Why is productivity important in the workplace?

Danish Wadhwa

Why is productivity important in the workplace? This is a question which surely comes in your mind if you are a working professional.

Productivity helps you grow faster in the economy and face the cut throat competition without worrying about failure. Productivity can build a company or lead to downfall. Having manpower who are even more resourceful than the machines can increase productivity to great extent.

Productivity at workplace will help the company test and analyse their performance preparing for future endeavors. There are many advantages of productivity at the workplace and serves both ways i.e. in the development of the business as well the employees.

The most productive business will have nil effect of adverse market conditions because they are proactive. More productive they are less stressful and burdensome environment will be there in the workplace which will lead to a happy, healthy and a positive workplace to work with.

Greater productivity gives ample time to focus on those parts of businesses which needs to be enhanced or changed. It allows planning and coordination with effective usage of resources by its manpower.

The question is why we need productivity at workplace apart from these reasons. And the answer to this are

1. Greater Demand

To meet the demands of the customers and fulfilling their expectations and giving tough competition to the other competitors dealing with the same line of products. A business has to stay at par with customers needs and market demands. In order to give A+ output, productivity is important.

Productivity involves timeliness, discipline, coordination, analysis and highly skilled manpower. Greater demand will contribute towards developing a goodwill in the market. There are many such companies which have established themselves over the years.

2. Increased Profit

The more you produce, the more will be the sale output of the business. Greater profits and economic growth of the firm. Profit is related to production. What makes a product acceptable than the other is its quality, pricing and parameters of customers needs met by the production team and designing team.

Now, if productivity is not there the graph will have variations of increased or decreased profit. A successful business is one whose graph would increase consistently for that productivity at the workplace is of utmost importance. Increased profit can  utilize towards adding further capital or investing to maximize its returns in future. Infrastructure development.

3. Saves Time

When you finish work effectively on time, you get time for yourself or doing other important things in life or focusing on other productivity methodologies to boost business growth. It is tough to meet last minute demands and work continuously for 12 to 14 hours which adds a lot of stress and degradation in employees health.

These days, technology has reduced the work by half and allows us to multiply or work in a very less time. The business can also channel the manpower towards other developmental activities ancillary to growth and productivity.

4. Boosts employee Morale

Increased profits mean better perks, bonuses and emoluments for the workers at the workplace. The better they do, better their salaries and wages, allowances and other added benefits this will, however, motivate employees to perform even better with great enthusiasm. Employees welfare will directly motivate them to perform even better and strive towards better productivity. An employee with high morale will work devotedly and tirelessly for the organisation.

5. Economic Growth

The increase in productivity facilitates the businesses to give considerably increased outputs and allows an increase in Gross Domestic Product. Promoting export and improved trade relations with other countries. Taxes imposed on businesses like excise, custom, service tax and vat are collected by the government to utilise the finances towards the development of the nation.

6. Cost Saving

Higher productivity will allow cost saving and provide better pricing mechanism to offer to consumers. The better the cost, greater will be its demand leading to greater demand and increased need for manpower and more job availability. Cost saving would let the businesses save cost, make profits and do social good by devising appropriate cost for all range of customers and clients.

7. Your Mood and behaviour

Work pressure creates a stressful and a negative environment around, where excuses will be more and blame game would be in practice. In a highly productive business each individual is willing to help and support the other colleague.

Sometimes an individual may someones else's mood because they are disgruntled or are dissatisfied due to some reason. A strike by the unions shut down by workers are results of low productivity and an unfavorable work environment for employees.


The structure of the workplace defines how good or bad the organisation will perform. How long will the business survive in the market depends highly on its productivity because it is like “Survival of the fittest” and one who lacks loses? It takes years to build a reputation and a few bad decisions or drawbacks to break it. Productivity is important not only for a business to grow or earn profits but manifold purposes discussed today.

Danish WadhwaAuthor

Danish Wadhwa is a strategic thinker and an IT Pro, with more than 6 years of expertise in the digital marketing industry. He is more than a results-driven individual, who is well-versed in providing high-end technical support, optimizing sales and automating tools to stimulate productivity for businesses.

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