The challenges that companies face today are different. Organizations face competition extends beyond geographical boundaries. They must deal with employees who can choose to work remotely, at office, and in a hybrid format, and customers have more choice, making them more demanding. When faced with these changes, companies must focus on improving employee productivity. However, it is limiting and incorrect to measure productivity by counting the number of hours employees have worked.
Employee productivity must be measured by the value employees bring to the workplace and the impact they have on the business stakeholders–both internal and external. Most companies today focus on finding winning strategies to improve employee productivity in the workplace. Great Place To Work® data reinforces this connection between workplace culture and productivity. At Certified™ companies, 82% of employees say people are willing to give extra effort to get the job done, compared with 65% at typical Indian workplaces, a 17-point difference. This highlights how a positive employee experience can translate into greater discretionary effort at work.
The starting point for determining which strategies will work is to conduct employee surveys, talk to leadership, review what other companies in the same industry are doing, and formulate strategies. At Great Place to Work®, we partner with companies to evaluate their culture and improve employee productivity.
What Does Employee Productivity Mean and What Is Its Impact?
Companies define employee productivity in different ways. They evaluate how efficiently and creatively employees use their skills and time to produce measurable results within the organization. These results are measured by how well they improve the quality of goods or services delivered to customers or how they enhance internal work processes, team dynamics, and overall employee morale.
In the years past, companies measured employee productivity by the hours they punched in at work or the project tasks that they finished. Today, companies measure employee productivity by looking at aspects that include quality of work, business goals achieved, innovations they have added to work, how well they collaborate with their team, sustainable practices they have implemented, and impact on customers.
The Impact of Employee Productivity
Employee productivity impacts every aspect of the organization, and its ripples are felt across the industry and peer network. Here are some aspects that are impacted by employee productivity:
Impact #1: Revenues and Profits
The biggest impact of improved employee productivity is on the company’s revenues and profitability. With increased employee productivity, the company can deliver better-quality goods and services on time at competitive prices. This, in turn, has a positive impact on revenues and profits.
Impact #2: Customer Experience
In a productive environment, employees work better and improve their interactions with all their stakeholders, resulting in a better public image, talent retention, improved shareholder value, and excellent customer experiences. It becomes easier for the company to attract and retain the best talent, improve their market share, and minimize customer complaints.
Impact #3: Employee Motivation
Employee motivation starts with employees feeling safe and valued at work. When this happens, employees strive to keep improving at work and become productive. Motivated employees are better at problem-solving, focus on outcomes, and likely to interact positively across all stakeholders.
Impact #4: Better Public Image
A company’s public image is shaped by satisfied stakeholders, such as its customers and employees. When employee productivity is high, employees are motivated to do better; the company is likely to offer larger bonuses; customers are happy with the products or services they receive; and the overall result is a better public image.
Impact #5: Innovative Approach
When employee productivity results from an innovative approach, it can also motivate employees to be creative in their approach to routine problems. A smart approach to work helps employees become more productive and innovative in their approach to regular work.
Impact #6: Better Employee Retention
Motivated employees are more committed and motivate. When they feel that the company is committed to providing them with growth, recognition, and rewards that match their contributions. When this happens, employees are more driven to stay committed to their work, motivate others, and ensure collaboration across all departments. They are more likely to want to stay and grow with the organization.
What Are the Winning Strategies That Improve Employee Productivity?
This section will delve into winning strategies that leading companies across the country use to keep their employees committed and motivated to stay working with them. These organizations rely on intentional policies and systems that will help employees bring their productive best to work and stay motivated to keep performing at their best.
Strategy #1: Create a Welcoming and Open Atmosphere at Work
When a new person enters the company or moves to another department within the same company, successful companies offer support and nurture these employees to ensure they get the support they require at all times. 87% of employees at certified companies say that when people change jobs or work units, they are made to feel right at home, compared with 81% at typical workplaces. When a company does this consistently, employees perform at their best, improving overall productivity. Existing employees also view their newer counterparts as an addition to the team rather than as competition and work cohesively.
Strategy #2: Make Goals and Expectations Clear From the Onset
When employees are clear about what is expected of them, they are more likely to work towards these goals. This is also reflected in Great Place To Work data. 89% of employees at Certified™ companies say management makes its expectations clear, compared with 84% at typical workplaces. Clear expectations give employees a stronger understanding of what is expected from them and where their work fits into the larger goal. When companies set clear expectations from the beginning, employees are more likely to work toward these goals. It ensures that employees find creative, innovative ways to do their work well.
Strategy #3: Offer Forums and Opportunities to Foster Recognition
Positive motivation is one of the most important requirements for work and productivity. When a company recognizes its employees for a job well done, they are more likely to work harder and smarter, producing better results. In fact, 82% of employees at certified companies say people are willing to give extra effort to get the job done, compared with 65% at typical workplaces. People thrive in workplaces where they are recognized as being important and impactful.
Strategy #4: Give People the Ownership and Responsibility for Their Work
Micromanagement is one of the biggest deterrents to employee productivity, as it creates an atmosphere of mistrust. And when companies make employees responsible for their daily work and take ownership of the overall goal, then they are more likely to perform at their best because they want to live up to or exceed the company’s expectations. The data shows a similar relationship between responsibility and the employee experience. 85% of employees at certified companies say people are given a lot of responsibility, compared with 81% at typical workplaces. Giving people ownership signals trust and allows them to take greater accountability for their work.
Strategy #5: Provide Tools, Support, and Resources to Complete the Job
Another strategy after recognition and assignment of responsibilities that improves productivity is providing the right tools and resources to help employees perform. When organizations invest in the right resources to support employees in their work it becomes an effective strategy that works at all levels. Employees view this as the employer’s commitment to help them grow at a personal and professional level. The difference is visible in employee experience. 93% of employees at certified companies say they are given the resources and equipment to do their job, compared with 90% at typical workplaces. While the gap may appear small, having the right resources removes everyday friction and enables employees to focus their time and energy on creating value.
Strategy #6: Constantly Evaluate Current Work Setup and Tweak as Needed
Organizations must constantly evaluate the efficacy of their employee productivity strategies. This will help them understand what is working and what needs to be tweaked to meet changing employee requirements. The way people work has evolved significantly and continues to do so, and the setup needs to evolve to ensure employees feel supported.
Strategy #7: Empower Leadership to Support Employees Better
With changing work styles, it is crucial to empower leadership with the requisite systemic and training support to better manage their teams. For instance, a change from onsite work to a hybrid setup requires team leads and managers to adapt their style accordingly. They must learn how to balance support with supervision to ensure employee productivity is at its optimal level.
Strategy #8: Strengthen the Culture to Focus On Results Rather Than Efforts
In today’s dynamic work environment, work styles are constantly evolving, requiring the organizational culture to adapt in tandem with these changes. In the past, the focus of evaluating employee productivity was on effort rather than outcomes. However, it is becoming increasingly clear that the focus must shift to outcomes, and that this shift must begin with a cultural change.
Strategy #9: Reduce Unnecessary Meetings and Reviews
When asked, employees who have transition from an on-site work setup to a hybrid one will express their frustration at the time they spend on the number of meetings and reviews. One way to approach employee productivity strategically is analyzing which meetings and reviews are essential and eliminate those that are not. Managers can also consolidate some meetings to reduce the overall time spent on them.
Does Employee Engagement Play a Role in Improving Productivity?
Studies show that employee engagement is directly linked to employee productivity. Engaged employees are generally more motivated to do their work well and collaborate well with others. They often demonstrate some of the following attributes:
- Show commitment to their work, responsibilities, and organization
- Collaborate effectively within their teams and across departments
- Take initiative and look for opportunities to innovate in their work
- Focus on improving customer experiences across all touchpoints
- Maintain consistent attendance and stay engaged throughout the workday
- Work independently while reaching out for support when needed
Employee Productivity Strategies and the Way Forward
Improving employee productivity in today’s changing work environment, technological evolution, and intense competition is the responsibility of leadership, in tandem with the human resources department. The strategy can be as simple as borrowing an innovative approach from an industry leader or developing one based on employee sentiment and feedback.
The approach a company takes to improving employee feedback will impact all aspects of the organization, including revenue, customer satisfaction, and market perception. The starting point for building effective strategies to improve employee productivity must start from within.
Our experienced team at Great Place To Work can get you started in the right direction. Our expertise spans various aspects, including conducting impartial employee surveys, helping you build a positive culture through our culture consulting services, and providing leadership-building capabilities. We also offer tailored solutions to meet the company’s specific needs.
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Frequently Asked Questions (FAQs)
What is the impact of employee productivity?
Employee productivity affects all aspects of the company. These could include revenue generation, product or service quality, customer satisfaction, external stakeholders’ perceptions of the company, and the company’s valuation. Productivity also helps a company perform well in a competitive environment.
Do we need a big budget to improve employee productivity?
Most of the time, strategies to improve employee productivity do not require a large budget or heavy investment, unless the company is completely overhauling its current technology base. In most instances, the productivity improvement strategies require a change in approach and a culture reset rather than a huge investment.
How can leadership and HR work together to improve employee productivity?
To improve employee productivity, the leadership team and HR will need to work together to formulate strategies based on insights gathered at the ground level. In most cases, HR will take on an administrative and supportive role, while leadership will deploy the strategy down their respective departments. For instance, a CFO will work with the team leads of the accounts and finance department, with HR stepping in to provide policy and other support.
Do companies of all sizes need to work on improving employee productivity?
Companies of all sizes are changing the way they work. They will have to work towards improving employee productivity to maintain their competitive position and profitability, manage their workforce, and meet the challenges of a competitive market.
Why do some companies achieve higher productivity while others do not?
Some companies consistently achieve higher productivity for multiple reasons. These include heightened awareness of their workforce’s sentiment, continuous updates on changes in work styles, and an open attitude to keep evolving.
