Assessing and implementing employee productivity is essential for organisations that wish to have an efficient workforce. According to research, only 23% of the workforce is engaged at work (Howarth 2024), with ActivTrak (2023) stating that 67% of time spent working is deep, focused work.
But how do you evaluate and improve employee productivity, especially in a time when people are surrounded by more distractions than ever?
In this article, we will explore various techniques to enhance employee productivity, ways to measure it, and how to sustain a productive work environment in an increasingly digitalised society.
Understanding employee productivity
The first step to increasing employee productivity is to understand what it entails. It measures how efficiently workers contribute to accomplishing collective goals (Stryker 2024), and can lead to things such as increased revenue, employee satisfaction and improved efficiency.
Key influencing factors
Motivation is highly important for creating an efficient workplace. Motivated employees work harder and have increased focus levels whilst completing tasks, often doing something to the best of their abilities. A motivated workforce will contribute to higher overall levels of productivity, resulting in improved quality, relations, and customer service.
The tools and resources available to employees can also impact their productivity levels. Providing your employees with substantial resources to complete their work will mean they will not have to spend extra time searching for assistance, thus resulting in increased efficiency and productivity.
Communication is crucial for employee productivity. If you communicate effectively with your employees, then they will know what is expected of them, and they can deliver work to a higher standard. It will allow them to receive further feedback whilst feeling able to communicate with you their needs and concerns.
Challenges in maintaining productivity
Certain challenges can arise while trying to maintain productivity. The recent events of Brexit and COVID-19 have negatively impacted UK productivity growth within the workforce. It was estimated that the EU referendum-related loss of productivity was at 2-5% (CIPD 2023). In relation to COVID-19, managers were distracted trying to find ways to keep their businesses afloat amongst restrictions and lockdowns, so attention was diverted away from the performance of their employees.
The new digital age also proposes new challenges, as remote working is increasingly common. The Office for National Statistics (2023) found that 44% of workers reported home or hybrid working, presenting difficulties in tracking productivity as managers are unable to visually see what work is getting completed, and whether employees are situated in a productive environment. Motivation levels may decrease, as if workers are not in a productive setting, they may suffer negatively and produce work not to the highest standard.
Strategies to enhance employee productivity
For your business to continue an upward trajectory, it is important to install strategies that will enhance overall productivity. Leveraging key resources and technologies will allow employees to improve their workflow, all whilst communicating effectively and managing their time responsibly. The positive impact of this can be seen in the CIPD’s (2023) research, revealing that the average productivity in companies with more highly structured management practices was 38% higher than in companies with less structured management practices. This exhibits how the uptake of the following strategies will help create a more structured work environment, thus improving employee productivity.
Having an awareness of your employees’ skills will result in improved productivity, as by assigning tasks to employees whose skills suit it best, it will be completed to the highest standards. The knowledge of your employees’ skills is vital as a manager, as it will allow for improved relations and trust, resulting in enhanced productivity. The use of high-performance working strategies can help with this, as it involves investing in the skills and capabilities of employees to maximise organisational performance (CIPD 2023). However, the need for well-trained managers is important, so it is necessary that you demonstrate your training and knowledge while also teaching others.
Recognising and rewarding performance in the workplace will help create a positive work environment. An inclusive and supportive work environment will foster hard work, and your employees will be more motivated if they are aware that their hard work will be recognised and rewarded.
The availability of professional development opportunities will improve your employees’ productivity, as they will be able to enhance their own skill set whilst also contributing to your company. A training and development plan is an effective way to “retain top talent” (Greany 2019), upskilling or even reskilling existing employees. This will help increase your revenue, as your employees will be better trained to produce higher-quality work and be able to efficiently self-motivate.
All these strategies can lead to retention of workers and low levels of staff turnover, therefore keeping recruitment costs low with less training required. This helps increase employee productivity, as employers are not distracted by changing environments around them and are able to complete tasks to the best of their abilities, having had the necessary training.
How to measure and sustain employee productivity?
It is important to measure employee productivity, but what drives or hinders motivation can vary from one organisation to another, so evaluating your practices is significant when assessing whether the strategies you have instilled are working, or if it is necessary to try an alternative approach. It is reported that 62% of employers measure productivity (CIPD 2023), which can be done through employment engagement surveys or evaluating your company’s return on investment. However, it is understood that “productivity improvements usually require investment” (CIPD 2023), so if you are committed to improving productivity within your company, you must be prepared to put time and money into it. Below is a compilation of methods to measure productivity and how to harness their benefits to sustain productivity within your company.
An employee engagement survey helps evaluate how happy people are at your company, which in turn impacts their productivity and their likelihood of staying. These surveys can be particularly powerful, as they give employees the chance to voice their “concerns, ideas and questions” (SurveyMonkey 2024) in a comfortable setting. It can result in improved morale and satisfaction, higher retention rate and a positive company culture, all factors that contribute to sustaining productivity. This process will allow you to measure productivity within your company and install measures that will continue to sustain it.
Return on investment is an effective way to calculate your company’s profitability and compare it to other investments made, further allowing you to evaluate employee productivity within your company. It can allow you to set goals for your company which could propel you further in the industry, and judge whether your employees are performing up to the standard that is required.
According to the CIPD (2023), 48% of organisations rated their productivity above average, so it is evident that these strategies are successful if completed constructively. To know whether your company is effectively producing work, the uptake of these strategies will assist you in both measuring and sustaining productivity.
Conclusion
To conclude, the development and continuation of employee productivity requires strong management. Implementing strategies such as high-performance working, the availability of professional development opportunities and recognition of high-performance will optimise employee productivity within your company, contributing to increased revenue, customer satisfaction and employee happiness.
If you’re seeking further insights on building and maintaining high-performing teams, please do not hesitate to get in touch with us. Our expert HR advisors are always delighted to assist and offer tailored support to enhance your organisational success.