How Employee Engagement Boosts Efficiency and Productivity

  Published : January 18, 2024
  Last Updated: February 6, 2024
How Employee Engagement Boosts Efficiency and Productivity


According to Gallup’s State of the Global Workplace report, 85% of the global workforce is disengaged from their jobs. That’s a sizable proportion of the workforce! Employee engagement is critical, particularly in terms of productivity. 

According to a new meta-analysis of 1.4 million employees conducted by Gallup, organizations with a high level of engagement report 22% higher productivity.

Isn’t that fantastic? Therefore, in order to increase productivity, you must first improve employee engagement. Don’t worry, we’ve got your back. 

Productivity Definition

Simply put, productivity is the amount of work done per unit of time. Measuring productivity is simple, which is why many people concentrate their efforts here. Productivity is typically calculated by measuring output over a similar time period.

Productivity Example #1 

If you produce 50 machine parts and only 35 of them function properly, you are less productive than someone who produces 35 machine parts that all function properly and do not require repairs. 

Productivity Example #2

Businesses, on the other hand, calculate productivity by comparing employees, departments, and locations, among other things. A New York office that earned $50,000 in income for a firm may be compared to another office in California that made $30,000 in the same month, making the New York office more productive.

Productivity Example #2

Productivity Example #3

Let’s say you have a social media presence and are regularly publishing new content. You spent 20 hours on social media in January and posted 200 status updates. In February, you discovered a URL shortener that reduces posting time by half. You were also able to work 20 hours that month, but you posted 400 status updates. Even though you used a tool to assist, February was the clear winner. Digital marketing and social media companies, in particular, are always on the lookout for such tools to help them improve their processes, increase their efficiency and productivity, and make the most of their man hours.

Stretching to increase productivity – whether your product is car parts or something else – can actually do more harm than good to your business. A better alternative might be to work at a slower, more deliberate pace or to find tools to assist you in avoiding the mistakes that occur when you work too quickly. 

Also Read: How to Track Team Productivity and Ways to Improve It

Productivity Formula

There are various formulas for measuring productivity at various levels, such as employees, organizations, and software. Use the simple equation below to track productivity by individual, team, or department.

labor Productivity = Total Output / Total Input

Assume you own a company that produces $50,000 in goods per week (output). This is accomplished through the use of 1,000 labor hours (input). To calculate your company’s labor productivity, multiply 50,000 by 1,000, which equals 50. 

This means that your company earns $50 for every hour of work. You could also look at labor productivity in terms of individual employee contributions. Instead of hours, the number of employees would be used as the input.

For example, if the same company has 20 employees and produces $50,000 in goods per week, you would divide $50,000 by 20, which equals 2,500. This means that each employee generated $2,500 in revenue for your company that week.

Even if you own a small business doing retail arbitrage, your labor productivity is important and should always be measured. This will allow you to be more productive with your time. 

Productivity Formula

Efficiency Definition

While productivity is defined as output per unit of time, efficiency is defined as the best possible output for each unit of time. That is, doing things correctly. You achieve your peak level of efficiency and productivity by doing things correctly.

Efficiency Example #1

Consider two people who teach online courses as an example of efficiency. The first teacher completes a course in two weeks, but the videos they recorded contain numerous errors. 

The other teacher completes 10/12 lessons in two weeks, but their work does not necessitate as many hours of editing as their counterpart’s.

Although the first teacher is more productive, the second teacher is clearly the more efficient of the two because it will take them less time to choose an online course platform and launch the course because they make fewer mistakes during the video recording process.

Efficiency Example #2 

To illustrate how efficiency translates to productivity, consider Anna, a content writer at an agency who produces 10,000 words per week while Sandra produces only 7,000 words. 

Anna appears to be more productive than Sandra. And that may be true if Anna’s error rate is low. However, if Anna’s writing necessitates 20 hours of editing and proofreading, whereas Sandra’s work is error-free and can be uploaded to the CMS instantly, Sandra is clearly far more efficient than Anna. 

Consistently, she is not only more efficient but also more productive than Anna – a fact that some observers may overlook.

Efficiency Example #3

Assume you have a manufacturing company that produces 30% more units in one week than the previous week. 

However, you later discover that 25% of the units were defective. This means that, while productivity was up, efficiency was down. 

Consider certain tactics to improve consistency and efficiency, such as better raw material selection to reduce defective units, the use of production management software, and so on. 

Also Read: Unlocking Efficiency: Your Guide to Tackling Overtime in BPO and IT Companies

Efficiency Formula

While productivity is concerned with quantity, efficiency is concerned with quality. It is possible to calculate a high productivity number for each employee in your company, but that number does not provide insight into the quality of work that you are receiving from each employee on its own. 

As previously stated, an employee may appear to be quite productive while actually producing low-quality outputs. You’ll need a standard against which to compare productivity figures. 

You can compare your current productivity to the standard level of effort required to produce the same amount of output. Divide the number of standard hours of labor by the amount of time worked, then multiply by 100. The greater the final number, the more efficient the employees.

This is the efficiency calculation formula:

Efficiency = (Standard labor Hours / Time Worked) x 100

So, if your company’s standard labor hours for a specific project are 70 and the actual amount of time worked is 82, divide 70 x 82 and multiply the result by hundred to get 85% efficiency.

How to Maintain Employee Engagement

Here are some ideas for team leaders or managers to keep their employees engaged.

  1. Provide employees with the necessary resources

Employees must have access to resources in order to remain engaged in their work. Check-in with them frequently to ensure they have everything they need to do their job. This includes ensuring they have the necessary training, materials, and tools to achieve their objectives. It is important to note that these requirements may change as a result of new tasks or responsibilities.

  1. Maintain open lines of communication

Communication is essential for upholding workplace expectations and keeping a team engaged. Check-in with your team on a regular basis to identify any productivity bottlenecks. Learn about your employees and encourage them to come to you if they have any concerns. By encouraging open communication, they are more likely to turn to you for help when they face difficulties, rather than becoming disengaged.

  1. Be specific about your expectations

Employees are more likely to be engaged when they understand their responsibilities and tasks. It can also be beneficial to revisit goals on a regular basis so that everyone is on the same page. Setting specific goals is important, but so is determining how to track progress towards those goals.

  1. Provide regular feedback to employees

Feedback keeps everyone engaged by identifying problems and brainstorming solutions. 360-degree feedback, which includes feedback from all project participants, can be especially beneficial. This may include feedback from team members and supervisors, as well as self-feedback, in which the employee assesses their own progress towards goals.

  1. Adjust based on feedback

Listening to feedback is important, but improving based on feedback is also necessary for engagement to be maintained. Schedule regular meetings to assess issues and identify ways for you and your team to improve based on feedback.

Also Read: The Ultimate Guide To Prepare Engagement Plan For Employees


Employee engagement is the secret sauce that makes a workplace productive and efficient. Employees tend to give their best effort when they feel valued, motivated, and connected to their work. This translates to increased productivity, higher work quality, and a happier workplace. Employees who are engaged are more likely to stay with their company, lowering turnover costs. They are also more creative, which can lead to continuous improvement. So it’s not just about having happy employees; it’s also about having a healthier bottom line for businesses. Companies that invest in employee engagement can create a win-win situation for all parties involved.

Frequently Asked Questions

Q1. Can a high level of productivity and a high level of efficiency coexist?

Yes, it is possible to be both productive and efficient, but they do not always go hand in hand. To achieve this balance, effective resource management, streamlined processes, and continuous improvement efforts are frequently required.

Q2. What is the role of technology in increasing productivity and efficiency?

Technology has the potential to significantly improve both productivity and efficiency. Automation, data analytics, and advanced software tools can improve overall performance by streamlining processes, reducing errors, and providing valuable insights for resource allocation decisions.

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