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Increasing the productivity of employees
Last updated: January 29, 2026
Productivity expresses the volume and quality of work employees accomplish in a specific time frame. This guide explores the factors influencing this key metric and how employers can improve productivity using both motivational tactics and workforce management technology.
Employee productivity key takeaways
- Employee productivity has a direct impact on business costs, the quality of goods or services, and customer satisfaction.
- Matching expected demand to the labor available is essential to productivity, but it can be challenging due to absences, extended leave and over-reliance on part-time and contingent workers.
- Minimizing workplace distractions and aligning employee goals with organizational objectives are two proven methods of improving productivity.
- Workforce management solutions automate processes, encourage collaborative communication and deliver insightful analytics that can help businesses achieve optimal shift coverage.
People tend to spend a large portion of their work day focused on something other than what they're supposed to be doing. Even the best employees sometimes lose attention or experience a slump.
However, optimizing productivity is essential for any business to succeed and thrive. Achieving this goal need not always require expensive training or fancy equipment. Sometimes, a closer look at the environment in which people work – or don't work – is it all takes to discover more efficient methods of workforce management.
Table of Contents
What is employee productivity?
Employee productivity is a measurement of the quantity and quality of work people can accomplish in a given amount of time. It’s one of the most significant key performance indicators (KPIs) used by businesses of all sizes and in all industries.
The importance of employee productivity
Poor productivity due to over or understaffing wastes time and money. It also diminishes the quality of goods and services, further negatively impacting bottom lines.
Efficiently allocating and managing labor hours has the opposite effect. When staffing levels accurately meet work projections, organizations usually reduce costs, improve quality and enhance both worker and customer satisfaction.
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What factors affect team productivity?
Productivity comes down to matching workload volumes to the available labor resources. Several factors may affect whether an organization successfully achieves this objective:
- Planned absences – Paid time off (PTO) that exceeds more than 10% of the total worked hours often diminishes a department’s ability to operate without overtime due to inadequate resources.1
- Unexpected absences – Unplanned absences greater than 5% of total hours worked also may necessitate overtime to maintain productivity.1
- Family or medical leave – Employees may be entitled to leaves of absence under the Family Medical Leave Act (FMLA) and other state laws. Vacancies of this nature that exceed 10% of total hours worked often require thoughtful strategies to fill open shifts until employees return to work.1
- Full-time/part-time employee ratios – Many businesses benefit from having a source of part-time labor to accommodate fluctuating workloads and employee absences. However, productivity may suffer if the number of full-time staff drops to less than 50% of the total positions.1
- Supplemental staff – Contingent, per diem and temporary employees are usually less familiar with policies and procedures than full-time and part-time workers. In the interest of productivity, employers may want to limit supplemental staff to fewer than 15% of the workforce.1
How to improve employee productivity
How can employers increase employee productivity without substantially increasing spending? The following low- or no-cost tips can help generate new enthusiasm and keep slow, unproductive days to a minimum:
Align individual goals with the organization’s goals
People tend to be motivated and produce quality work when they understand how important their contributions are to the company’s success. Sometimes, however, employees don’t see the connection between their labor and the business’s growth strategy. Employers should work with employees to create performance goals that align with the organization’s broader objectives.
Limit workplace distractions
Hard-working employees are as susceptible to distractions as anyone else. Inordinate amounts of chatter and high noise levels can be particularly disquieting. Employers should explore ways to modify work environments to improve individual and team productivity.
Permit personal internet use
It’s common for employees to check personal email, engage in social media or browse web sites at times throughout the workday. Some businesses prohibit this activity, but that often results in people breaking firewalls or using personal devices to access the internet. Alternatively, organizations can dedicate short periods each day for employees to engage with digital media.
Promote two-way feedback
Providing meaningful feedback to employees helps them perform better. Receiving feedback as an employer can be just as productive. Employees might have great ideas on how to improve a product or service, and they're apt to feel more connected to the organization if it acts on their suggestions.
Interact with workers
Employees may not be motivated if their supervisor is distant, whereas a friendly manager can naturally encourage hard work and commitment. Employers should try to get to know people better by asking about their lives away from the workplace. Families, hobbies and travel are great topics of conversation.
How to boost employee productivity using workforce management technology
Workforce management technology helps increase staff productivity for an organization in several ways. It automates processes, improves communication, optimizes shift coverage and provides proactive insights. In effect, employers have more time to focus on the work most critical to the success of their business.
Process automation
Workforce management solutions automate employee timekeeping, scheduling, PTO requests and approvals, and leave case management. This automation leads to less manual effort and paperwork, which saves time and increases efficiency.
Workflow consistency is another benefit of automation. For example, manager dashboards can highlight requests awaiting approval or timecards with exceptions waiting to be addressed. Some solutions can even automate recommended actions based on business rules and policies.
Convenient and collaborative communication
Today’s workforce management solutions are mobile friendly, making it easy for managers and employees to access schedules, approvals and tasks. This feature helps keep everyone informed, on time and productive.
Another convenient feature is collaborative scheduling. It enables employees to share their availability and preferences, as well as request shifts to be swapped or dropped through their mobile devices. Managers can also publish schedules and post open shifts for employees to claim. This collaboration often results in schedules that people are happier with, increasing their energy and productivity in turn.
Optimal shift coverage
Artificial intelligence (AI) can leverage historical data to forecast labor requirements and improve scheduling accuracy. Businesses are more likely to have adequate coverage during peak demand, minimizing shortened staffs and the need for overtime as a result. Likewise, companies may have fewer instances of being overstaffed, so workers are not bored or idle when there are lulls in activity.
Systems can also optimize schedules based on employee availability, certifications, licenses, skills and preferences. This capability helps employers comply with state and union regulations that require a certain number of certified or skilled employees for specific shifts.
Proactive insights
Workforce management technology provides insights into absenteeism, overtime and actual hours worked per week or pay period. It can also identify patterns in employee behavior more quickly and reliably than people can. Using this information, employers can find the root causes of issues within departments or teams before they become full-scale problems.
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How to measure workplace productivity
Measuring productivity is most effective when talent management and workforce management systems are integrated. Integrations allow employers to see talent metrics, such as hiring and turnover, alongside workforce metrics, such as overtime, absences and premium labor costs.
Easy access to this data allows management to create the most ideal schedules and enact employee learning, development and succession plans to keep a steady stream of talent flowing to where it is needed. Ultimately, they’re able to increase workforce productivity in both the immediate and long term.
Frequently asked questions about how to improve worker productivity
When is employee productivity at its best?
Employee productivity is usually optimized when workload volumes match the available labor resources. To achieve this dynamic, organizations must be able to accurately measure and track employee time, attendance, deficit demands and expenses.
How do you tell an employee to increase productivity?
Providing consistent feedback, preferably face to face, is a good way to improve staff productivity issues. The key is to be as open and honest with people as possible. Frequent communication can also help employers uncover the root causes of poor performance or absenteeism, such as job dissatisfaction or internal and external stressors.
How is employee productivity changing?
Generative AI is revealing efficiencies, creating productivity opportunities and introducing new ways of getting work done. The technology has changed so fast that some companies are still exploring how it works. Others have long since operationalized AI, with adoption varying by business size.
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1Labor Management Institute: 10 best practices for time and attendance professionals
This guide is intended to be used as a starting point in analyzing how to increase productivity of employees and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax guidance or other professional services. Please consult with your legal counsel.
