How to Increase Employee Productivity: All You Need to Know

Want to learn how to increase employee productivity in the workplace? You’re not alone!

With hiring top talent becoming more and more difficult, employers are constantly finding new ways to maximize their ROI by improving the productivity of their current teams.

Businesses across all sectors are continuing to feel the economic impact of recent lockdowns and supply chain disruptions. To make matters worse, employee turnover was estimated to be around 20% in 2022, according to Gartner.

In this context, staying competitive will entail taking all the measures necessary to increase employee productivity and engagement.

This blog article looks at some of the best practices when it comes to boosting employee productivity.

Read on to find out what changes you can make that will have lasting effects!

7 Tips on How to Increase Employee Productivity

The good news is, you don’t need to take drastic steps for improving employee productivity. It’s actually easier than you think.

Just follow these steps to increase employee efficiency, productivity, and engagement.

1. Communicate Your Company’s Values and Purpose

Monetary rewards are important, but in the post-pandemic era people are increasingly looking for a sense of purpose and meaning in the work they do.

They want to work for companies whose values align with their own.

Your company’s values set the tone for building a positive workplace culture in addition to laying down the code of conduct and giving a sense of purpose to your employees.

Here’s an example of the inspiring values of Bayhealth, a Delaware-based healthcare system.

Image via Bayhealth

It's no secret that employees who are aware of and buy into their company's values and goals are more engaged.

Additionally, it creates a sense of ownership and buy-in among employees as they know that their work is contributing to something larger than themselves and feel proud to be a part of it.

When employees feel the organization’s purpose is aligned with their own purpose, the benefits are many:

Image via McKinsey

And, as many studies show:

Higher engagement = higher employee productivity.

Image via Gallup

So, how can you create and communicate your company’s values? Here are some tips:

• Consult with your team members and employees at all levels to identify the most important company values.
• Try to distill your company's values down to a few key points that can be easily remembered and communicated.
• Ensure they are unique to your company and not a copy of your competitor’s values.
• From emails and memos to presentations and blog posts, find ways to incorporate your values into the language you use to communicate with employees, customers, and partners.
• Gather feedback and modify the values if necessary.

2. Set Clear Goals and Expectations

To improve employee efficiency, you must set clear expectations and goals. Your employees should know what is expected of them in their current role and what goals they should be working towards.

Setting measurable and time-bound goals will also help you evaluate your team’s performance and reward those who achieve them.

Here’s an example of a measurable and time-bound goal:

Image via Culture Amp

Follow these tips to set clear goals for your employees:

• Write clear job descriptions and ensure you highlight what’s expected of a candidate during the interview. Clearly communicate the job responsibilities, performance expectations, etc.

• Involve employees in the goal-setting process. Be sure to align each individual’s goals with their department’s and the overall company’s goals.

• Make sure your goals are S.M.A.R.T. (specific, measurable, achievable, realistic, and time-bound). Strike a balance by setting realistic goals that challenge your employees but are still achievable.

• Have regular check-ins with your employees, and give feedback on their performance.

• Be flexible when necessary. There will be times when circumstances change and you need to adjust your workforce productivity expectations or goals accordingly.

3. Offer Flexibility

Despite concerns over a lack of face-to-face interaction that can lead to a sense of loneliness, the overall results of remote work and flexible schedules have been positive.

In a PwC survey, 83% of employers and 71% of employees think remote work has largely been successful.

Image via PwC

What’s more, over half of the surveyed employees want remote work options three or more days a week.

Image via PwC

Remote or hybrid work gives employees the flexibility they need to attend to family matters. In fact, 79% in the PwC survey gave a top rating to this benefit of remote working.

Here are some steps to take to transition to a remote or hybrid work model:

• Conduct an internal survey of all stakeholders to understand what your employees want.
• Develop a detailed plan and vision for the remote/hybrid work model.
• Communicate the vision and the plan to all stakeholders.
• Take measures to boost connections and collaboration between employees.

4. Focus On Training

Researchers expect that by 2025, the skills needed for the same roles will change by 40%. In addition to helping you upskill your employees, training plays a vital role in attracting and retaining talent.

Here’s why:

According to this Emeritus survey, 84% of employees would choose a company that invests in employee training over one that does not.

Will it help increase employee productivity? Yes!

This study has found a strong correlation between employee training and productivity. These numbers confirm the correlation:

• 89% of employees agree that learning new skills helps them stay engaged at work, according to the previously-cited Emeritus survey.
• 59% believe more training will improve their job performance.
• 41% believe training boosts their time-management skills.
• 51% say it makes them more self-confident.

That’s not all. Employee training has a direct impact on multiple areas across the organization, according to this Emritus survey:

Image via Emeritus

Here are some strategies to optimize your training programs:

• Identify the skills, knowledge, and competencies needed to make employees better at their jobs.
• Conduct surveys, one-on-one interviews, and formal assessments to find out the current skills/knowledge of employees and their training needs.
• Evaluate your training resources and budget.
• Align the training programs with employees’ needs and the company’s goals.
• Offer a blend of learning programs by mixing experiential, on-site, and e-learning.
• Gather feedback on an ongoing basis and make regular adjustments.

5. Avoid Micromanaging

Are bad bosses in your organization killing employee productivity?

Micromanagement not only kills employee productivity, but it can also lead to high turnover rates as employees become frustrated and look for new opportunities elsewhere.

In a recent survey, 82% of workers in the US said they would quit their job because of a bad manager and are most annoyed by bosses who micromanage.

Image via GoodHire

In addition to talent loss, micromanagement stifles creativity, hinders communication, and creates an environment of fear.

Here’s what you can do to address issues related to micromanagement:

• Conduct an anonymous survey to encourage employees to give an honest opinion about their managers.
• Give more responsibility and autonomy to employees.
• Set expectations and provide guidelines to managers and employees.
• Encourage open communication between managers and employees. This can be done by establishing regular check-ins, and by encouraging employees to share their ideas and concerns.

6. Reward Productive Employees

Do rewards help increase employee productivity?

A recent study found that rewards boost employee performance by motivating them to do better.

But, over half of employees, according to the Achievers Workforce Institute, feel they are not recognized at work. This can promote disengagement and affect productivity, eventually leading to a higher turnover.

In fact, the more frequent the recognition from peers, the higher the level of employee engagement.

Image via Achievers Workforce Institute

The best way to reward employees and boost productivity is to offer a mix of both tangible and intangible rewards.

Tangible rewards can include things like bonuses, raises, and paid time off. Intangible rewards can include things like recognition, acknowledgment, and appreciation.

When designing a reward system for employees, it is important to keep these points in mind:

• Whether it's a bonus, extra paid time off, or simply public recognition, offering an incentive for reaching a goal is a great way to motivate employees to do their best work.

• A simple “thank you” goes a long way, but there are plenty of other ways to show appreciation. Consider giving employees small gifts, sponsoring vacations, or letting them choose their own rewards.

• Healthy competition can be a great way to get employees engaged and excited about their work. Try setting up team-based challenges with prizes for the winners.

Pro Tip: Start a rewards and recognition program wherein you give monthly or quarterly awards to top-performing employees. This will create healthy competition among employees as they strive to win awards.

7. Provide Tools and Resources

There’s no question that the right tools and technology can help boost employee productivity by enhancing collaboration and improving efficiency.

But, knowing what tools and technology can help increase employee productivity is important.

Here are some things to keep in mind when investing in technology to boost productivity:

• Identify the tools and technology you need by identifying things that are wasting your employees’ time. Gather inputs from employees before drawing up the list of tools and technology you need.

• Given the growing trend of working remotely, focus on virtual collaboration and communication tools, such as Slack or Slack alternatives like Chanty, Discord, or Zoho Cliq.

In fact, 72% of executives in the PwC survey said they expect to invest more in virtual collaboration tools in addition to management training.

Image via PwC

• Automation tools can help speed up many repetitive tasks right from email responses and scheduling, to invoicing.
• Leverage free applications like Chrome extensions and Google Analytics where possible to minimize technology-related expenses.
• Train employees on using the new tools and technology.

FAQ

Q1. What are the 3 ways through which employee productivity can be increased?

A. Here are 3 ways to increase employee productivity:

1. Create a positive working environment where employees are given the right tools, processes, and support to do their jobs well.
2. Invest in training and career development to help employees feel more motivated.
3. Foster communication between teams and departments to create a productive workplace.

Q2. What are the 4 factors that can increase employee productivity?

A. The four factors that can increase employee productivity are:

• Setting clear goals
• Creating a positive and productive environment
• Providing access to tools and resources
• Effective communication

Q3. How to improve employee productivity in an organization?

A. We’ve listed the steps to take in this blog post on how to improve employee productivity.

It all starts with setting clear goals and objectives that employees can work towards and creating a positive work environment that encourages open communication and collaboration between teams.

Q4. What are the modern methods of increasing employee productivity?

A. Here are some new and innovative tips for increasing your employees’ productivity:

• Building a sense of purpose and a culture of welfare
• Investing in employee development
• Providing flexible work options
• Leveraging technological solutions

Q5. What factors affect employee productivity?

A. Employee productivity is affected by a number of factors, including the work environment, the quality of leadership, the clarity of goals, working hours, and the rewards offered.

The Takeaway

It is difficult to measure employee productivity quantitatively and it’s even harder to improve productivity in a tangible manner. However, using the right tools and strategies you can improve your team’s productivity.

By following our simple 7-step guide, you can make sure that your employees are working at their full potential and achieving more in less time.

It's all about creating a culture where employees feel a part of something bigger and are empowered to live up to their full potential. Remember, a happy employee is a productive employee.

Which of these tips on how to increase employee productivity worked the best for you? Let us know in the comments below.