Employee or workforce productivity is how employees – whether in-office, remote or hybrid – are assessed as to their efficiency in the performance of their jobs.
It is a particularly important consideration for businesses as most of an organization’s success relies directly upon the productivity of its workforce.
How this is evaluated will depend upon the job requirements and industry, but generally it’s based on the output of the employee within a specified period of time. Often, an employee’s productivity is evaluated based on a related average of employees performing similar work.
Simply put, productivity increases the overall efficiency of an organization. Typically, this reflects that all resources are being leveraged for optimum performance levels. In business, increases in product output will result in lower overhead and in turn provides a higher profit. Conversely, when productivity is overlooked, the result is often higher costs for production and reduced sales and profits.