Employee productivity improvement is a critical challenge for CEOs aiming to enhance business performance.

This article outlines actionable steps to address productivity barriers systematically. It is to be read in continuation with the previous article on ‘Organizational Climate: Managing Business Performance’. By leveraging employee feedback and HR productivity tools, organizations can implement strategies to improve employee performance and achieve sustainable growth.

The approach below is based on experience and suggests launching corporate initiatives based on employee feedback. It also proposes continuation of this exercise for 3 – 4 years, since all the factors responsible for low employee productivity may be difficult to address in one go. We shall look at this problem in 5 phases for ease of implementation.

Phase 1: Problem Diagnostics through employee participation

Methodology

To kick-start the employee productivity improvement journey, gather insights directly from employees using a strategic feedback form during the Performance Appraisal Process. 

1. Clarify Anonymity: Inform the employee that their responses shall not be routed through the manager. 

2. Analyze Data: Collate and analyze feedback to uncover key trends. 

3. Share Insights: Share the findings directly directly with the management to design actionable strategies. 

This process not only engages employees but also equips leaders with the insights needed to address barriers to productivity. Moreover, to ensure full participation, every employee must sign off on the form before initiating the appraisal process. Consequently, this step guarantees 100% employee participation in this strategic survey, creating a foundation for future HR strategies and effective performance tracking.

Key Questions

Which 3 factors impact your productivity the most?

In the column RANK, enter 1 for a FACTOR which is 50% or more responsible; 2 for the factor which is 30 to 50% responsible and 3 for the factor which is less than 30% responsible for your low productivity.

Note: RANK column is to be left blank for the remaining four factors not applicable to you.

What actions can management take to support you? 

Provide three actionable suggestions for each ranked factor. For the factors ranked 1, 2 & 3 above, suggest three specific actions the management may take to help in enhancing your productivity.

What should be the corporate planning focus during the next two years?

Rank activities such as skill reviews, goal setting, or performance-linked incentives by priority. as 1 to 6. Rank 1 means ‘highest priority’ and Rank 6 means ‘lowest priority’.

Note: No two activities can have the same rank.

Phase 2: Set and Track Goals Using Software Tools

A crucial aspect of productivity enhancement is goal accountability. Hence, implement goal-setting software that enables managers and employees to define, track, and evaluate SMART goals.

Features of the Software

1. Software should enable recording of:
   
   (i) Goal statement
   (ii) Current status of goal in terms of targets previously achieved
   (iii) Expected targets to be achieved in a specific time frame
   (iv) Tracking achievement at 3 to 4 intermediate points
   (v) Record mentoring notes of the manager at each point (maybe as a video/ audio clip) and
   (vi) Final achievement
   
   
2. The manager should be able to send an email at any time, requesting the employee to update the current status of any goal. Additionally, this acts as a special feature of ‘tracking.’

3. The software should be able to provide the management:
   (i) Information about the number of employee-manager interactions in each quarter
   (ii) Goals for which the progress is slow
   (iii) Goals that have been over-achieved etc. This would thus enable each functional/ department head to know the real story & intervene before it is too late.

This transparency therefore enhances workplace productivity by fostering accountability and enabling department heads to intervene promptly when progress stalls.

Phase 3: Use 360-degree feedback for leadership evaluation

Employee feedback often highlights managerial inefficiencies as a major obstacle to productivity improvement. Hence, if “incompetent management” ranks among the top three barriers in Phase 1 feedback, initiate 360-degree reviews in the next appraisal cycle.

Objectives

1. Identify Gaps: Pinpoint ineffective managers & decide on their training, transfer, development or separation from the company.
2. Develop Leadership: Collect development needs for each manager & plan training for those skills/ competencies that are deficient in most of the cases.
3. Track Progress:  HR productivity tools to monitor participation in self-development programs and organized training sessions. (Check if Q 3 of Phase 1 supports this activity)

A Training Management Tool should enable tracking of employee participation in the ‘self-development programs’. Furthermore, by prioritizing leadership development, organizations can enhance employee performance and foster a positive organizational climate.

Phase 4: Recognize High Performers and Address Non-Performance

With long-term performance data available, management can identify non-performers. They can moreover explore exit strategies while implementing incentives to retain high-performing employees.

Actionable Steps

• Design performance-linked incentives to motivate and reward top contributors.
• Use data analytics to identify patterns of underperformance and plan interventions.

These initiatives align with broader productivity improvement goals and thereby ensure resource optimization across the organization.

Phase 5: Continuously Refine the Process for Employee Productivity Improvement

Improving employee productivity is an ongoing effort that demands a systematic and participative approach. Repeating Phase 1, by introducing a new Questionnaire every year, provides the management with a tool to decide on new initiatives in consultation with employees. This in turn keeps the focus on employee productivity improvement.

Conclusion

Organizations can tackle workplace challenges and enhance business performance by focusing on employee productivity improvement. Moreover, in the next article in this ‘Managing Business Performance’ series, our focus will be on Leadership Development and it’s role on improving the organizational climate.

Stay tuned for more actionable insights to drive productivity enhancement and business growth!

Frequently Asked Questions