6 Big Wins to Improving Employee Productivity

As business owners, we know the problems that are caused when employees aren’t motived.

Common side-effects include lower productivity, along with a dip in workplace morale. There’s also reduced profits, poor customer service, higher turnover rates, and more stress. Not to mention that unhappy employees may be tempted to take more sick days as well.

A thriving and productive workforce, on the other hand, can propel your company to new heights. Pick up any management book, and you’ll find tips and tricks for improving workplace productivity. Most of these techniques include carrot-and-stick approach that depends heavily on reward and punishment systems. However, these approaches often lose sight of the bigger picture, resulting in wasted time and money. Instead, you’ll want to look at employee engagement –as a truly engaged workforce is one that will naturally be more motivated, productive, and willing to go the extra mile. In fact, according to one study by Gallop, organizations with a high level of engagement report 22 percent higher productivity!

Unfortunately, only about 30 percent of US workers are truly engaged with their job, which means there’s plenty of room for improvement. With this in mind, let’s look at a few extremely valuable benefits that come from having a motivated workforce.

Reduce Turnover

When your employees are motivated, and happy to be there, they tend to stay put for longer. A loyal employee is less likely to leave, meaning that your turnover rates will be lower as well. This can help you to save even more in terms of recruitment and training costs as well as time spent getting new recruits on board. Plus, bringing on a new member of staff is estimated to cost $4,000 on average, beyond salary and wages. Save your money, keep the team that you have.

Improved Efficiency

According to some estimates, the average employee wastes at least three hours every day. For employers, an engaged and productive team that loves their job will be motivated to work more productively, reducing the amount of ‘down’ time, and extra-long breaks that they have at work.

More Profitable

An engaged workforce and increased profitability tend to go hand in hand. According to a study by Wyatt Watson, companies that have highly engaged employees produce 26 percent higher revenue per employee. When your employees are engaged, they’ll be more productive and efficient, which will have an impact on your company’s bottom line.

Happier Customers

Your employees are the face of your company. They are the first people that your customers see and they leave a lasting impression as well. How well your employees interact with your customers, and the type of service that they provide will have a significant influence on customer satisfaction; and whether or not they come back. Engaged and productive employees will serve customers promptly, and in a professional and friendly manner, making for happier customers.


There’s a close correlation between employee engagement and innovation. Employees that are engaged tend to perform better, and bring more passion to their work as well. This often leads to innovation. If your workplace is one that thrives on innovation, you’ll want to ensure that you do everything possible to cultivate an engaged and productive workforce.

Improved Group Morale

Finally, improved productivity can lead to a boost in group morale as well. Happiness and productivity is contagious and will help to set the tone for the rest of the team. It will help to create a better work environment, boost employee morale, lead to less tardiness and fewer sick days, and even help to attract top talent. Everyone wants to be a part of that!

As you can see there are a number of benefits to having a motivated and productive workforce. Remember, employee engagement and productivity go hand in hand. Work to create a supportive work environment, and watch as your team’s productivity improves.

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