Oct 15, 2019 9:30:00 AM

The long-term benefits of employee productivity

Your employees are an integral part of your business’ operations every day.

After all, that’s why you hire them in the first place. Each team member should be contributing to overall success by adding value in their roles so that all of their combined efforts drive the business forward into the future.

Your employees’ productivity levels determine how much value they actually provide, and this is why it’s important to focus on ensuring that they are surrounded by a positive work environment which facilitates this.

However, it’s not just about encouraging them to be productive for short-term gain. It’s also about the long-term too, because when you have a productive workplace, this spills over into further benefits such as higher engagement levels, greater well-being and an improved culture.

Here’s why employee productivity is beneficial in the long-term for your business. 

Closeup portrait happy, smiling business woman, bank employee holding piggy bank, isolated outdoors indian autumn background. Financial savings, banking concept. Positive emotions, face expressions

Why does productivity matter?

All successful and effective organisations know how important each employee’s productivity is, and the value it brings.

When we say, ‘employee productivity’, we mean that your staff are using their hours efficiently to undertake significant and relevant tasks which drive revenue and contribute to achieving goals.

When your staff are productive in this way, your business is utilising your human resources at their full capacity, with minimal wastage.

Employee productivity is important because the amount of money a company spends on employee wages should be less than what the employee earns the company through their work.

The benefits of productivity over-time

There are many significant benefits to be gained from employee productivity, such as:

1. Greater fulfilment

When employees feel productive and are given the opportunity to actually contribute to the overall organisation, they gain a sense of purpose. This purpose can inspire them to strive to be their best.

In the Forbes article, The Why Of Work: Purpose And Meaning Really Do Matter, it was discussed that, while everyone’s sense of fulfilment differs, feeling a sense of making a difference leads to a happier and more effective workplace.

A study by Oxford Saïd faculty and the University of Oxford, entitled Employee Wellbeing, Productivity, and Firm Performance also found that worker satisfaction was correlated with profitability and customer loyalty and lower staff turnover.

You can read more about why job satisfaction matters for business here.

2. Better customer service

High levels of productivity often translate into better customer service through public-facing communication and interactions.

This is because, when employees are working well, they are undertaking the right activities to provide a holistic and fulfilling experience for each customer. When your team members are coordinated, processes run more smoothly and there is a far less chance of your customers missing out or being neglected.

As a result, these customers will be more satisfied and will become more loyal to your brand. They’re also generally more likely to tell others too.

New call-to-action

In a recent Forbes article, How Happy Employees Make Happy Customers, it was found that research supported this. Even the inspiring entrepreneur, Richard Branson, says, “if you take care of your employees, they will take care of your clients.”

3. Greater revenue generation

Your staff are an asset and an investment that is made by your business, with the aim of earning a greater return. If they are productive, then they should be yielding a strong ROI (Return On Investment) for their time and expenses.

For more information, listen to our VibeCatch podcast, The connection between employee productivity and profitability.

4. Improved engagement

When employees are more productive, they tend to be more willing to participate and be involved with the business and its activities – this is positive engagement.

Gallup, the American analytics and advisory company, claims that employees who are engaged are more likely to improve customer relationships, resulting in a potential 20% increase in sales.

If employees are not productive, they are disengaged and unmotivated, which can lead to a whole range of undesirable impacts on culture and other staff, especially over the longer term.

5. Building a positive culture

When your teams are productive and working together well over the long-term, a forward-thinking culture based on strong camaraderie starts to develop – one that’s collaborative and inspiring.

This greater sense of group morale comes from productivity, which can help improve employee well-being and overall job satisfaction.

To learn more, read Why Improving Your Corporate Culture Starts with Employee Feedback.

Of course, in the short term, having a productive workforce is important, but in the long-term, these benefits compound.

How to improve long-term productivity?

As you can see, there are a multitude of interrelated benefits of long-term productivity that spill over into so many areas of your business, such as engagement, wellbeing and improved workplace culture.

But, how do you take steps to improve productivity?

It starts with management.

In our VibeCatch Podcast episode, How leadership impacts productivity, we discuss how management can take a more active role in improving how their staff work.

Productivity in the workplace is an important aspect of every company and when top management understands this concept, success is sure to follow.

However, it takes more to measure productivity than looking at sales figures.

In a research paper conducted by the International Review of Business, titled Impact Of Employee Participation On Job Satisfaction, Employee Commitment And Employee Productivity, the authors concluded that, ‘Naturally increasing employee participation is a long-term process, which demands both attention from management side and initiative from the employee side’.

Download QWL White Paper

People are complex creatures and to gain the most insight into your employees, you need to look for deeper insights into their behaviour and feelings towards their role and your business.

How VibeCatch can help you improve productivity now and over time

To capitalise on improving your employee productivity levels and unlock all of the benefits that this creates, you must be communicating with your staff and listening to their feedback.

Vibecatch can help businesses like yours gain insights into productivity so you can make the right strategic changes today and into the future to ensure your success.

The Vibecatch platform uses scientific-based listening and learning of your internal workforce to yield better (and trackable) results, while allowing your teams to feel comfortable and safe to provide honest feedback about their levels of job satisfaction.

These insights will continually allow your business to learn and improve.

This is where the VibeCatch platform can help you

VibeCatch is a Human Resources platform based on 15 years of proven research, offering you the opportunity to make a positive difference not just for everyone around you, but your business and customers too.

It’s simple and automated, which makes checking on your culture easy to ensure that your business is optimised.

How can your business benefit from a science-based approach?

We’d love to show you, so you can see it in action for yourself.

Book an obligation-free consultation and we’ll discuss your options to demonstrate how VibeCatch can help you help everyone.

company culture diversity Employee Performance HR HR metrics HR Tech motivation QWL workplace culture employee engagement Leadership productivity continuous listening analytics growth


Posted by Juha Huttunen

Juha Huttunen
Juha is a Co-founder and the CEO of VibeCatch. A serial entrepreneur, technology enthusiast and geek with 15+ years of experience in startups, sales, leadership and growing business. To Juha, measuring improvements in performance and putting them in quantifiable and monetary terms is VibeCatch’s greatest strength.

Recent Posts

Posts by Topic

see all

Subscribe to Email Updates

Human Resources Today