Getting started with productivity management + 11 tips for improving productivity in the workplace

Ieva Sipola 2.10.2023
Getting started with productivity management

Productivity management is the art of optimizing your team’s performance to achieve more with the same resources. But what does it truly mean to manage productivity effectively, and how can businesses measure, improve, and sustain it?

Whether you’re a seasoned manager seeking to fine-tune your strategies or a newcomer looking for a solid foundation, this guide will cover the basics of productivity management and share 11 practical tips to optimize workplace efficiency.

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Table of contents:

Productivity is a ubiquitous term in today’s business environment, but what does productivity management actually mean? 

In a nutshell, productivity management means ensuring that a team or organization works as efficiently as possible. 

Productivity management involves various activities, from planning, goal setting, process optimization, resource distribution, and performance tracking. The idea is to maximize the use of existing resources to achieve the desired results as fast and well as possible.

What is productivity management?

Why is productivity important in the workplace?

Productivity management is an essential component of an organization’s success. By improving productivity, companies can boost profits, reduce costs, and gain a competitive edge.

Zooming in, productive employees are the ones helping a company achieve its goals. Therefore, measuring and improving employee performance is a big part of productivity management. 

Here’s how productivity management can improve the performance of businesses of all sizes and industries:

  • Increased efficiency − organizations can optimize their workflow and minimize wasted time and resources.
  • Reduced costs & increased profits − businesses can spot and eliminate unnecessary expenses, leading to cost savings and increased profitability.
  • Competitive edge businesses prioritizing productivity management are usually more competitive in their niche, as they can provide high-quality products or services more efficiently than their competition.
  • Satisfied employees & low turnover − productivity management can help employees feel more motivated and confident with their work, reducing employee turnover rate.

How does management affect productivity?

Managers play a crucial role in ensuring their teams work well and stay productive. But being a good manager isn’t just about pushing people to work harder or faster. A great manager understands what each team member is good at and where they struggle and helps them do their best. 

In short, managers can contribute to a more efficient and effective workforce by:

  • Offering clear leadership and guidance;
  • Monitoring performance and providing constructive feedback;
  • Allocating resources such as time, budget, and personnel; 
  • Resolving conflicts and fostering positive team dynamics.

Through all these steps, just and effective managers can improve company culture, motivating the team to grow continuously.

How does management affect productivity?

11 tips for improving productivity in the workplace

How does improving productivity work in practice? Implementing these 11 tips in your organization is an excellent place to start.

1. Define clear objectives and KPIs

Setting clear, measurable, and achievable goals for each employee or department is the first step toward improving productivity in your organization, and tracking your progress.

Your team should be involved in defining specific objectives and KPIs that align with the company’s strategic plans. These could include customer satisfaction scores, revenue per employee, project completion rates, or sales targets. 

Regularly track and analyze these KPIs to measure productivity and progress. With well-defined goals, your team will have a clear sense of purpose and direction, making improving their productivity easier.

2. Measure productivity in the workplace

To manage and improve performance, you must first learn how to measure productivity in the workplace. 

Time tracking software can provide real-time insights into your team’s performance, helping you identify bottlenecks, time-wasting activities, automation opportunities, and other improvement areas. Task management tools can also provide data about task completion rates and efficiency.

Time and productivity tracking can also be beneficial in monitoring the performance of remote employees. But be careful not to use it to micromanage or put people under the microscope, which is likely to backfire.

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3. Collect and provide feedback

Effective communication is the cornerstone of productivity management. Gather feedback from team members to get an idea of their perception of productivity. Employee input can give you valuable insights into communication issues, workflow bottlenecks, and areas that could be improved.

From the other side, schedule regular check-ins with your team to provide constructive feedback on their performance. Use the opportunity to show support and acknowledge achievements. Without criticism, mention areas that need improvement. 

Remember that recognizing and rewarding outstanding performance can be a powerful motivator which can, in turn, boost an employee’s productivity. Consider starting a rewards system to celebrate success and incentivize productivity.

4. Delegate responsibilities

Delegating effectively saves time and energy. When you share responsibilities according to individual team member’s skills and strengths, you can free up your time for more strategic tasks.

In addition, when delegating, you empower your team and inspire them to perform better. Sharing responsibilities stimulates creativity, develops skills, and helps build a culture of trust.

How to improve productivity in the workplace

5. Automate processes

Eliminating manual tasks is one of the best ways to improve productivity in the workplace. First, you must identify productivity issues or areas where time is wasted and devise ways to eliminate inefficiencies. For example, repetitive tasks can be automated, unnecessary steps can be removed, and workflows can be optimized. 

Most businesses can automate their daily work by using:

  • Email marketing automation;
  • Accounting and financial automation;
  • Customer Relationship Management (CRM) software; 
  • Social Media Management software;
  • HR and employee management software.

6. Encourage teamwork

Effective collaboration among team members is a powerful productivity precondition. Teamwork allows employees with different skills, backgrounds, and experiences to collaborate on tasks and projects. When team members bring their unique strengths to the table, it increases the overall capability of the team and boosts productivity.

Employee productivity management software often includes collaboration tools that facilitate teamwork and ensure everyone is on the same page. Such teamwork-supporting tools include team contacts, shared calendars, desk booking, project management features, and others.

7. Minimize multitasking

Multitasking is a common factor that derails productivity. A recent study by a German think tank “Next Work Innovation,” found that, on average, people in knowledge-intensive professions are interrupted at work every four minutes and try to multitask at least twice an hour. 

In addition, not all interruptions are work-based; many involve work-unrelated chatting, browsing social media, and even online shopping

Start by bringing awareness to your team about staying on task and avoiding multitasking to increase their productivity. Suggest distraction-averting tactics, like time-boxing, Pomodoro timer, distraction-blocking apps, etc. Encourage employees to dedicate set times to one single project instead of switching between tasks.

Minimize multitasking to improve productivity

8. Encourage hybrid or remote work

With reference to the previous tip, working from home is a safe option to avoid office distractions and noise. Employees will use their time more productively if they work from home as it’s in their interest to get the job done effectively and not waste time. In addition to less time spent traveling, working from home reduces lateness and time wasted chatting at the coffee machine.

In addition, by allowing hybrid or remote work, you are reducing absenteeism. When someone has caught a little cold, they don’t have to call in sick but can still do some work from home.

9. Prevent spying

While employee productivity monitoring software gives you access to your team’s browsing history throughout the workday, you should be careful not to spy on your employees. 

Spying can lead to a culture of performative work where employees “look busy”, but do less work, as they are more focused on how they appear.

We recommend batching employee productivity data and analyzing the trends and overall performance instead of individual computer usage.

10. Prioritize work-life balance

Research shows that overtime is unproductive and can harm your employees’ health. Furthermore, overworked and stressed employees may seem like working more but are actually less productive in the long run. Promote flexible work hours, remote work options, and wellness benefits to support employees’ well-being.

Always make sure that the workloads are manageable and sustainable. Employee productivity software can help you notice when team members are doing excessive work, allowing you to redistribute assignments or allocate additional resources where necessary.

11. Analyze data and adjust strategies

Regularly reviewing the data and insights from your productivity management software is a critical step for enhancing productivity. The collected data could include sales figures, customer feedback, employee performance metrics, production statistics, etc. 

Visual reports can help you process and visualize this data, providing a comprehensive overview of your team’s performance.

Once the data is analyzed, you can identify trends, patterns, and areas where productivity improvements are needed. For example, you may discover that certain processes are consistently causing delays or that specific products or services are underperforming. 

Armed with this knowledge, you can then formulate targeted strategies for improvement. These may involve process optimization, resource allocation adjustments, employee training programs, or implementing new technologies and automation.

Analyze data to improve productivity

How to manage productivity in the workplace? The secret’s out

Productivity management is art and science at the same time. You need to base your actions on continuous analysis of productivity data and performance reports. At the same time, you should always consider the qualitative aspects of productivity, such as employee satisfaction and well-being. Only by looking at qualitative and quantitative measures will you be able to paint the whole picture of workplace productivity.

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