University of the Visayas

REFLECTION OF CORE VALUES:

ENVIRONMENTALISM
MAXIMIZING WORKPLACE PRESENTED BY:

PRODUCTIVITY AND EFFICIENCY DR. MICHELLE FLOR B. ABELLA, CLSSYB

INSTRUCTOR
LEARNING OBJECTIVES
At the end of this lesson, the students
are expected to:
• Internalize the deeper insights of the
impact of workplace productivity to
organizational performance
• Determine the importance and key
takeaways of workplace productivity
• Recognize the challenges which create
barriers to workplace productivity
• Identity the productivity metrics and
KPIs as tools for the improvement of the
workplace productivity
 WORKPLACE PRODUCTIVITY

Workplace productivity is the efficiency

with which you and your team complete
workplace tasks.

A more efficient team will complete their

allocated work within a shorter time
frame. Time that is freed up by more
efficient processes can then be filled
with other similar tasks or dedicated to
new projects.

This increase in output improves

workplace productivity.
 WORKPLACE PRODUCTIVITY

However, with increased productivity, it’s

crucial to be mindful of work quality.
Being productive is not about churning
out a high volume of low-quality work.

To increase productivity, your team

needs to produce a good quantity of
high-quality work.

It’s important to effectively manage

your team to maintain the same
standard of work at a higher output.
 DIFFERENCES

Efficiency and productivity in the

workplace are similar concepts. However,
in action, they are different.

Workplace productivity is the

efficiency with which you and your team
complete tasks.

For example, a team of two people who

can complete four tasks in one hour is
more productive than a team of three
who can complete the same tasks in two
hours.
 DIFFERENCES

Workplace efficiency is how well a

business uses its resources to complete
tasks.
For example, if three tasks are to be
completed and three employees are
allocated to the same task, this is not a
good use of the team’s resources.

However, if one employee is assigned to

each task, this is a better example of
workplace efficiency.
THE IMPORTANCE OF PRODUCTIVITY

• Much of the success of any

organization relies upon the
productivity of its employees hence
employee productivity is a significant
consideration for businesses.
• Productivity helps to improve
customer relationships. When
productivity is elevated, companies will
likely see their customers much
happier with the turnaround time and
overall efficiency.
• Customer satisfaction is a key
component in a successful
organization.
THE IMPORTANCE OF PRODUCTIVITY

• If employees are not productive,

they usually become unmotivated
and disconnected which will lead to a
negative impact on the culture of the
organization and staff.

• Improved engagement is one of the

most important aspects of productivity
in workplace.
THE IMPORTANCE OF PRODUCTIVITY

• Productivity also impacts business

costs. If employee’s complete tasks
timeously, they will have more time
to spend on other projects or tasks.

• This therefore increases productivity

and in turn saves money. Time is
money after all.
THE IMPORTANCE OF PRODUCTIVITY

• Productivity also impacts business

costs. If employee’s complete tasks
timeously, they will have more time
to spend on other projects or tasks.

• This therefore increases productivity

and in turn saves money. Time is
money after all.
THE IMPORTANCE OF PRODUCTIVITY

REDUCES STRESS

• Productivity helps reduce stress or pressure

at the workplace mainly because it helps
strike a balance between work and
professional life.

• Moreover, it helps manage your time and

energy more efficiently, increasing
confidence, high quality of work, and
completing tasks on deadline.

• Reduced stress may also help in increasing

overall health and wellness. Spending less
time on professional tasks or goals allows
you to focus on your physical health and
well-being.
THE IMPORTANCE OF PRODUCTIVITY

DEEPER ENGAGEMENT

• Increased productivity is equally

correlated to deeper engagement in the
workplace. In addition, high workplace
efficiency drives employee career growth
and a competitive edge for companies.

• Moreover, increased productivity also

helps in accomplishing long-term career
goals like securing your job position or the
highest pay package in the company.
THE IMPORTANCE OF PRODUCTIVITY

SUSTAINABILITY IN PERFORMANCE

• Being a consistent performer at the

workplace increases your chances of
becoming eligible for appraisal or
promotion.

• Higher productivity leads to consistency

and sustainability in performance.
Moreover, it helps you realize the tangible
difference in your routine.
THE IMPORTANCE OF PRODUCTIVITY

SUSTAINABILITY IN PERFORMANCE

✓ Optimal utilization of resources

✓ Dominance over competitors
✓ Innovation and creativity in
processes, products, and services
✓ Reduced cost of production
✓ Higher profit for the business
KEY TAKEAWAYS OF PRODUCTIVITY

A professional working in the current milieu

must have many unique character traits, and
efficiency and productivity in the workplace
are among them.

• It is the measurement of your

accomplishment in the workplace

• It is the measurement of the output per

unit of input

• It is the primary source of the company’s

growth and competitive edge

• It can be calculated from the number of

units produced or net sales of a company
CHALLENGES AND BARRIERS TO
WORKPLACE PRODUCTIVITY

It’s challenging to measure knowledge based

workers purely by the output of their
productivity.

Quality is often important, meaning that the

sheer amount of time spent on a project, or
the final work delivered may not be directly
related to the person’s productivity level.

In today’s workplace, if organizations focus

solely on measuring productivity as the
volume of output of people’s work, they are
likely to find themselves with a stressed
and disengaged workforce that feels
misunderstood.
EMPLOYEE DISENGAGEMENT

Disengaged employees are likely not the

most productive employees since they don’t
feel attached to the company.

A major part of engagement is successfully

creating a company culture in which people
develop a sense of belonging and feel
supported. For this to work, the company’s
values need to be clearly articulated and
trickle down to each team, so everyone
knows what they are working towards. A
greater sense of purpose will drive people’s
motivation on an individual level, within their
work and daily tasks.
INEFFECTIVE PERFORMANCE MANAGEMENT

A Gallup study found that half of workers

don’t know what’s expected of them at work.
That’ a huge problem.

When this happens it can lead to them

setting the wrong priorities, feeling
confused, and ultimately working on the
wrong things, which in turn decreases
productivity all around.

However if managers assist their reports in

setting goals for each work period, clear
expectations can lead to 5-10 percent gains
in productivity. This is probably one of the
productivity challenges people don’t think
about regularly.
TOOLS, TRAINING AND DEVELOPMENT

Even after setting clear expectations and

goals, people will still need continuous
guidance and coaching throughout the
quarter or sprint.

Not wanting to appear incompetent, some

people may try to struggle through their
difficulties on their own, either taking more
time or making mistakes along the way,
which could impact overall productivity.

Instead, it’s important to develop a culture

of continuous learning so people feel able to
ask questions and empowered to learn on
the job.
EXCESSIVE MEETINGS

Today’s workplace is full of distractions:

open office spaces and app notifications
create more distractions than ever. But an
often overlooked culprit is meetings!

There are times when your whole day is

back-to-back meetings, or worse, days when
you have short 30 minute periods in
between, which is not quite enough to get
back into work, but also enough to feel the
minutes of productivity slip away.

If your company culture is strong, ensure

that it trickles all the way down to things like
how you conduct meetings and the impact
this can have on people in the workplace. If
you represent a fun and dynamic culture,
help people find efficient ways to run
EXCESSIVE MEETINGS

If your company culture is strong, ensure

that it trickles all the way down to things like
how you conduct meetings and the impact
this can have on people in the workplace. If
you represent a fun and dynamic culture,
help people find efficient ways to run
meetings that don’t sap their productivity
and make the demoralized.
EXCESSIVE MEETINGS

If your company culture is strong, ensure

that it trickles all the way down to things like
how you conduct meetings and the impact
this can have on people in the workplace. If
you represent a fun and dynamic culture,
help people find efficient ways to run
meetings that don’t sap their productivity
and make the demoralized.
NON-WORK RELATED REASONS

One of the biggest productivity challenges

can be personal. But during those times,
pushing too hard to squeeze out work only
leads to high stress and burn-out. Thinking
back to your company culture and an
engaged workforce, it’s important to ensure
people fee supported during those times
rather than squeezed.
NON-WORK RELATED REASONS

Companies often forget that employees are

people too. Yet as mentioned in the
beginning, productivity isn’t a simple
equation of inputting money and getting out
work. Non-work related stress can have a
major impact on people’s ability to focus and
get things done. Rather than wasting
resources, give people the time and support
they need to recover and create dedicated
company ambassadors in return.
INEFFECTIVE COMMUNICATION

In order to meet their goals and complete

their assigned roles, employees need to be
able to communicate freely with their
colleagues. They rely on feedback and
direction from their managers to ensure
they’re performing their roles appropriately.
INEFFECTIVE COMMUNICATION

As a result, employees may struggle to

figure out which projects they need to work
on each day. Sometimes, communication
can get muddled when managers don’t
provide clear expectations on each
employee’s tasks and goals.
NOT ENOUGH RECOGNITION OR REWARDS

When employees don't receive regular

recognition or rewards for exceptional work,
they might feel as though their efforts aren't
appreciated. Employees might also perceive a
culture of favoritism, in which only higher-
level workers and executives earn kudos for
their accomplishments.
MULTI-TASKING

When you search for high-quality employees,

you look for people who are able to juggle
multiple responsibilities with ease. However,
too much multitasking can actually have a
negative effect on employees’ overall
productivity. Psychologists suggest that
multitasking increases the number of times
the brain must switch tasks, which causes the
brain to experience some lag time as the
person has to redirect their focus.
MULTI-TASKING

When employees feel compelled to address

everything that pops up in their inbox, they
can get distracted by less meaningful and
unimportant tasks and ultimately neglect the
more value-added and strategic aspects of
their roles.
NOT SOLICITING FEEDBACK FOR AREAS OF
IMPROVEMENT

When employees do not feel as if they have a

voice, they may struggle with problems on
their own in silence, which causes productivity
problems to spiral out of control.

Even when organizations do survey their

employees and solicit suggestions, they may
not always implement the feedback they
receive. That could also be a critical problem
that discourages employees from speaking up
in the future.
PRODUCTIVITY METRICS

Company productivity is a perennial business

topic because it’s the key to remaining
competitive. Productivity measures the output
an organization produces divided by the
inputs it uses, and it’s crucial that a company
not only tracks productivity, but does so in a
way that shows how it can be improved.
PRODUCTIVITY METRICS

That requires identifying the productivity

metrics that can make the biggest difference
for your company, and then closely measuring
the company’s performance against them.
PRODUCTIVITY METRICS

Productivity can be described as how

efficiently people, companies, industries or
whole economies convert inputs into outputs.
These four levels are intertwined. The
aggregate productivity of all individuals in a
company is an expression of the company’s
productivity. The aggregate productivity of all
companies in an industry then represents that
industry’s productivity. And the aggregate
productivity of all industries in an economy is
an expression of the economy’s productivity.
PRODUCTIVITY METRICS

A productivity metric is a measurement that

expresses part or all of the company’s output in
terms of an input. Some common metrics are
• revenue per employee, customer
satisfaction
• number of parts produced,
• Downtime
• employee turnover rate
• labor utilization rate, gross margin or
gross profit
• EBITDA (earnings before interest, taxes,
depreciation and amortization).
PRODUCTIVITY METRICS

You need to measure your company’s productivity

because it determines how well it competes in the
marketplace. Let’s assume your goods or services
are equal in quality to those of the competition.

• If you’re more productive, either by employing

fewer people, using fewer resources or
producing goods or services more quickly, you
can offer goods at a lower price, winning over
customers.

• Greater productivity can also lead to better

profit margins, a higher stock price and
increased shareholder value.
PRODUCTIVITY METRICS

How do you measure KPI?

Finding the right productivity metric depends on

what kind of productivity you are measuring.

The metrics and KPIs for a manufacturing

company are different than for a software
provider, and they often differ from one company
to another in the same industry, too.
PRODUCTIVITY METRICS

How do you measure KPI?

1. Choose productivity metrics. The metrics

companies measure can be either general —
numbers any company will typically track —
or specific — metrics relevant to your
industry and type of company.

2. Calculate your business’s productivity.

Productivity metrics are often intuitive, but
they do require some knowledge to calculate.
PRODUCTIVITY METRICS

Here are 9 metrics, most of which apply to

any company:

1. Projects completed
2. Sales close rate
3. Sales growth
4. Revenue per employee
5. Effectiveness ratio
6. Total cost of workforce
7. Overtime hours
8. Turnover rate
9. Recruiting conversion rate
1. PROJECTS COMPLETED

This is one of the basic definitions of productivity in

manufacturing businesses, where the same “job” is
performed over and over with relatively little
variation.

Calculating it is a simple counting exercise:

• How many jobs did the company complete in a
given period of time (measured as jobs completed
divided by time period)?
• Obviously, the target number will vary with the
complexity of the task and output.
2. SALES

Sales are the proceeds a company generates from

selling goods or services to its customers. They are one
of the most basic measures of any company’s health.
It’s important to distinguish sales from revenue
because companies have supplementary income
sources, such as interest, money from litigation,
royalties and other fees.

Sales = Price of each product or service x Number

of units / Services sold

• Net sales uses the same number but adjusts for

returns and discounts.
3. SALES GROWTH

Sales tells you how you are doing in absolute terms.

Sales growth, also a vital metric, illustrates you how
you are doing relative to past years.

The formula to calculate year-over-year growth is:

Sales growth = This year’s sales – Last year’s

sales / Last year’s sales x 100

or

Sales growth = (This year’s sales / Last year’s

sales) – 1 x 100)
4. REVENUE GROWTH

Another basic KPI that offers a broad indication of

how expensive a company is to run — or how
profitable it is, depending on how you look at it — is
revenue per employee.

This metric is often used to compare companies in

the same industry, as well as to compare the
profitability of different industries.

The formula to calculate revenue per employee is:

Revenue per employee = Total revenue for last

12 months (LTM) / Current number of full-time
employees
5. EFFECTIVENESS RATIO

There are three versions of the effectiveness ratio:

inventory, asset and receivables. The inventory
turnover ratio is used to determine whether sales are
enough to “turn” or use the inventory, and if so, how
many times.

The formula to calculate the inventory turnover ratio (or

rate) is:

Inventory turnover ratio = COGS / Average

inventory
5. EFFECTIVENESS RATIO

The asset turnover ratio is used to determine whether

the company uses its assets efficiently. The formula to
calculate asset turnover ratio is:

Asset turnover ratio = Revenue / Total assets

5. EFFECTIVENESS RATIO

The receivables turnover ratio measures a company's

efficiency in collecting debts and whether it extends an
appropriate amount of credit to the right customers.
The formula to calculate the receivables turnover ratio
is:

Receivables turnover ratio = Net credit sales /

Average accounts receivable
6. TOTAL COST OF WORKFORCE

TCOW is generally calculated as the sum of a company’s

personnel-related costs:

• all salaries paid to the company’s employees plus

benefits
• performance bonuses
• personnel-related taxes and insurance, events,
vacation pay, overtime, training, recruiting
• and any other cost you pay to, on behalf of or
directly because of your personnel.

The formula to calculate TCOW:

TCOW = TCOW / Total operating costs x 100

7. OVERTIME HOURS

All “non-exempt” employees (generally, those paid

hourly instead of by salary) must be paid overtime for
more than 40 hours worked in any week at a minimum
of 1.5 times their regular hourly rate.

Overtime is a key metric because labor productivity is

an important determinant of company profitability and
excessive overtime will drive down that profitability.

Tracking overtime allows you to keep those costs down.

It also helps you bill for projects more accurately.
7. OVERTIME HOURS

Many companies rely on employees to input their time,

often with inaccurate results. Today, however, software
is available that automatically tracks how much time
employees work and what they spent that time doing.
Tracking hours in real time and by project allows you to
balance employee workloads to minimize overtime
8. TURNOVER RATE

There is another turnover rate: the percentage of

employees who leave the company over a certain period
of time.

The formula to calculate employee turnover rate is:

Employee turnover rate = (Total number of

employee separations / Average number of
employees) x 100
8. TURNOVER RATE

The average number of employees is the number of

employees on the first day of a period plus the number
on the last day of a period divided by two. Include all
full-time, part-time and temporary employees, but not
independent contractors scheduled to leave at the end
of their contract or employees on temporary leave
(parental, medical or otherwise).
8. TURNOVER RATE

One thing to note: A low turnover rate compared to

your industry average is usually good, but not if a lot of
the employees leaving are your best ones. Quality
matters as well as quantity. This isn’t hard to track —
small companies know who their top performers are,
and large companies usually identify high performers in
human resources (HR) systems.
9. RECRUITING CONVERSION RATE

This metric tracks your company’s job offer

acceptance rate.

If you are having trouble filling positions

compared with other companies in your
industry, it’s an indication that something isn’t
right.

For instance, your salaries and benefits may

not be competitive with the market.

Recruiting conversion rate = (Number of

job offers accepted / Number of job offers
extended) x 100
PRODUCTIVITY METRICS

In a competitive economy, companies need to

improve continuously, year after year. There’s
only so much management can focus on at any
one time, however. So it is crucial to choose
the right metrics to measure and manage your
company’s productivity from among the dozens
available.