The Importance of Employee Productivity

by K.T. Parker - Updated September 26, 2017
Maximizing employee productivity is important for a business's success.

Any successful business knows much of its success is due to diligent workers with excellent productivity. Employees who put forth extra effort often make a big difference in company profits. The employees who do only what the job duties require, and no more, can stymie the progress of a company. It is important to motivate all employees to reach their full potential and maximal level of productivity. Companies that recognize and encourage increased productivity are likely to be more successful than their counterparts that don't.


Several things influence employee productivity; companies can control some of these factors, while others are more personal. Factors that affect productivity include the work environment, suitability of tasks for the worker's skills, interactions with coworkers and bosses, and personal issues. Constant changes or upheavals in procedures or hierarchy can negatively affect employee productivity. One easily fixed problem that impacts productivity is an uncomfortable workspace, or one not maximized for ease of use.


Employers can motivate employees to increase productivity in a number of ways. Compensation is often the first area addressed, but an increase in salary doesn't necessarily equate with an increase in productivity. One important way to motivate is to ensure involvement in a project from beginning to end. Employers must also treat all employees fairly and as an integral part of the team. Managers can increase employee productivity by ensuring the worker is performing tasks she understands properly and enjoys doing. Ensuring job satisfaction is one of the top motivators.

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Recognition of employee efforts can equate to greater productivity, even among those who aren't as productive. Some workers will be motivated to increase their output if they see coworkers acknowledged for their hard work. The most productive employees deserve recognition, which can be something as simple as praise from a supervisor or something more elaborate, like a certificate of recognition or employee-of-the-month status.

Corporate Outlook

Conducted in the fourth quarter of 2010, the fourth annual CoreNet Global and Jones Lang LaSalle survey revealed a shift in corporate thinking. In 2009, only 29 percent of participating companies listed employee health and productivity as the most important measure of success, but that number had increased to 32 percent just one year later. Eleven percent of respondents also indicated employee satisfaction was the most important factor.

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