Employee productivity – it’s something that you might not think about on a daily basis, but it’s something that greatly affects employees, employers and HR teams – especially during a recession.
While we all have days that are more productive than others, as well as days that we slack off, most workers usually consider themselves to be generally productive. However, many people are finding that the current economic recession could be having an effect on employee productivity.
Of course the recession has forced employers to take a closer look at their company and their workforce, often leaving them to make tough decisions. Many employers are losing profit, forcing them to cut back on pay raises and in some cases make multiple layoffs.
Amid a lower budget and smaller workforce, HR teams are being forced to do more with less, meaning they’re certainly taking note of exactly who is being productive, and therefore an asset to the company, and who is falling behind, therefore easier to get rid of.
But perhaps the majority of the burden has been put on employees themselves. Some people think the recession has increased employee productivity, because people who are scared of losing their jobs are going to work harder in hopes of remaining employed. However, some workers are so scared of losing their jobs that it’s getting in the way of their everyday tasks, including work. And the statistics state that either theory could prove true.
Earlier this month, the Department of Labor found that productivity – in this case a measure of how much an employee produces for each hour worked – increased at an annual rate of 6.4 percent. This was a bigger increase than expected, after productivity rose by only .3 percent during the previous three months. During Q2, productivity grew at the fastest rate in nearly six years, compared with a 1.8 percent increase during Q2 2008, which at the time was the biggest raise in a year.
At the same time, unit labor costs, or the amount companies paid for the extra work being done by employees, decreased by 5.8 percent, more than double what was expected. That means despite job cuts, employees are filling in for their lost co-workers and doing more work, and in most cases for less money. Overall, hourly compensation has dropped by 2.2 percent so far this year, although it increased by two-tenths of a percent during Q2.
On the other hand, a study from the Corporate Executive Board found there has been a substantial decline in employee engagement, which has resulted in as much as a 5 percent reduction in employee productivity.
It’s no secret that the recession has dampened the mood of many people – not just in America, but throughout the world – and several signs point to the fact that a depressed worker often makes a poor worker. People who are depressed generally show up to work later, get fewer things accomplished, leave early and use more sick days.
A recent survey by Leger Marketing found that the majority of working Canadians with depression spend an average of two hours per day on non-work related activities and 42 percent leave work early. About 73 percent said they’re worried that a decrease in work performance could lead to a layoff. About 70 percent said depression has disrupted their career at some point, while 35 percent have quit a job and 25 percent have lost a job.
So what exactly is it that makes an employee productive? Some people say higher pay helps, but others say the two don’t correlate, as most employees don’t always calculate the monetary value of everything they do. Being treated fairly by superiors and being praised for good work seem to help employee productivity, as does having a healthy office environment where employees can communicate and feel comfortable, and having the right tools necessary to do the job.
Sometimes the day of the week is even a factor. Tuesday is traditionally the most productive day of the week, as Mondays often serve as a catch-up day following the weekend, and most companies hold scheduled meetings on Mondays. Of course, Friday is viewed as the least productive day of the week, with employees too busy focusing on the weekend to get much done.
A poll released last year by Accountemps found that 57 percent of employers said Tuesday is the most productive day, while only 12 percent said Monday was the most productive day. Wednesday and Thursday was the most productive day for 11 percent of employers, while only 3 percent found Friday to be the most productive.
Some employers are taking measures to try to boost employee productivity, such as focusing more on fostering positive office relationships and letting workers know when they’ve done a good job. Others are trying to make employees more comfortable, whether that’s by allowing them to take a short nap in the middle of the day or work from home.
For instance, Cisco, which designs and sells networking and communications technology and services, has a program that allows many of its employees to work virtually. The company’s recent Teleworker Survey found that about 69 percent of employees cited higher productivity when working remote and 75 percent said the timeliness of their work improved. On top of that, 67 percent said their overall work quality actually improved while telecommuting, and 80 percent said they had an overall improved quality of life.
What do you think? Is the economy helping or hindering employee productivity?
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