Factors that affect employee productivity

Each organization in any country wants its output higher than the resources they put in. When we talk about resources, a company’s human resource holds the foremost importance among all. The way your employees work shows how your company performs in the market. Employee productivity is one of the most important factors which heavily influences your company’s turnover.


According to The McKinsey Global Institute “Productivity improves by 20–25% in organizations with connected employees.”

The problem arises when there is a dwindling vibe of unproductivity among employees. Your employees either can help you achieve the organization’s objectives better or can halt your profit. Unproductive employees can lead you to the downfall of your company turnover.

It is seen by many professionals that even after many employee training and engagement activities there is a lack of optimal productivity among employees.

There can be many underlying causes those aren’t stipulated for this issue. It isn’t always right that engaged employees are productive employees, but, many times it is seen that the highly engaged employee is also unproductive.

Industry research shows that the productivity of an organization’s employees can be increased by analyzing different aspects of an employee performance and company’s responsibilities towards an employee. The main causes can involve an organization’s work culture, lack of recognition, lack of communication, lack of job satisfaction or there is no scope for growth.

Employees of any organization demand challenges and recognition which can help them improve their skills and make them stay in an organization.

Global studies prove that “Recognition is the number one thing employees say their manager could give them to inspire them to produce great work, that when it comes to inspiring people to be their best at work, nothing else comes close not even higher pay, promotion, autonomy or training.”

Every employee expects some appreciation and recognition for the work they do. Other reason behind any company’s failure could be its lack of communication. Two-way communication is an essential thing to inculcate in your company culture. Encouraging good communication among employees can reduce conflicts and increase team spirit.

“A survey of 400 companies with 100,000 employees each cited an average loss per company of $62.4 million per year because of inadequate communication to and between employees.” (Source: Research Report by David Grossman)

Many HR Personnel believes that using different knowledge management/sharing platforms helps in enhancing the communication system. Such platforms provide different features such as group discussions, announcements, reward & recognition, etc. which helps in better employee communications.

One has to analyze time to time the reasons behind the lack of productivity among employees, check-in with employees and sought out the problem with the help of good communication.

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