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.
What are 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.
What Affects Employee Productivity?
Each employee has a unique set of characteristics that can impact their productivity levels. While some people may efficiently finish tasks, others may demand more time and support.
This difference in productivity levels can be attributed to factors such as nature, working technique, or ability, which are beyond one’s control. However, there are certain elements that companies can revise to increase employee productivity. So, how to increase productivity in the workplace?
These include identifying and addressing common barriers to employee productivity in the workplace. By doing so, the organization can help its employees reach their full potential and achieve optimal productivity levels. Multiple obstructions can interfere with productivity in the workplace.
Below are some of the most prevalent organizational barriers that can hamper employee productivity:
1. Employee Well-being
Employee wellness surrounds the cognitive and physical well-being of your employees. Healthy and happy employees have more mental and physical resources to dedicate, which helps them focus better and avoid procrastination.
While unwell or stressed employees may complete their work, they must work much harder and longer, which delays deadlines and risks employee burnout.
Companies should encourage their employees to practice self-care. Set the example yourself, e.g., serve healthy cafeteria options to encourage them towards wellness. Some companies issue fitness trackers to promote employee health, etc. are some of the ways to increase productivity in the workplace.
Caring for employee health humanizes your brand. By prioritizing their well-being over productivity, you treat them as humans, which boosts employee productivity, satisfaction, & motivation.
2. Communication Tools
Workplace communication is significant as it elevates employee morale, engagement, productivity, and contentment. It serves as the foundation for enhanced team collaboration and unity. In essence, efficient communication within the workplace propels superior outcomes for individuals, teams, and organizations as a whole.
Going deeper, particularly in a managerial role, honing excellent communication skills yields remarkable short- and long-term advantages for your organization. A skilled communicator can inspire their team to accomplish more with superior outcomes and diminished miscommunications.
These factors collectively contribute to the company’s triumph, thereby increasing productivity in the workplace. Clarify where work details and contacts are stored. Explain tone in messages to avoid misunderstandings. Share sufficient information for tasks. Track causes of delays by recording who said or did what and when to pinpoint issues.
3. Management Practices
The engagement level of a team manager greatly impacts employee engagement. Leaders who are available, approachable, and able to leverage individuals’ strengths to help them thrive and develop will have a much more engaged team.
Businesses that want highly engaged, high-performing teams invest in helping managers and employees emotionally connect to their work and fully utilize their talents. Effective management and leadership start from the top. How employees are managed deeply affects their productivity and morale.
Everything from how supervisors interact with their teams, conduct performance checks, deliver feedback, share expectations, set goals, and prioritize tasks strongly impacts employees.
Engaged, people-focused leaders who empower and develop their employees will achieve a highly productive, motivated workforce. Leaders’ methods and techniques to manage their teams make a significant difference.
Equipping your employees with the right tools directly influences workplace productivity. Employees who lack proper training may cause delays and mishandle resources, resulting in additional costs for the company.
Inadequate management approaches and insufficient access to essential tools contribute to employee disengagement. This, in turn, can lower individual performance, efficiency, and overall productivity within the work setting.
Employee growth and development are crucial for any organization. Employers must invest in their employee’s professional growth and provide appropriate training opportunities to sustain their career growth. Without adequate training programs, employees may not know how to perform their jobs efficiently, negatively impacting productivity.
Microlearning is a useful human resources tool that facilitates effective training programs for new employees. Additionally, encouraging career growth within the company hierarchy ensures that employees do not feel stuck in the same position for an extended period and fosters a sense of fulfillment and motivation.
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
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
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
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
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
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
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 boost 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 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.
Updated : April 20, 2023