The aftermath of the pandemic has shown the US economy being sluggish over the last five to six financial quarters despite the labor market showing resilience with sustained job gains. This is largely due to successive workforce changes coined as “the great resignation” or “the labor shortage” – including an acceleration in early retirements, a mass exodus from the job market, and significant job changes – resulting in a marked drop in productivity levels.
Given the high rate of job switching, there have been minimal opportunities to acquaint new workers with procedures and bring their productivity levels to match those of past workers. In fact, recent studies have revealed that US productivity declined by 2.7% in the first quarter of this year compared to the preceding year. Simultaneously, quarter-over-quarter output only grew by 0.2%, while hours worked have increased by 3%, suggesting a decrease in the standard productivity levels.
Employee Productivity And Its Economic Impact
In the increasingly competitive business climate, the key to securing consistent growth and success often depends upon the productivity of a company’s most crucial asset – its workforce. This is because highly productive teams boost an organization’s profitability and significantly contribute to the broader economy and society.
Employee productivity refers to the amount of work accomplished or the total output by an individual within a specific timeframe, typically an hour. It is also an essential but frequently overlooked aspect of economic health, as increased productivity indicates heightened efficiency, as well as better innovation, competitive advantages, and the overall standard of living.
In essence, more productive workers can generate higher output, increasing profits for companies and higher income for individuals, thus boosting GDP growth. Innovation triggered by productivity can also lead to improved products or services, enhancing businesses’ competitiveness both locally and globally and contributing to increased trade and job growth.
Moreover, productive employees are most likely to be engaged and happy because they feel part of something bigger than themselves. These motivated employees will want to do their best because they want to see the company succeed and are more likely to stick around longer, which means lesser turnover costs for the organization.
Ways To Improve Employee Productivity
You can keep your employees happy, motivated, and productive by building a culture that fosters growth and positivity. Here are some ideas for how you can amp up their productivity:
- Create A Motivational Environment
There are many ways to encourage motivation in an organization, but it all boils down to having a positive, collaborative, and inclusive work culture where employees feel comfortable and dedicated to their roles. Some examples are promoting work-life balance, fostering open communication channels, and providing professional learning opportunities to help employees develop or hone their skills.
Another crucial strategy is appreciating employees’ achievements because each team member wants to feel valued for their work and the skills they bring to the organization. Aside from giving regular feedback, giving away concrete proof of appreciation to employees, like glass awards for hard work or innovative ideas, can significantly enhance their commitment and dedication.
- Set Clear Goals
Goals act like a roadmap that directs employees’ efforts towards the critical aspects of the company, providing a focused framework for employees to operate within. They offer guidance, direction, and a sense of purpose while allowing for measurable results, thus creating a sense of clarity and coherence among team members and reducing wasted time spent on non-aligned tasks. Goals also encourage accountability among employees because when clear targets are established, each person can be held responsible for their part in reaching them.
The foundations of setting clear goals are rooted in the SMART methodology – Specific, Measurable, Achievable, Relevant, and Time-bound. Prioritization is also essential, as assigning appropriate importance to various objectives enables employees to focus their efforts where it matters most. Lastly, goals should be transparent to ensure everyone understands the team’s aim and how their efforts tie into the larger picture, which promotes greater buy-in from employees and fosters a collective sense of responsibility.
- Encourage Healthy Productivity Habits
Employee health is a critical driving force behind increased productivity, affecting essential factors such as attendance, focus, and the overall work environment. As such, companies that invest in the health and well-being of their employees not only stand to benefit from increased productivity but also foster a more positive, collaborative, and thriving workplace culture. This can be achieved through several effective strategies, including implementing corporate wellness programs, promoting physical activity, encouraging regular breaks, and fostering mental wellness.
First, organizations could offer seminars on healthy eating, health screenings, or resources for smoking cessation, make these resources easily accessible to employees, and even provide incentives to encourage participation. Promoting physical activity is another crucial component, which can be done through gym memberships, on-site yoga or exercise classes, or fitness challenges. Regular breaks are also essential to help employees refresh and recharge, and companies can facilitate this by providing spacious, comfortable break rooms or creating quiet zones where employees can relax for a few minutes. Employee stipends–for wellness, remote work, meals, and food–are another benefit option. See Benepass’s guide for information.
- Provide The Right Tools And Equipment
Tools can help employees execute their tasks more effectively and efficiently, drastically minimizing time wasted on combatting technical issues or using inefficient methods. When used correctly, they can also increase job satisfaction and employee confidence, leading to higher quality outputs and increased efficiency.
However, the right type and quality of tools and equipment must be provided, so it’s best to start with a needs assessment that determines the specific tools and equipment each department or individual requires to complete their tasks effectively and efficiently. This assessment should also incorporate direct input from employees to cater to their unique needs and preferences accurately. After this, the company must ensure that relevant training is provided, plus a regular upgrade and maintenance schedule is established to keep all tools and equipment in optimal condition at all times.
