Productivity is a popular buzzword because productive employees will get more work done more quickly, which makes the company more profitable. Most leaders hope that their employees happily work away, always organized and productive, just like bees in a hive. Leaders continually ask how to increase employee productivity and improve employee efficiency without sacrificing well-being.

But recent research shows that many employees are more like sloths than bees, slowly doing the bare minimum level of work. To put it in perspective, only 7% of employees feel productive in the workplace, and studies show that office employees are only productive for 31% of their workday (or about three hours each day).

Let's emphasize this now: this does not mean that employees are lazy. The truth is,unproductive people are more a result of the workplace than their own lack of engagement.

So how can you improve employee productivity? How can you create a healthy buzz of productivity around your office hive? What can you do to encourage employees to stay motivated and engaged with their work? First, let's take a look at what productivity is, and then we'll go over a few ideas to improve productivity in the workplace.

What is employee productivity and why it matters

Employee productivity is a measure of the efficiency and effectiveness of the work that employees do. When productivity is high, your workforce regularly produces high-quality work in a short amount of time. Understanding this metric is essential if you're considering how to improve productivity in the workplace or how to increase productivity of employees.

There's a fine line between busy and productive, but it's an important distinction. Productive employees do great work that impacts the company—busy employees spend a lot of time on a lot of projects that may not be worth the investment.

How employee engagement impacts productivity

Employee engagement is the level of mental and emotional investment an employee has for their work and their company. Engaged employees are self-motivated, collaborative, responsible, and hard working. They handle challenges well and often go above and beyond what's expected of them.

Just like productivity, engagement leads to some amazing benefits:

• 18% higher productivity
• 10% higher customer satisfaction
• 23% higher profitability
• 43% lower turnover
• 81% less absenteeism
• 143% better performance vs competitors

In short, engaged teams tend to increase employee productivity and boost employee productivity.

How work-related stress can improve employee productivity

Engagement is foundational to business success because engaged employees are dynamic, responsible, and focused—here are some ways that those attributes translate to increased productivity. These engagement-driven behaviors are among the most effective ways to improve productivity in the workplace. Employees who are more present

Engagement lowers absenteeism and turnover, leading to organizations full of employees who are consistently present at work. This leads to more work getting done at a higher level, which naturally increases productivity—not to mention the money savings of having a low turnover rate! Employees who innovate

Engaged employees are naturally more likely to put effort into their work. Instead of sinking into the monotony of daily work and putting in the bare minimum effort, engaged employees will strive to approach their tasks in unique and improved ways. Employees who are satisfied

When someone is engaged in their work, they enjoy the time they spend on it more. And when someone is happier and more satisfied with their work, they're going to put more effort into it, leading to higher productivity. Employees who care

When employees are engaged, they care about their work; they care about the success of the company and the impact of what they each do. When employees don't care, productivity is the last thing on their mind—but when they do care, productivity goes up.

How work-related stress can reduce employee productivity

Over 41 % of employees say that stress makes them feel less productive, and stress is more common than ever in the workplace:

• 83% of U.S. workers suffer from work-related stress.
• 39% of U.S. workers say that their workload is the main cause of stress
• 52% of employees feel burned out
• Job stress costs the U.S. industry over $300 billion in reduced productivity and absenteeism

Stress and mental health are big parts of productivity—employees have to feel comfortable, confident, and capable in order to do their best work. Addressing stress is central to how to improve employee productivity over the long term.

How to improve employee productivity in the workplace

So now that we know the importance of engagement and well-being, let's get into the meat of how to motivate employees to be productive. Here are practical ideas to improve productivity in the workplace and proven approaches for how to increase productivity in the workplace.

1. Set strict rules for communication

If your employees answer emails or chats when they're off work, put a stop to it. Make sure every employee, from the lowest to the highest level, has time to relax and unwind. Keeping work-related communication strictly within business hours will help improve workforce productivity. This is a simple step to boost employee productivity.

2. Offer flexible work hours

Offer flexible work hours or work sites to fit different employee circumstances. For some people, a long commute can be a huge source of stress. For others, a 9 to 5 shift might make their lives more difficult. If you can, let employees choose what's best for them. That choice can help eliminate stress, which raises productivity. Flexible options are among the most reliable ways to improve productivity in the workplace.

3. Offer wellness programs

Create wellness programs and then SUPPORT them. A lot of businesses have wellness programs, but many employees don't take advantage of them. Participate in them yourself to set a good example, and incentivize employees to take part. Never make employees feel like they're wasting time if they use work time to meditate, take walks, or exercise. Wellness support can increase employee productivity by reducing stressors.

4. Provide extra PTO for mental health days

Encourage employees to take time off when they need it. A few days off each year to mitigate stress is much better than an employee quitting because the stress has built up too much. This proactive approach is key to how to increase employee productivity without burnout.

5. Lower overall stress

Stress is extremely common for employees. While a certain amount of healthy stress is to be expected at work, unhealthy stress doesn't have to be a part of your workplace. Remove any unwarranted stress within the workplace that can take a toll on employees' mental and physical health. Reducing unnecessary pressure is central to how to improve productivity in the workplace.

6. Reduce burnout

Don't let your employees get burned out. Burnout is created by prolonged feelings of work-related stress, and it creates feelings of disengagement and apathy. Research shows that 61% of employees are burned out on the job, which costs the U.S. $300 billion each year in absenteeism, turnover, and diminished productivity. When you manage workload thoughtfully, you boost employee productivity and sustain performance.

7. Give employees meaningful work

Align workplace goals and missions with employee work. The lack of purpose or excitement at work will lead to employee disengagement, and studies have shown that 85% of employees are at least somewhat disengaged at work on a regular basis. When you align individual work with organizational purposes and values, employee engagement can increase by as much as 49%! Clarity of purpose is one of the classic ideas to improve productivity in the workplace.

8. Give employees recognition

Create a culture of employee recognition that encourages collaboration and positivity. Did you know that 40% of employees would put more energy into their work if they were recognized more? When you create a culture that celebrates the people around you, everyone is happier and more excited to be there. When employees are engaged and happy at work, it can increase employee productivity by as much as 17%, and profitability increases by nearly 21%.

9. Offer career growth opportunities

Provide learning and development opportunities. Employees will feel more invested in the work they do. They'll also feel like you appreciate them more, which is the single highest driver of engagement! Career development is a practical answer to how to increase productivity of employees.

10. Enhance your workplace environment

When it comes to physical workplace conditions, make sure your office has plenty of natural light and plant life around each room. Ensure that everyone has ergonomic office equipment (whether they work from the office or from home). Thoughtful environments improve employee efficiency and comfort.

11. Provide training

Ensure that employees get any and all training they need to do their jobs. Employees who don't know how to effectively do their jobs will be more stressed and less productive. Having a good onboarding process can help show your support for mental well-being while preventing costly mistakes. Targeted training is one of the most effective ways to improve productivity in the workplace.

12. Stop micromanaging

Learn how each employee prefers to be managed. Don't micromanage employees who work best with limited oversight. And don't ignore employees who crave additional guidance. Employees who are comfortable at work, both physically and mentally, will be empowered to do their best work. Autonomy often helps increase employee productivity by unleashing initiative.

13. Give feedback

Regular, constructive feedback clarifies expectations and motivates individuals by recognizing their efforts and guiding their growth. For feedback to be effective, it should be timely, specific, and actionable, enabling employees to understand exactly what they are doing well and what needs improvement. Managers should also create an environment where feedback is a two-way street. This practice helps boost employee productivity and enhances engagement and job satisfaction, as employees feel valued and understood.

14. Celebrate success

Celebrating success is a powerful method to boost employee productivity in the workplace. Recognizing and rewarding the achievements of teams and individuals fuels their motivation and builds a positive workplace culture that values hard work and results. Make the recognition timely and aligned with the accomplishments it honors to help employees feel genuinely appreciated for their specific contributions.

15. Set realistic deadlines

Setting realistic deadlines is essential to improving employee productivity in the workplace. Unrealistic timeframes can lead to stress, burnout, and compromised quality of work. By establishing deadlines that align with the complexity of tasks and the capabilities of the team, managers can foster a sense of control and clarity among employees, enabling them to focus their efforts to be more productive.

Start improving employee productivity today

Focusing solely on productivity metrics without considering employee needs can backfire—damaging morale, company culture, and ultimately productivity itself.

To truly improve employee productivity, start by building a supportive, employee-centric workplace. When your team feels valued and empowered, they're more engaged, motivated, and ready to perform at their best. If you're exploring how to increase productivity in the workplace, focus on people-first practices that improve employee efficiency. These strategies show how to increase employee productivity sustainably.

Schedule a demo with Awardco and discover how our solutions can help you build a thriving culture and significantly improve employee productivity.

Frequently Asked Questions

Question: What’s the difference between being “busy” and being “productive”?

Short answer: Productivity is about delivering high-quality work that meaningfully advances company goals in less time, while busyness is just activity. Busy employees juggle many tasks that may not be worth the investment; productive employees focus on the right work and produce outcomes that matter. The article frames employee productivity as a measure of efficiency and effectiveness—quality output delivered promptly—highlighting that true productivity impacts the business, not just calendars.

Question: Are low productivity levels mainly an employee problem or a workplace problem?

Short answer: Mostly a workplace problem. Despite headlines about “sloth-like” output—only 7% of employees feel productive and office workers average about three productive hours a day—the article emphasizes that unproductive people are more a result of the workplace than individual laziness. Factors like unclear priorities, constant after-hours communication, high stress, lack of recognition, and limited autonomy reduce engagement and, in turn, productivity. Building supportive, people-first environments is the lever that sustainably boosts output.

Question: How does employee engagement increase productivity in practice?

Short answer: Engagement elevates focus, ownership, and energy, which translate directly into results. The article cites gains tied to engagement—18% higher productivity, 10% higher customer satisfaction, 23% higher profitability, 43% lower turnover, 81% less absenteeism, and up to 143% better performance versus competitors. Practically, engaged employees:

• Show up consistently (lower absenteeism and turnover), so more work gets done reliably.
• Innovate rather than settle for the bare minimum.
• Feel satisfied, which fuels extra effort and quality.
• Care about outcomes, aligning their day-to-day work with company success.

Question: In what ways does stress affect productivity, and what should managers do about it?

Short answer: Excessive or chronic stress depresses performance, attendance, and quality. Over 41% of employees say stress makes them less productive; 83% of U.S. workers report work-related stress; 52% feel burned out; and job stress costs U.S. industry hundreds of billions annually in lost productivity and absenteeism. Managers should:

• Set strict boundaries on after-hours communication to protect recovery.
• Offer flexible hours/locations to reduce avoidable stressors.
• Provide wellness programs and encourage using them.
• Grant extra PTO for mental health days.
• Manage workloads to reduce burnout and set realistic deadlines.
• These steps lower unhealthy stress, which helps employees feel capable and do their best work.

Question: Where should we start—what are the highest-impact, practical actions from the list?

Short answer: Combine quick policy changes with cultural habits, then invest in foundations.

• Quick wins (start now):
  • Set clear no-after-hours comms rules (1).
  • Give timely recognition and celebrate wins (8, 14).
  • Stop micromanaging; tailor oversight to preferences (12).
  • Set realistic deadlines and clarify scope (15).
  • Make feedback two-way, specific, and actionable (13).
• Near-term (this quarter):
  • Offer flexible schedules/locations (2).
  • Add mental-health PTO (4).
• Foundational (build over time):
  • Launch supported wellness programs (3) and reduce systemic stress/burnout (5, 6).
  • Align roles to meaningful company goals (7).
  • Expand career growth and training (9, 11).
  • Improve ergonomic, well-lit, plant-rich workspaces (10).
  • This sequence boosts engagement quickly while laying the groundwork for sustained productivity.