How to Increase Employee Productivity: All You Need to Know

Looking to increase employee productivity in the workplace? You’ve come to the right place!

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 13.5% in 2024, according to Mercer.

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

This blog article discusses how to increase employee productivity. Read on to find out what changes you can make that will have lasting effects!

9 Tips on How to Increase Employee Productivity

The good news when trying to figure out how to increase employee productivity is that you don’t need to take drastic steps to improve 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 so knowing how to increase employee productivity is crucial.

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 know and buy into their company's values and goals are more engaged.

Additionally, knowing how to increase employee productivity creates a sense of ownership and buy-in among employees. 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 employee performance and reward those who achieve them.

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

Image via Culture Amp

Here’s how to increase employee productivity through setting clear goals:

• 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  employee productivity 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 employee 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.

A 2023 study by the National Bureau of Economic Research found that remote workers saved an average of 72 minutes that would have been lost to daily commutes.

The same study also found that 40% of this saved time was redirected to other things like leisure and caregiving activities. This resulted in happier employees compared to on-site workers.

Remote or hybrid work gives employees the flexibility they need to attend to family matters.

Here’s how to increase employee productivity when transitioning 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 the 2024 LinkedIn Workplace Learning Report, 90% of organizations consider providing learning opportunities as the top employee retention strategy. 

Additionally, 7 in 10 surveyed employees indicated that learning improved their sense of connection to their organization.

The  employee productivity report goes on to state that 8 in 10 workers said that learning and training at work increased their sense of purpose towards their roles. Therefore, it’s clear that providing training to employees has an overall positive impact on the organization.

Image via LinkedIn

Here are some strategies to optimize your training programs so you can boost  employee productivity:

• 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 the reason behind lost employee productivity? Probably yes.

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.

One of the key things to keep an eye on when figuring out how to increase employee productivity is employee engagement. When they’re enthusiastic about their work, productivity soars. 

However, this can be negatively impacted by overbearing managers and bosses who want to micromanage everything.

According to Gallup’s State of the Global Workplace 2024 report, low employee engagement costs the global economy approximately $8.9 trillion.

Image via Gallup

This underscores the importance of managing employees correctly and giving them the space they need to execute their roles.

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

Here’s how to increase employee productivity by addressing 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 survey by Nectar asked participants if being recognized at work positively impacted their output, to which 83.6% responded a Yes.

Image via Nectar

The same survey also found that 77.9% of the respondents admitted they would be more productive if recognized more frequently. Another 71% claimed that they were less likely to leave the organization if their work was rewarded or recognized more often.

The best way to reward employees and boost productivity is to offer a mix of both tangible and intangible rewards. Employee advocacy can help by encouraging a supportive environment where employees are more likely to feel recognized and appreciated, further driving engagement and retention.

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

Here’s how to increase employee productivity through rewards:

• 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 and boost employee productivity.

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’s how to increase employee productivity by investing in technology:

• 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.

• 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.

8. Provide Constructive Feedback

Giving constructive feedback is one of the best ways to boost employee productivity. When feedback is clear and actionable, it can give employees a better sense of direction. They know what’s expected of them and how they can improve. 

Constructive feedback builds trust by focusing on improvement rather than pointing out mistakes. The key is how you deliver the feedback, as no one likes to feel attacked or criticized unfairly. Employees are more likely to take feedback positively if the feedback feels supportive. 

Here’s how to increase employee productivity through constructive feedback:

• Start with positives by sharing what they’re doing well before mentioning what needs improvement.
• Be specific and focus on actions or behaviors, not personal traits.
• Use “I” statements like “I noticed”, instead of “You always.” This ensures the employee doesn’t feel attacked.
• Offer solutions by suggesting ways they can improve instead of painting out their shortcomings.
• Keep it private and ensure the feedback is one-on-one.

9. Minimize Distractions

Distractions in the workplace can significantly impact employee productivity levels. It’s hard to focus when interruptions keep pulling attention away. 

A report by Insightful found that 79% of survey respondents admitted that they can’t go an hour without being distracted at work. The survey added that the three leading workplace distractions are people interrupting (71%), phone notifications (62%), and checking emails (32%).

Image via Insightful

A quieter, more focused environment helps people stay in the zone. Clarity of thought enables us to approach tasks systematically and address them individually.

Here’s how to increase employee productivity by minimizing distractions:

• Set quiet hours: Pick times when employees won’t be interrupted by calls, meetings, or non-urgent messages.
• Limit unnecessary meetings: Make meetings short or replace them with quick updates through messages.
• Offer noise-canceling tools: Provide headphones or create quiet zones for focused work.
• Encourage breaks: Short breaks can help employees recharge and stay sharp throughout the day.

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 increase 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 employee advocacy tools and strategies you can improve your team’s productivity.

Hopefully, you now know how to increase employee productivity. By following our simple 9-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.