Productivity is a crucial topic that business leaders must bring to the forefront of discussions, particularly during this time of economic instability. Aside from helping the company create more value at a lesser cost, higher employee productivity can also inject a much-needed energy boost into a struggling economy.
The drop in gross domestic product, which led to the contraction of the US economy during the first half of the year, could be partially attributed to lower productivity. Companies who want to combat the rising costs of goods and staffing must find ways to increase their workers’ productivity to meet supply demands without necessarily spending more on recruitment and wages.
What Is Productivity
Productivity is one way of measuring an employee’s output in order to gauge the value that he brings to the company relative to the cost of his employment. There are many ways of measuring this, but the important thing to consider is that quality matters more than quantity.
Employees are not machines that can produce output at the same rate and at the same pace all the time. As such, it is customary to see highs and lows in their performance, and productivity reviews take all these into consideration. What is being measured is their collective output over time.
It is not a race to see who gets to finish more in a day or who works longer hours in the office. Rather, productivity looks at whether employees are able to perform their tasks properly and consistently, on time, and at par or even higher than the standards that the company has set. This means they can prioritize their tasks and produce output that creates more value for the organization.
Productive employees will also help you create satisfied customers because their needs are met on time and on point. Operating expenses will be reduced because tasks are performed accurately, which means less time wasted on revisions and fixing errors that could impact the business.
Factors That Affect Productivity
Unfortunately, productivity has been slowing down in recent months. Several factors have led to this occurrence, such as the early retirement of baby boomers due to the pandemic. These boomers take with them their years of experience on the job, and their spots are taken over by younger workers who are just starting to learn the ropes.
This is further exacerbated by record-high resignations and the rising phenomenon of “quiet quitting” where remaining employees do not feel the need to exert more effort than necessary in order to keep their jobs. Burnouts are also on the rise, giving employees more reason to take a step back, slow down, and reduce their previous pace.
All in all, these circumstances do not bode well for any organization. The good news is that this does not have to be a permanent or long-term situation because companies can actually do something about it.
While stress and burnout reduce productivity, employee motivation and morale can significantly improve it. Thus, employers and human resource managers need to understand what contributes to employee satisfaction on the job, then apply the necessary measures to achieve them while protecting the company’s bottom line.
How Employee Recognition Boosts Productivity
Companies that aim to survive and do well in these challenging times must be able to address the needs of their employees as a group and as an individual. One way to do this is by implementing employee recognition programs. Studies show that calling attention to employee achievements and good performance is an effective way to increase engagement.
Aside from creating a positive impact on their productivity, employee recognition programs will also improve loyalty and retention. This means that you could lower your expenses on recruitment and training because people are choosing to stay with the company.
Remember to give well-deserved rewards to the personnel about to retire as a token of gratitude for the experience and expertise they have shared with younger employees. If you need ideas for retirement awards, look for a reliable supplier who can recommend appropriate items based on your budget.
Recognition programs do not need to be grand or expensive. Simple awards and tokens are enough as long as they acknowledge the employees’ contribution and good performance. Supplement these with small acts like thank you notes and giving out compliments that have no cost but can create a happy working environment for employees. Do this for both minor and major feats as well as both individual and group efforts.
Rewards and recognition also reinforce positive behavior. The more you show appreciation for their accomplishments and quality output, the more they will want to do it continuously in order to feel the happiness and pride they get from being recognized for their efforts.
The key to successful employee recognition is being specific and intentional about the behaviors and achievements you acknowledge. Just giving generic compliments left and right will not improve productivity because the employees will need to understand what it is that was done right. Thus, the company must only recognize the accomplishments that are aligned with the company’s objectives and support the business strategy.
