What is productivity? A complete guide for improving yours

May 5, 2021 - 18 min read

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What is productivity?

Why is productivity important?

The benefits of improved productivity

What are some examples of productivity?

How does productivity work?

How can you be more productive?

Best productivity books

Time to hone your productivity skills

For many of us, being productive feels like a badge of honor.

Our productivity can sometimes seem like a direct reflection of our success in life. But, that’s only part of why productivity feels like such a major focus at the office. 

The truth is, checking off our to-do list is not all productivity is about. While personal productivity contributes to business productivity, these two types of productivity are defined very differently.

When you and your boss have different definitions of what’s productive, things can get confusing quickly. 

In this article, we’ll explore what productivity is, how it works, and how to be more productive.

What is productivity?

When most people think of productivity, they think about what they’re personally getting done. But, you may have also noticed that governments evaluate productivity levels, too. Are they counting how many things you check off your to-do list? 

Not quite. Productivity can mean different things in different contexts. Understanding the different layers of productivity can help you see how checking a task off your list contributes to your business’s productivity and even your country’s productivity levels. 

Personal productivity can reflect how efficient you are at completing tasks well.

Venn diagram showing - what is productivity

Unfortunately, personal productivity can be hard to pin down, especially now that many people don’t do repetitive tasks — it was much easier when productivity could be measured by how many widgets a person built per hour.

Personal productivity is a topic of some disagreement in the age of knowledge work. Creativity and innovation, even excellent customer service, doesn’t neatly sum up to an efficiency metric. Nonetheless, it’s useful to think about what productivity means in your role and type of work, then try to set the conditions to improve it — whatever the metric. 

Business productivity usually refers to productivity as revenue divided by hours worked. 

For businesses and countries, productivity measures how well they turn labor and materials (the input) into goods and services (the output).

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Why is productivity important?

A company can't be productive without employees being able to effectively and efficiently do the type of work that drives revenue for the company. Fostering this employee productivity is an essential part of excelling at work and driving business success. Plus, an employee who feels personally productive often experiences more happiness and fulfillment, too.

2020 was a huge year for transforming productivity. 

As many of us adjusted to working from home, workers spent 12% less time in large meetings and 9% more time interacting with customers. That helped contribute to an increase in overall productivity across some US companies by 47%.

For businesses, productivity signifies the health and growth of the company. A productive business can expand, offering new services and potentially lowering prices. 

For employees, productivity is important because it keeps us progressing toward our full potential. Being productive allows us to manage our work, home lives, hobbies, and family commitments with ease and peace of mind.

The benefits of improved productivity

Being more productive is a common goal, but it’s also a goal that many people struggle with. 

Only 21% of UK office workers report that they are productive all day, and the average actual productive time in an 8-hour workday is 2 hours and 53 minutes. 

Naturally, the challenges employees face with productivity ultimately reflect in the company’s overall output, too.

By being more personally productive, people can complete their work efficiently, tackle errands quicker, and enjoy more free time. 

Productivity can help employees enforce healthy work/life boundaries and feel more in control. Some people may even enjoy their work more when they’re productive, and they’re likely to feel less stressed, too.

Traditionally we associate productivity with performance. Each person’s productivity and performance contributes to business success, leading to lower prices, higher profitability, and potentially higher pay for employees. 

Companies like NetApp use coaching to improve performance and productivity. When a business has high productivity levels, it uses its resources more efficiently and is poised for growth and expansion.

As business and industry productivity increase, their native country’s overall productivity increases, too. 

When businesses in a country are producing and providing more goods and services, the country’s economic output is higher than its input. This increases the gross domestic product (GDP), which indicates economic growth. High economic growth leads to a high standard of living, which benefits the whole country.

That means improving your personal productivity skills can contribute to the economic growth of the whole country!

What are some examples of productivity?

Whether we’re considering personal productivity or business productivity, it always comes down to getting the most output (or benefit) from the input. For businesses, input can mean capital, materials, or labor cost. For people, input usually represents time, effort, and dedication.

Motivating employees is a key part of labor productivity, and being motivated and inspired contributes to your personal productivity. 

There are many ways to foster motivation and increase productivity on a personal level and an organizational level. 

For personal productivity, there are many techniques that can increase how much you get done in a day without compromising quality. Some popular ones include:

  • Breaking large projects into smaller tasks
  • Using the Pomodoro technique (work in short 25-minute intervals)
  • Developing a restorative morning routine
  • Focusing your to-do list on the most important tasks

Businesses can use gamification to motivate employees and increase employee engagement. 

When Microsoft added gamification to their sales processes, they saw a 10% productivity increase. Plus, 78% of their agents stated they felt empowered and encouraged to perform better at work.

percent of employees who think they would be more productive if work were more gamefied

Certain benefits can also increase business productivity. Software company myosh has seen significant productivity gains and cost benefits to maintaining a remote work policy, even before COVID-19. 

Understanding what motivates your employees and developing a strong company culture can ultimately drive productivity, performance, and profitability.

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How does productivity work?

Most of us understand how personal productivity makes our lives better, but what about corporate or national productivity?

When you’re productive, it takes less time, effort, and mental demand to achieve what you want or create a high-quality finished product. 

When the output is the same (achieving what you want), but it takes less input to accomplish it (time, effort, and mental effort), you have a high productivity rate. 

It’s the same for businesses. 

When businesses produce a larger amount of high-quality output (goods and services) with less input (labor, capital, and materials), they’re more productive. 

In today’s business, it is hard for individuals or businesses to compare “the same” output as less and less value delivered is standard units of product. However, at the business level, in aggregate, you can compare the level of effort, time, and resources used to produce an equivalent output of sales or revenue. 

Businesses measure productivity by taking total revenue in a particular period (the output) and dividing that amount by the total amount of hours worked in the same period (the input). This is called the labor productivity formula.

labor productivity formula - what is productivity

Traditionally, higher workforce productivity meant employees are working more efficiently and creating more goods in less time. This leads to increased profits, since they’re spending less to make something and selling as much or more of it.

Meanwhile, low productivity or partial productivity can indicate issues in the production process. 

Even when employee engagement is high, if the production process slows due to a lack of materials or capital, productivity levels will drop. This is because labor cost (or workforce productivity) is only one input that goes into the labor productivity formula.

Governments measure multiple productivity factors to understand the overall economic productivity and recognize productivity trends. 

For example, one 2020 productivity trend was working from home, and the economic data shows that GDP could increase if employees continued to work remotely 1-2X a week.

While one productive person makes a difference, national GDP and corporate productivity rely on extensive employee engagement to deliver results.

How can you be more productive?

Now that you see how your personal productivity affects the whole system, you’re likely feeling inspired to become more productive at work. It helps to know that your role makes a difference! 

Here are some valuable tips to help you be more productive at work. 

Gamify your tasks

Turn checking off your to-do list into a challenge, and get your co-workers involved, too.

89% of employees feel like gamification would make them more productive at work, so increase your productivity level with some healthy competition. Create a productivity group and set prizes for whoever checks the most off their to-do list in a day or week. 

Take breaks

While deep work can be powerful, taking breaks ultimately helps us be more productive. Using the Pomodoro technique can remind you to step away from your desk, stretch, and refocus your mind. 

Taking a short break refreshes your perspective and helps you discover new ways of solving problems.

Define your goals

Knowing your objectives can help you stay on track and get more done.

Keeping your goals top of mind and creating a short to-do list that focuses on an overarching goal can help you stay motivated. 

Discover when you’re most productive 

Track your daily output to see when you’re most productive.

productivity by time of day - - what is productivity

Maybe you work on creative tasks best in the morning, but you save administrative tasks for the afternoon. Understanding how you work best can help you schedule your day for peak productivity.

Communicate with your team

You don’t need to figure everything out on your own. 

Reaching out to a team member can help you get answers quickly and be more productive. A quick message or phone call may be all you need to keep moving forward.

Ready to unlock the potential in your organization?

Best productivity books

When it comes to improving your personal productivity, these suggestions are just the tip of the iceberg. 

If you’re ready to dive in and transform your productivity, check out these three influential productivity books.

Essentialism

If you feel like you’re always busy but still not productive, Essentialism: The Disciplined Pursuit of Less by Greg McKeown is for you. 

Essentialism emphasizes pursuing fewer things and doing them very well. Rather than checking off a long to-do list but doing subpar work, Essentialism recommends a minimalist approach to productivity. 

Deep Work

If distractions are your downfall, Deep Work: Rules for Focused Success in a Distracted World

by Cal Newport is a must-read.

Deep Work helps you master the art of focus. In Deep Work, you’ll discover how to learn rapidly and apply your knowledge right away, without succumbing to distractions.

Eat That Frog

Prioritizing work can be a challenge. Eat That Frog!: 21 Great Ways to Stop Procrastinating and Get More Done in Less Time by Brian Tracy makes prioritization intuitive and simple. 

This book is a powerful tool to help you transform your productivity. In Eat That Frog, you’ll learn how to tackle the toughest task first thing in the morning.

Time to hone your productivity skills

Now that you know how personal productivity fits into corporate productivity, you’re ready to boost your productivity skills! 

Not only will your newfound productivity abilities help the economy, but they’ll also make every area of your life easier to manage, too.

If you find yourself procrastinating or struggling to stay focused, you’re not alone. Coaching with BetterUp can help you increase your productivity levels.

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Published May 5, 2021

Shonna Waters, PhD

Vice President of Alliance Solutions

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