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Workforce Productivity

Workplace productivity can be defined as how efficient your workforce is, which can be measured by the number of goods they produce or services they provide in a given time. While this workforce productivity definition may seem straightforward, there’s more that goes into how productive a workforce is. Read below to explore more information about workforce productivity, why it’s important, and more.

What is workforce productivity?

Increased productivity is a consistent goal in nearly every business environment. Finding ways to measure productivity and efficiency can be a challenge, however, especially as working conditions are undergoing rapid changes. With more organizations allowing remote work, more shifts being scheduled outside of traditional working hours, and more employees working on flexible schedules, even basic functions like scheduling and remote time tracking have become much more complicated than they were not long ago. The most basic workforce productivity definition is the number of goods and services a workforce can produce in a certain amount of time, but any project manager or human resources professional can tell you that there’s more to it than that. Improving your efficiency gains — increasing profit without increasing cost —  requires close attention to individual employee productivity. That includes things like measuring engagement, listening to feedback, eliminating unnecessary processes, and providing training opportunities to improve performance. To improve productivity, an organization needs to invest in tools and systems that boost employee engagement while providing real-time communications management. Technology is a driving force behind workplace productivity, whether you’re talking about automation or remote workforce productivity. As a business owner, using technology to increase productivity in the workplace is an important part of growing and succeeding. By using technology to monitor performance and find solutions that lead to improved productivity, you can save your business a lot of money. 

What is employee productivity?

Employee productivity is a term used to describe how productive a particular employee is. You can determine this by measuring the actual output of an employee compared to the expected output of an average employee. If an employee isn’t being productive, you may be losing money. If an employee is especially productive in the eight hours during which you pay them, that’s great for your business. Several factors influence employee productivity, including what kind of work employees are doing, how employees are treated, and what sort of productivity-increasing tools are available. For example, some employees are more productive when you allow them to work remotely since they may prefer no commute and the ability to work from home. For others, nothing spurs productivity like a good computer or the right software. Understanding employee productivity and the factors that affect it is one of the most important parts of operating a successful business. It’s important that you don’t confuse workplace productivity and employee productivity because the two are very different. Employee productivity is a way to measure how productive each individual employee is, while workforce productivity is a term used to describe the combined productivity of your workforce. While employee productivity plays a role in workforce productivity, you don’t want to single out one employee for the performance of the entire company.

How do you measure workforce productivity?

As an employer, it’s important that you understand how to measure productivity. In basic terms, productivity is equal to the total output divided by the total input. Ideally, you want to get more out of your workforce than you’re putting in. The more productive your workforce is, the more money you stand to make and the more you can grow your company. Let’s say you’re dealing with an apartment construction project and you have a total workforce of 5. To measure workforce productivity, you need to figure out how much total labor time it takes to build a single unit. This gives you a ratio of productivity that you can use to keep track of your employees, and a number you can measure against future ratios to see if productivity is improving. Regularly measuring workforce productivity is an important part of building a successful business and Ascentis' contrustruction industry HR software help ensure accurate data is collected to provide correct measurements.

How to increase workforce productivity

As an employer, you need to know how to increase workforce productivity when things aren’t going as efficiently as planned. Here are some of the basic ways to increase workforce productivity:
  • Automation: By automating processes, you can save your business time and money. Plus, you free up employees’ time so they can spend their work hours doing something more productive.
  • Ongoing education and training: Keeping employees properly trained and educated helps keep them sharp and encourages better work practices.
  • Review data and analytics: You can use data and analytics to gain insight into workplace productivity, which can help you decide what changes to make to increase productivity.
  • Use technology: From automation to HR software and more, technology can help you save precious time that you can use to increase workforce productivity.
  • Work on company culture: People work harder when you respect them and treat them well, so focus on building a strong company culture to increase productivity.
Increasing workforce productivity isn’t the easiest task, but a little effort can go a long way when it comes to making your business more productive.

Why is workforce productivity important?

The more productive your workplace is, the more successful your business will be. Here’s why it’s so important to focus on workforce and employee productivity:
  • Reduce business costs: Spending less money on labor means your business saves money, so you can pay employees better and spend capital to grow your business over time.
  • Improve customer satisfaction: When you get things done on time or ahead of schedule, your customers will appreciate the professionalism and the time you saved them.
  • Help other employees and teams: Being ahead of schedule means you’ve got time to spare, so you can use extra time from more productive teams and employees to help out other teams and employees.
  • Boost workforce satisfaction: Nobody likes a slow-moving workplace where nothing gets done. When you improve workforce productivity, you’re also boosting the satisfaction of your employees.
Maximizing the potential of your business can be a difficult task, but a productive workforce is an essential part of saving you money and allowing you to grow your business.  To learn how to boost productivity in your workforce, check out our blog post "How Can More Rugged Time Tracking Devices Boost Productivity?" or visit Ascentis HR & Benefits to see how workforce management solutions can help.

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