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Define Employee Productivity

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Productivity is the driving force behind a company’s growth and profitability. According to an report, a survey revealed that U.S. employers lose about $544 billion every year due to unproductive employees. To realize a lucrative enterprise it is important to understand how productivity works.


Productivity is a measurement or calculation between inputs and outputs. Inputs include raw materials, machinery and labor; outputs are the goods or services produced. If the outputs are equivalent to the inputs, the worker is considered productive. If the same number of workers starts to produce more goods services than in a prior period, perhaps as the result in a change in working conditions, then productivity has increased.


Productivity directly affects a company’s profit. When employees are productive they accomplish more in a given amount of time. In turn, their efficiency saves their company money in time and labor. When employees are unproductive, they take longer to complete projects, which cost employers more money due to the lost time.


Productivity is linked to employee morale. When employees are happy at work they have more motivation, which increases productivity. Poor morale causes employees to be disengaged.


If employees are not given the proper resources to do their jobs easily and efficiently, their productivity will suffer. QuoStar Solutions, a technology consulting service, states that innovative technology is one way that employers can boost productivity. Having automated, electronic processes for certain tasks can free up employee time so that they can maximize their efficiency with other tasks.


Low productivity can be boosted in a number of ways. Some managers might install monitoring software that tracks what employees do all day long to try to eliminate wasted employee hours, while others will try to boost employee morale or training or invest in labor-saving devices..


Kyra Sheahan has been a writer for various publications since 2008. Her work has been featured in "The Desert Leaf" and "Kentucky Doc Magazine," covering health and wellness, environmental conservatism and DIY crafts. Sheahan holds an M.B.A. with an emphasis in finance.

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