Employee productivity statistics: Everything you need to know

Employee productivity measures how much your employees get done in a given period. The higher the productivity rate, the better the company should be doing.

But are you and your team members following trends or behaving in ways that diminish productivity? What do the numbers say about productivity in today’s workplaces? 

In this guide, we show you which employee productivity statistics matter most and why. Then, we share tips to help you boost productivity and team performance at your business.

How we researched this topic

We analyzed the latest national employment data, statistics, and workplace analytics to bring you data-backed, accurate insights. 

Important note: Employee productivity – the measure of output of individual workers – is different from labor productivity. Labor productivity measures economic output for a given amount of labor and typically looks at the economy as a whole. In general, it’s easier to obtain labor productivity stats – such as via government sources like the Bureau of Labor Statistics (BLS) – than employee productivity stats.

Key takeaways

• For companies that prioritize organizational support and work-life balance, hybrid and remote work arrangements have increased productivity.

• Employee motivation goes hand-in-hand with efficiency: The best workers meaningfully contribute to positive work environments, which naturally boost productivity. By contrast, distracted employees – especially office workers – are much less productive.

• Skills-based hiring and assessments are effective for building productive teams by matching employee strengths to their roles.

Top 11 employee productivity statistics

1. Office workers are productive only 60% of the time

While data on employee productivity in different industries isn’t generally available, it’s estimated that office workers (across all sectors) are productive only about 60% of the time. That means almost a third of their day is unproductive.

2. Remote workers say they’re more productive

Employees working from home report higher productivity levels, experiencing fewer interruptions and better work-life balance. 

Research backs this up. Studies have found that people working from home are generally more productive, despite facing common challenges like social isolation and the difficulty of gaining promotions.

3. Employees are interrupted every three minutes

One of the biggest challenges to productivity is nonstop interruption.

Researchers at the University of Irvine, California, found that employees are interrupted every three minutes on average – and it can take up to 23 minutes to regain focus. This interruption cycle can be deadly for productivity. 

4. Companies that engage their employees are 17% more productive

Companies with engaged employees report 17% higher productivity. Why? Because engaged employees tend to invest more effort in their work, are less likely to experience burnout, and contribute to more positive workplaces.

5. Happier employees are more productive

Satisfied employees are 12% more productive, suggesting workplace well-being is good for boosting not only morale but overall workforce performance. 

6. Stress-induced productivity losses are incredibly expensive

On the other side of the coin, there’s workplace stress, which is detrimental to productivity. Stress costs employers a staggering $500 billion per year, largely thanks to stress-related productivity losses, absenteeism, and physical and mental health issues in workers. 

7. Work overload decreases productivity by more than two-thirds

Workers who have too much on their plates can cause a decrease in productivity of up to 68%. 

8. Automation can be a blessing for employee productivity

Nearly three-quarters of workers across various industries feel they could get at least 30% more done each day if they had access to more automation tools. Automation allows employees to focus on higher-value tasks by eliminating repetitive tasks, leading to better outcomes, increased engagement, and higher job satisfaction. 

9. Meetings mess with productivity

70% of employees agree they would be more productive if they had fewer meetings. Research also shows that 70% of meetings are unproductive, and when meetings are roughly half as long as usual, productivity can increase by 71%.

10. Messages and emails can hamper employee productivity

Notifications from communication channels, such as work instant-messaging platforms and email, are one of the biggest distractions for today’s workers. In fact, studies have shown that employees spend roughly 90 minutes per day checking emails alone. This time drain can seriously affect productivity. 

11. Training is critical for driving productivity

The World Economic Forum found that only half of employees get the training they need to maintain or increase their productivity. Additionally, 80% of employees surveyed by TalentLMS said training was essential for their productivity.

12. Work-life balance improves productivity. 

85% of companies that prioritize work-life balance experience higher productivity. 

13. Productive employees tend to use AI and automation

A survey by Slack found that the most productive workers are more than twice as likely to use AI than their less productive coworkers. 

In addition, 62% of employees who use automation get more done – “in less time and with fewer resources,” according to Slack – than those who don’t. Automation saves these workers roughly 3.6 hours per week each.

How to increase employee productivity

Here are six strategies to help you boost productivity in your business:

1. Minimize interruptions and distractions 

These hinder productivity, so keep them to a minimum at your workplace. Encourage your employees to enable “Do Not Disturb” mode in workplace platforms like Slack when they’re working on important or time-sensitive tasks. 

Also, teach your employees to use time-blocking – e.g., working for two hours on specific tasks without looking at emails or messages, then spending 10 minutes checking notifications.  

Most importantly, encourage employees to set boundaries during their workday. For instance, they can tell others when they’d like to be left to work independently – e.g., from 10am-12pm each day – so they aren’t distracted.

2. Offer flexibility

Employees with a healthy work-life balance are more likely to be more productive. Plus, remote workers report higher levels of productivity. So, try offering remote or hybrid work options to give your team the freedom to balance their personal and professional responsibilities. If this isn’t possible at your company, consider offering flexible work hours. 

3. Streamline meetings

Meetings can drain productivity, especially if they aren’t structured or drag on for longer than necessary. Keep meetings short, agenda-driven, and focused on essential topics to respect employees’ time. 

4. Use technology

Digital tools like project management software, time-tracking systems, automation software, and AI can help boost productivity by eliminating repetitive tasks and simplifying workflows. This frees up your team’s time to be spent on more important work.

5. Prioritize training and development 

The stats prove that most productive teams prioritize continuous skill development. Offer your employees access to professional development courses or programs, and provide training that aligns with employees’ career goals and job roles. 

6. Track and measure employee productivity with the right data

Implementing strategies to increase productivity is essential, but so is tracking the success of those initiatives. Of course, the best way to do this is by measuring employee productivity over time. 

Strategic HR data analysis can help you do this. We recommend tracking performance metrics like output per hour, project completion times, and quality of work. Monitor these metrics closely and regularly – e.g., weekly to spot short-term trends or every quarter to assess longer-term impact.

Skills-based assessments: Another key to unlocking higher productivity

Gallup found that employees who understand their strengths are 7.8% more productive, while teams that operate according to workers’ strengths are 12.5% more productive. It checks out: When employees are able to use their skills and strengths each day, they’re more likely to perform well and feel satisfied with their work – both essential to productivity.

This is where skills-based assessments – like TestGorilla’s – become key. They enable you to evaluate individuals’ skills, cognitive abilities, personality traits, and more so you can make better hiring decisions and tailor your productivity strategies. 

You can ensure your candidates possess the skills required for your open roles, which translates to more productivity-ready employees. Plus, by understanding each employee’s strengths, you can allocate tasks that align with individual skill sets, enhancing overall productivity.

Level up employee productivity with TestGorilla’s talent assessments

Understanding the key statistics behind what helps and hinders productivity makes it easier to develop and implement strategies to boost productivity at your workplace. From minimizing distractions and streamlining meetings to prioritizing continuous learning and using AI and automation, small changes can make a big impact. 

Beyond this, TestGorilla’s skills assessments can help you identify candidates with the right capabilities to meet your company’s productivity goals. Get started with a free TestGorilla plan or schedule a demo today.

FAQs

What is the employee productivity ratio?

To calculate the employee productivity ratio, divide the selected output by the input. For example, a production output of 1,500 units produced with an input of 300 hours worked yields a productivity ratio of 5 units per hour.

What is the percentage of employee productivity?

Employee productivity is generally less than 60%, and most employees believe working from home increases their productivity.

What is the ideal productivity rate?

A good productivity percentage means that workers spend approximately three-quarters (75%) of their working hours working and a quarter (25%) on breaks.