The Importance of Productivity in the Workplace

Understanding the importance of workplace productivity is beneficial to any organization. Since productivity is determined by how efficiently one uses its available resources to produce profit via goods or services, analyzing it and then acting accordingly leads to increased revenue and lower overhead costs. It is essentially the lifeblood of the performance of an organization.Importance of productivity

The more productive a company is, the better it runs overall. In this article, we elaborate on the impact productivity has on different areas of an organization.


Productivity is not solely dependent on the performance of employees but also about the operation methods being used. It is not just solved by simply asking workers to do more and in less time. Actions to develop the work process should also be considered. Improving this area of the organization also causes productivity to improve which, in turn, saves time.

Saving time allows employees to perform other tasks that will help benefit them in the long run such as planning ahead and creating work strategies. It is a cycle that benefits itself that ultimately makes the company run smoother.


One major area that is affected by productivity is an organization’s financial standing. When a company is paying multiple employees who do not produce at a profitable rate, this may bring the company in financial jeopardy. Hiring the right candidates and proper training reduces the chances of this from happening.

Implementing improved screening processes and employee evaluations are other factors that can avoid financial loss. Paying for your workers’ medical examinations or purchasing hair drug testing kits are small yet effective ways to ensure your workers are healthy, generally boosting overall productivity.


Productivity and morale have a co-dependent relationship with one another. When morale is low, productivity is low. When morale is high, productivity is high. Stress plays a big factor in workplace environment, and when one employee sees another one slacking off, their morale and productivity is affected. This might continue on as a dangerous cycle, lowering one employee’s morale to another’s.

Productive operations and setting up a system that boosts morale is one way to maintain great productivity levels. If employees are able to finish their work in a certain amount of time, they will feel satisfied. However, not doing so might frustrate them. Utilizing a work system that keeps them productive so that they can finish their work is a way to improve company morale.


A company’s relationships with their customers are improved when they can provide goods and services within the customer’s’ expected time frame. Consistently productive employees will leave an impression on customers, causing them to speak positively of their experience with the organization. This being spread via word of mouth is likely to provide a significant increase in the company’s profits. Also, creating the impression that all employees are productive just shows them how well-run the company is, which is a factor that may attract new customers.

When workplace productivity is improved, more things get done in lesser time. This is an invaluable aspect in a company and should never be overlooked. Progress often comes hand in hand with it. Through this article, we hope that you gain a better understanding of the importance of productivity at work.