How to Improve Employee Productivity: 7 Strategies

Mar 27, 2025
9 min read
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The consequences of low productivity aren't cheap. Between 2005 and 2021, below-average growth in labor productivity led to a loss in output of $10.9 trillion. This represents missed opportunities for business growth and innovation.
Building a productive workforce doesn't happen by chance. It’s the result of strategic initiatives and prioritizing employee well-being.
While many businesses chase quick fixes, building sustainable productivity requires an environment where employees have the tools, support, and motivation to do their best work. A structured approach creates a less stressful work environment that enhances efficiency and quality of work across organizations.
Discover how to improve employee productivity and build a foundation for lasting success.

What is employee productivity?

Employee productivity measures how well employees do meaningful work that moves the business forward. Many employers gauge productivity by calculating total output over total input, which indicates efficiency.
Productivity isn't just about completing tasks. It's about focusing on what matters most while avoiding the distractions that affect efficiency. When employees have the motivation and tools to work efficiently, they can achieve the goals they set faster. This leads to better workplace morale and stronger results across the company.

Importance of employee productivity

Productive employees produce high-quality outputs, which improves profitability and helps businesses meet their goals. When workplace productivity declines, it sets off a domino effect throughout an organization. Missed deadlines and mounting distractions create stress for team members, which further reduces productivity. This cycle hinders profitability, slows growth, and impacts overall business performance. 
On the other hand, increasing productivity creates a positive ripple effect. Motivated employees take on new challenges with confidence. This spreads through teams, improving both employee engagement and job satisfaction. When employees have the tools and support to stay focused and productive, they feel empowered and more satisfied with their work — which then shows in business results.

Factors that impact employee productivity

Before creating a plan to increase productivity in the workplace, employers need to understand the main factors that affect employees' abilities to do their best work:

Workload

Too much work leads to burnout and too little results in boredom — and neither drives productivity. The key is finding a balance that engages employees without overwhelming them. When workloads are imbalanced, team members make mistakes and lose motivation.

Tools and workspace

Outdated technology, inefficient processes, and a cluttered workspace can create distractions and slow employees down. However, when employees have the right tools and an organized workspace, they focus on their jobs and work more efficiently.

Stress

Employees’s stress levels affect outputs and workplace dynamics. About 40% of turnover happens due to stress. Factors affecting stress include high workloads, long hours, and difficult projects — but financial stress plays more of a role than many people expect.
With three out of four Americans living paycheck to paycheck, money worries are likely to be problematic for most of the workforce. The burden of worrying about paying rent or bills makes it difficult to stay focused at work. In fact, one in three full-time employees have said that money worries impact their productivity.

Team dynamics

Poor communication, workplace conflicts, and unclear expectations can all stand in the way of getting things done. When teams communicate well and support each other instead, efficiency and performance improve, feeding productivity and producing better outcomes. 

7 strategies to improve employee productivity

According to a McKinsey survey, 50% of employees are unproductive at work. That's why it's so important to create an engaging and motivating work environment.
Try these seven strategies to improve productivity:

1. Promote work-life balance

Productive employees need a balance of structure and freedom. Where possible, let people choose when and where they work, focusing on results and clear deadlines rather than rigid schedules or quotas. Autonomy motivates employees by establishing a culture of trust and empowering employees to maximize their peak focus times, whenever those might be.

2. Recognize and reward good work

Create regular opportunities to celebrate wins, both big and small. This lifts team morale and shows employees people appreciate their hard work. Plus, when people see their coworkers getting recognized, it motivates the whole workplace.

3. Build financial wellness programs

Providing a financial wellness benefit like EarnIn can help ease financial stress and give employees greater control over their money. With on-demand pay, employees can access their earnings when they need them—up to $150 per day, with a max of $750 per pay period1—and receive their money in minutes, starting at just $2.99 per transfer.
Beyond Earned Wage Access, EarnIn’s full suite of financial tools helps employees avoid overdrafts, save for the future, track their credit scores, and more. By reducing financial stress and empowering employees with financial flexibility, EarnIn helps create a more focused, engaged, and productive workforce.

4. Create career development opportunities 

Upward mobility motivates employees to do better work and show leaders what they’re capable of. Offer opportunities for employees to learn and grow, like skill-building sessions, and make sure people know what promotions are available to them.

5. Set clear goals and expectations

Productive employees know exactly what success looks like. Set clear, achievable goals and check in regularly to gauge their progress and offer support. This focuses and motivates team members while making it easier for them to prioritize effectively.

6. Invest in the right tools and technology

Equip the workforce with the technology, tools, and training they need to work efficiently. When employees must take the time to find information or learn a skill on their own, productivity suffers.

7. Foster strong communication and collaboration

Create opportunities for collaboration, encourage open communication, and build trust between team members. According to Gallup, engaged workplaces experience 78% less absenteeism and 23% more profitability.

4 tips for successfully improving employee productivity

Strategies are only effective if employers know how to put them into action. Here are a few productivity tips to create lasting changes in the workplace:
  1. Start with employee feedback. Ask employees what roadblocks they face. They know which distractions and obstacles slow them down. Use quick surveys or casual chats to gather honest input.
  2. Give managers support. Managers play a large role in their teams’ productivity levels. They should understand the impacts of efficient work and how to give teams what they need to succeed.
  3. Track what matters. Measure productivity by monitoring the right performance indicators, like project completion rates, revenue per employee, and employee morale. At the same time, remember that numbers aren't everything. Check in with employees regularly to assess how changes are working and whether further adjustments are needed.
  4. Keep the communication flowing. Make sure everyone knows how to share concerns or ask for help when they need it. This keeps small issues from becoming big problems.

Improve employee productivity with EarnIn

Supporting employee productivity starts with eliminating stressors that impact focus and engagement. Financial stress is one of the biggest workplace distractions, and when employees are worried about making ends meet, their ability to stay productive suffers. 
With EarnIn, employees can access on-demand pay, giving them the flexibility to withdraw up to $150 per day, with a max of $750 per pay period1 — and receive their money in minutes, starting at just $2.99 per transfer.2 Beyond Earned Wage Access, EarnIn provides a suite of financial wellness tools to support employees on their financial journey. Credit Monitoring3 helps them stay informed about their credit health, Balance Shield4 offers protection against overdrafts and fees, and Tip Yourself5 makes saving effortless with every paycheck. Together, these tools help employees reduce financial stress and empower them to build confidence. 
EarnIn requires no integration with payroll, time and attendance, or HRIS systems, and comes at no cost to employers, making it a simple yet impactful way to enhance employee well-being.
Discover how EarnIn can give employees greater financial flexibility and help build a more productive workforce. 
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services
EarnIn is a financial technology company not a bank. Banking Services are provided by Evolve Bank & Trust, Member FDIC. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance here.
1
A pay period is the time between your paychecks, such as weekly, biweekly, or monthly. EarnIn determines your daily and pay period limits (“Daily Max” and “Pay Period Max”) based on your income and financial risk factors as outlined in the Cash Out Maxes section of our Cash Out User Agreement. EarnIn reserves the right to adjust the Daily Max and Pay Period Max at its discretion. Your actual Daily Max will be displayed in your EarnIn account before each Cash Out.
EarnIn does not charge interest on Cash Outs or mandatory fees for standard transfers, which usually take 1–2 business days. For faster transfers, you can choose the Lightning Speed option and pay a fee to receive funds within 30 minutes. Lightning Speed is not available in all states. Restrictions and terms apply; see the Lightning Speed Fee Table and Cash Out User Agreement for details and eligibility requirements. Tips are optional and do not affect the quality or availability of services.
2
Lightning Speed is an optional service that allows you to expedite the transfer of funds for a fee. Depending on the product, the fee may be charged by EarnIn or its banking partner. Lightning Speed is not available in all states. Restrictions and terms apply. See the Lightning Speed Fee Table for details.
3
Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don't be surprised if your lender uses a score that's different from your VantageScore 3.0. Learn more.
4
Balance Shield provides free alerts when your bank account balance drops below the threshold you set in your EarnIn account. You can also enable automatic transfers ($100/day -subject to your available earnings- with a limit of $750/pay period), if your bank account balance falls below your set  threshold. If your available earnings are insufficient to transfer the $100, the transfer will not be completed.You choose the speed of these automatic transfers. Standard speed is available at no cost and the transfer typically takes 1-2 business days. Lightning Speed is available for a fee [see Lightning Speed Fee Table] and the transfer typically takes less than 30 minutes. You will also have the option to set a tip for automatic transfers. Tips are optional and can be $0; however, if you choose to set a tip, it will be applied to each automatic transfer. Whether you tip, how much, and how often you tip does not impact the quality and availability of services. You can cancel the alerts and/or transfers at any time in your EarnIn account settings. See the Cash Out User Agreement  for more details. While Balance Shield can help you avoid overdrafts, it does not guarantee protection from third-party fees, and its effectiveness depends on your usage and bank activity.
5
Tip Yourself Account funds and Tip Jars are held with Evolve Bank & Trust, member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service deposit account. For more information/details visit Evolve Bank & Trust Customer Account Terms. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance here.