
What is Employee Productivity?
Employee productivity is the clever work you do and not the hard work! It is the assessment of employee performance or a team’s efficiency. An employee’s productivity is measured by the number of qualitative tasks completed in a given time. Precisely, it measures an individual employee’s outcome during work hours.
For example, a company that produces perfume bottles will want to know how many perfume bottles an employee can manufacture in a specific period- this number is the individual employee’s outcome.
A tip: Productivity of employees and workforce productivity is not synonymous. If you talk about workforce productivity, it is the measure of the efficiency of a company’s production process. It is calculated by measuring the net sale of a company relative to employee labor hours.
Always remember that certain factors affect employee productivity. Employee productivity depends on motivation, interest, employee engagement, and job satisfaction. So, it is the responsibility of an organization to introduce tactics that encourage employees and boost productivity.
The Importance of Employee Productivity
What’s the main aim of an organization? It is to get better leads and sales. And how will employees get better leads and sales if they have poor employee productivity?
So, higher productivity levels play a crucial role for businesses. It’s just like a diamond. The more you polish it, the better it gets!
You must be clear that employee productivity can make or break your company. It is not something available in an employee handbook, but something employees must always remember.
If you improve productivity, it is to your benefit. But, if your team’s employee productivity wavers, results will not be pleasing.
And an organization’s productivity depends on employee performance. So, organizations must look after the company’s culture, mental health wellness program, employee morale, and employee well-being factors.
Boosting employee productivity is essential because with a boost in overall productivity, the business –
When employees are productive, they bring in qualitative results. And with qualitative results, a business is compelled to grow.
2. Becomes more profitable
When businesses expand, you’ll see recurring profit results. However, without productive employees, profit in a business is only a dream. So, for better profits, boosting employee productivity is a must.
3. Remains competitive
Your business has numerous competitors. However, will you be able to stand in the competition with frustrated and tired employees?
Of course not! Boosting employee productivity helps businesses remain competitive.
4. Meets Customer’s demand
If you keep your employees happy, they’ll keep your customers happy. Boosting employees productivity will also boost your customer experience.
Higher productivity, in short, ensures that your company stands out in the market.
A productive workforce is a must for positive company
culture and business growth.
How to Measure Employee Productivity in 6 steps?
To measure employee’s productivity in the workplace, the first thing you need is a set standard. Measuring employee productivity levels can be done in the following ways:
1. Measure the Goals Met
High productivity = High number of goals met
How to measure productivity?
Determine the number of goals your employees need to reach per month and then compare the monthly results with this number.
2. Measure the Number of Sales
High productivity = High number of sales
How to measure productivity levels?
Determine the number of sales your individual employee needs to make per month and then compare the monthly results with this number.
For example, you decide that every individual employee needs to make 150 calls per month, 30 contacts, and 15 sales.
If an employee makes 170 calls but only ten sales, the employee is not reaching the standard. However, if an employee makes 130 calls but 20 sales, the employee is beating the average.
3. Measure the Completed Amount of Work
High productivity = High Number of Completed Tasks
How to measure employee productivity?
Measuring productivity isn’t that complex.
Here, all you need to do is determine the employees work completion in numbers per week. Then, you need to compare the monthly employees work with this number.
4. Measure the Time Spent
High productivity = Shorter time spent working on a project
How to measure employee productivity?
Set estimates for the work hours the employees take to finish all your project-related tasks and provide the client with a deadline based on that estimate.
Instruct the entire team to measure productivity by using time tracking software. If your employees finish before the deadline, your team’s productivity is top-notch!
And if not, it is essential to improve the productivity of employees.
5. Measure the Completed Qualitative Work
High productivity = Quality work
How to measure employee productivity?
Determine the parameters of quality and completed project. Then determine how many tasks live up to that parameter.
For example, while employees develop an app in an organization, the project is considered a success when the app is functional and fulfills the client’s requirements.
6. Measure the Profit Margin
High productivity = High profit
How to measure the employee’s productivity?
Define the ideal final profit of your company. Your productivity is proven if your entire team reaches or tops it.But, if you fall short, it means that you have lost productivity and there must be improvements in your employee’s performance, and you need to promote productivity in the workplace.
How to Increase Productivity in the Workplace?
Various factors affect productivity in the workplace. But, how to increase employee productivity is the real question. Business leaders don’t always need to offer big raises or promise significant incentives.
In fact, there are some better and more engaging ways to make employees productive in the workplace. For escalating employee productivity, we’ve some of the best tips. Here’s what you need to do!
1. Improve Workplace Scenario
Improving employee productivity is highly synonymous with an increase in workforce productivity. The work environment plays a crucial role in influencing employee performance, actions, and mental health. This is especially true in the case of remote employees. A recent study revealed that 46% of remote employees have noticed an increase in their productivity ever since they started working from coworking spaces. If you want to improve employee productivity, ensure that their workplace is in optimal condition.
- Natural light in the office is a must– Reports state that employees who work in an office with natural light and windows sleep forty-six minutes more at night. This ensures that they rest more and are more likely to focus on more. And, the more rest, the more productive employees.
- Go Green- Introduce plant life in the office. Green offices make the working environment fresh and make the employees more comfortable. And with comfort comes greater productivity.
- White walls aren’t always a good option– Rather than white, opt for colors like red, green, or blue. Red helps with detailed-oriented tasks; green motivates, and blue boosts creativity. Give it a try and you’ll see improvements in the productivity of employees.
2. Optimize Meetings
According to reports, employees spend eighty-seven hours per month on various meetings! And it amounts to $37 billion lost yearly as many meetings become unproductive conversations and discussions.
So, what can help?
- Email– Replace meetings with email instead. Boost productivity by sending emails, as it is a much more precise and faster way to communicate effectively.
- Reduce the number of meetings- Hold only important meetings.
- Reduce the number of attendees– Conduct meetings with employees who are vital for the discussion. The other employees who aren’t needed in the forum mustn’t be obliged to attend it every time. Instead, make them continue their everyday work to improve the productivity of employees.
- Reduce the time– A ten-twenty minutes meeting is enough to cover the crucial points.
3. Optimize Emailing
If you are still wondering how to improve productivity in the workplace or how to increase the productivity or of employee with emails, we’re here for you.
According to various studies, it is claimed that we spend thirteen hours per week on emails! If you multiply that by the number of employees in a company, you’ll get the exact hours you could spend productively.
To optimize emails, make sure you follow these two points:
- Keep emails short and precise- Ensure your employees are polite while writing the mail. Moreover, it is necessary to be exact with the questions and on point with the answers. Beating around the bush or exaggerating is never a good option for emails.
- Block time just for emails– Let your employees select a time window every day while dealing with emails. And, make sure to stick to the time. For example, perform all email communication one hour before lunch break or one hour before you leave work.
- Do not mail employees at odd hours– Late-night emails are a big no as they may stress the employees and increase their anxiety levels. An organization must ensure they know what employees feel about late-night emails as such a step impacts employee efficiency the next day.
4. Provide Employee Training
Give your employees exceptional training. Train them on concepts that are essential for the organization and their own future.
As an organization, your team’s productivity improvement must be your goal.
- Use Better Software– There are various learning management software available in the market. Choose the employee training module that suits your business needs. Make sure the old and new employees learn and upskill their knowledge. Employees additional skills will benefit them and bring good results for the organization. Employers must give training to new employees and each team member. Choose an LMS that also offers statistics and analytics to ensure steady progress.
- Provide Hands-on Training– Let the employees test the efficacy of training tasks by encouraging employees with hands-on training. Such training will help them learn better and improve employee efficiency.
- Let Employees Learn at Their Own Pace– The one-size-fits-all learning has dated. Today, employees feel that learning at their own pace is the best option for better understanding. So, it is best to leave the employees to process their extensive training.
5. Allow Flexible Schedules
Everyone has different time schedules during the day. If someone’s productivity is at par in the day, some may have their productive prime time at night.
So, a tight 9-to-5 schedule or working at the earliest hours may not work for all employees.
Flexible schedules, therefore, are the best option.
- Allow remote work– 97% of employees do not want to work from the office full time. In fact, 61% of employees prefer entirely remote work. During the hiring process and employee onboarding process, employers must clarify the positions eligible for remote work. After that, the new team members must be made aware of the availability hours and specific response times. The organization must also instruct employees to punch in their in/out time to create real-time productivity reports.
- Allow flexible work hours-Instead of an entire 8-hour schedule, make the remote workers work in small blocks that make eight hours together. For example, let them log in from 8 am to 2 pm, freshen themselves up, get lunch breaks, and finish their work day from 4 pm to 6 pm. It will enhance productivity and their mental health. The time spent during the break will re-energize them for the second half.
6. Improve Communication in the Office
The importance of productivity can be understood when there isn’t seamless communication in the workplace.
Good team collaboration leads to encouraging employees to be productive and efficient.
- Build teamwork with a plan– Employee productivity-rich teamwork doesn’t happen coincidentally. And one employee or some of your most valuable employees alone cannot make a productive team. An efficient team works when all engaged employees ensure to work it out with the team. Plan get-togethers, initiate employee outings, and organize team-building virtual meetings. Boosting employee morale when a new member arrives on the team also lays a stepping stone in building teamwork.
- Find the right way to communicate– Finding the right communication tool to communicate with your remote workers is a must. You may have an office communication tool, but you’ll need to remember how each employee replies best. While some may be best at responding to Slack messages, some are prompt in answering calls.
How to Improve Employee Productivity in an Organization?
If you are still wondering how to improve employee productivity in the workplace, let’s tell you. Employee engagement is the real deal to improving employee productivity.
So let’s look at ways to boost employee productivity in an organization:
1. Provide Technology to Employees
In this high-tech world, if you are not giving the right SaaS tools to your employees, you are lagging. Appropriate technology will keep the employees less frustrated and more productive.
Employee productivity is a must for the organization because of the more productive the team, the better sales. With the rise of cloud computing and mobile devices, getting employees advanced technology is not an issue anymore. It eliminates capital costs and provides access to data and information.
Giving your employees the appropriate SaaS tools they need is a great way to improve employee productivity.
2. Provide Learning Opportunities
Do you know that learning never stops? And it’s always true for employees who want to do better. Offering learning opportunities is a great thing to boost employee productivity. According to a study, there’s a healthy relationship between an increase in employee productivity and access to education.
Organizations can also offer cross-training and employee development programs to improve and increase employee productivity.
3. Align Goals with Performance
Improve employees’ productivity by putting them in a position to aim for achievable goals. Setting goals helps employees build confidence and self-motivate in their ability to succeed.
Once employees can identify the goals, they are compelled to follow an organized performance analysis system and take ownership. You can drive better productivity and performance in your organization by setting meaningful goals. Such goals will motivate employees to collaborate and work as a team.
4. Highlight Company Culture
Several prime elements make up a company’s culture. It comprises everything from the work environment to the company’s goals and ethics.
Organizations that emphasize work relationships and reward teamwork are steps ahead in boosting employee productivity.
How to Increase Employee Productivity?
If your organization is looking for multiple ways to motivate employees to take responsibility for the company’s overall growth by promoting productivity in the workplace, encourage employees to use SaaS tools.
SaaS tools help in:
- Accomplishing more tasks in less time
- Allowing increased collaboration
- Boosting conversions and improving customer satisfaction
- Reducing costs
- Automating multiple tasks
How to Increase Productivity of Employees in a Business?
Learning how to increase productivity of employees starts with the right leadership techniques and tools. While choosing the right mentor is your choice, choosing the right SaaS tools is your company’s responsibility. With the appropriate SaaS management software, businesses can increase employee productivity.
But do you know how exactly SaaS management software help employees increase their productivity? Let’s take a look.
1. Access to Flexible Variety of Applications
You can improve your employee experience by providing them visibility into every business-approved application at their disposal. Give your employees the full-sighted freedom to choose from a myriad of SaaS applications and a simple way to acquire cloud-based tools. Introduce a centralized application directory to meet the goals as an essential piece of enterprise IT architecture.
With an app catalog, employees can explore a curated selection of business purchased, pre-vetted SaaS tools and streamline access requests. Ensure that you give your employees a comprehensive view of available SaaS applications. Without it, employees will waste their time figuring out if another employee within the company has already paid for the same software or tracking down the owner of an existing SaaS license.
SaaS software eliminates overlapping and redundant applications and presents employees with a list of best-in-class tools that reduce IT workload. This, in turn, empowers businesses to self-manage applications and collaborate with other employees across the company using shared applications. And, what does that do? It improves employee productivity across the board.
2. Measure Adoption and Usage Regularly
How will you determine if your selected SaaS applications represent your business’s objectives? It is impossible to know whether employees use and value the application without monitoring SaaS application utilization.
Many applications track license-specific utilization data through a dedicated metrics dashboard. However, it is time-consuming and challenging for large enterprises to measure SaaS application usage manually. With single sign-on systems, employees can access SaaS utilization. However, employees need to use single sign-on methods.
So, find a SaaS management platform that integrates into mission-critical applications like your product management applications, CRM, web conferencing, and office suits.
3. Make Use of Application and Architecture Rationalization
Along with calculating utilization, ask the following questions regarding which SaaS applications to eliminate and which to keep in the stack:
- Does the application have economic relevance for my organization?
- Does it improve or hinder employee productivity?
- Do the other applications serve the same purpose?
- Does the application fit into the technology portfolio?
- Does the application easily integrate with other technology?
Application rationalization is when you decide which software services must remain in use and which must be replaced, consolidated, or retired.
Use the right SaaS management platform to improve enterprise architecture and inform IT internal management.
Such transparency gained through application rationalization enhances a company’s decision-making and leads to an effective architecture.
4. Optimize SaaS Portfolio to Improve Employee Productivity
The Chief Information Officer’s (CIO) role continues to evolve in the modern scenario. So, they must adapt and learn the best ways to serve a digital workforce.
To boost employee productivity and boost performance, optimizing the technology portfolio through a simple SaaS management process is a crucial step for CIOs developing an enterprise. When you measure each app’s effectiveness for employees after eliminating the redundant SaaS applications, you see improvement in employee experience and substantial savings.
If you replace duplicate software with a single cloud storage organization to serve the entire organization, employees won’t just appreciate your effort, but it will also improve employee productivity.
How Can ControlHippo Help in This?
ControlHippo is a SaaS management software application that can save your spending and improve employee productivity by reducing SaaS wastage. With ControlHippo, you can:
1. Automate IT Tasks
Automating IT processes and repetitive tasks is one of the best ways to boost employee productivity and efficiency.
You can cut down on time executing tedious tasks using automation technology. This gives you more time to do other vital activities and help your business.
2. Track SaaS Usage
Companies can track all the work and usage. The tracking feature ensures that nothing goes underutilized, unused, or wasted.
3. Gain Complete Visibility
With frictionless monitoring, you can monitor all your SaaS applications and uses without hindrance.
4. SaaS Compliance
You can work in full compliance with the Cloud standards and SaaS regulations.
5. Easy Onboarding
Automated IT tasks offer seamless onboarding and give access to all applications together.
6. Seamless Offboarding
Users can revoke apps with a single click, making offboarding as smooth as a cakewalk.
Employee productivity is essential to make businesses successful in the long run. However, ensuring that your employees are productive during work hours is the company’s duty.
High incentives and better appraisals aren’t the only ways to boost employee productivity. The above analysis highlights some of the best ways to improve employee productivity.
Frequently Asked Questions
Four factors for increasing productivity include:
- Good working conditions
- Available input supplies
- Efficient Teamwork
- Appropriate tools and equipment
The three ways for increasing productivity are:
- Set small objectives
- Review goals daily
- Minimize time-wasting activities
The five main factors affecting productivity are:
- Work environment
- Technology and production factors
- Pay structure
- Training and career development opportunities
Lack of productivity can happen due to the following factors:
- Ineffective supervision and management
- Lack of employee training
- Ineffective organizational structure
- Toxic workplace behavior
- Workplace stress
Some techniques to improve productivity include:
- Track time for different projects and tasks
- Take breaks
- Set deadlines and commit to them
- Don't multitask
- Avoid unproductive meetings
Two factors that can increase productivity include:
- Work culture
To determine employee productivity, keep the following steps in mind:
- Set clear objectives and short-term goals
- Define and measure tasks
- Identify targets and benchmarks
- Consider the client's insights
- Track progress
Employee productivity is vital for an organization's growth. Some benefits of employee productivity include:
- Better customer service
- Greater fulfillment
- Improved engagement
- Greater revenue generation
- Positive culture
Employees with 60% productivity can be considered with a good employee productivity rate for all career fields.