For many businesses, having the ability to maximize output without compromising quality gives them a major edge over their competitors. That’s why many businesses are turning to workplace productivity statistics to make decisions on workforce management technology, hybrid work, artificial intelligence, and more. 

Understanding what drives productivity in the modern workplace is no simple feat. Technology is pivotal, providing tools that enhance efficiency and minimize lost productivity. Meanwhile, the work environment itself can either promote creativity and collaboration or stifle it.

Equally important is employee engagement. When you have engaged employees, their output tends to increase. In fact, companies with the highest employee engagement rates are 21% more profitable and 17% more productive. Conversely, disengaged employees can drag down overall performance — and that’s on a global scale. Disengaged employees cost the U.S. economy $450-550 billion annually. 

If you’re already enjoying those statistics, there’s plenty more where that came from. This article explores engagement, technology, and work environments, backed by statistics highlighting their impact.

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Statistics provide a clear picture of where businesses stand and what factors are influencing their performance. They also help companies better understand employee behavior and overall efficiency.

Labor productivity

Bureau of Labor Statistics (BLS) data on labor productivity growth

The Bureau of Labor Statistics (BLS) offers insights into employee productivity statistics across various sectors. By examining this data, businesses can better understand the factors influencing productivity. Here are some key statistics from the BLS:

  • Labor productivity in the nonfarm business sector rose by 0.3% in Q1 2024.
  • Hourly compensation increased by 5% in the same period.
  • Unit labor costs climbed by 4.7%.
  • Real value-added output saw a 1.3% increase.
  • Hours worked went up by 1%.

These statistics show a modest rise in productivity, even as labor costs increase. The rise in hourly compensation indicates a competitive labor market where businesses strive to attract and retain productive employees. This trend also suggests that companies are willing to pay the average employee higher compensation to enhance engagement and efficiency.

OECD Compendium of Productivity Indicators analysis

The OECD Compendium of Productivity Indicators 2024 provides a comprehensive overview of recent and long-term productivity trends across OECD and selected G20 countries. Here are some key statistics from the OECD:

  • Average labor productivity growth across OECD countries was 1.4% in 2023.
  • The United States saw a significant rebound in productivity growth from -1.6% in 2022 to 1.5% in 2023.
  • Europe experienced a productivity growth of 1.5% on average in the same period.

This data helps businesses understand various factors contributing to productivity changes and economic growth.

The Conference Board Productivity Brief insights

The Conference Board’s Global Productivity Brief 2023 provides a comprehensive analysis of global labor productivity trends, which helps in understanding the current economic landscape. Key statistics include:

  • Global labor productivity growth is forecasted at 2.3% for 2023, down from an average of 3.2% between 2011 and 2019.
  • In 2023, the United States experienced a 1.4% growth in total hours worked but only a 0.7% increase in GDP per hour worked.
  • Europe saw a stagnation in productivity, with a 0% change in GDP per hour worked.

These statistics indicate that while productivity growth has slowed in mature economies, technological investments continue to play a vital role in improving productivity.

Proper tools let employees spend their time more efficiently and with higher engagement, improving productivity.

Industry and sector productivity

OECD sector-specific productivity analysis

The OECD database provides detailed data on several countries’ labor productivity and unit labor costs. This information is necessary for understanding the dynamics of productivity across various sectors. Here are some statistics for the U.S.:

  • The non-agriculture business sector’s gross value added per person employed increased by 3.7% in 2021, excluding real estate (construction, manufacturing, mining, and utilities).
  • For the business sector services (information and communication, financial, scientific, and technical), the increase was 4.6% in the same year.

Office workers in the business sector services have contributed to this growth, reflecting higher engagement and efficiency. As productive workers become more efficient, their job satisfaction tends to increase. This creates a positive cycle of productivity and engagement.

McKinsey: Rekindling U.S. productivity for a new era report

The McKinsey report explores the importance of productivity to various U.S. sectors in driving economic growth. Key strategies include leveraging technology, reskilling the workforce, and enhancing labor mobility. Achieving these goals could add $10 trillion to the GDP by 2030, significantly benefiting households.

Focusing on long-term productivity growth could add $10 trillion in output, as shown by some states, cities, and sectors maintaining growth near 2.2 percent.

(Source: McKinsey)

  • The information sector enjoyed the highest U.S. labor productivity growth by sector from 2005 to 2019, with a productivity CAGR of 5.5%.
  • The real estate, rental, and leasing sector is stagnating at 1%.
  • Growing sectors include arts and entertainment, retail trade, and administrative and waste management services at 1.8%, 1.8%, and 2.2%, respectively.

Productivity gains remain uneven across sectors and states, with technology and finance leading while services lag behind. Workforce shortages, debt, and inflation are critical challenges to address.

Creating an environment conducive to technology adoption and employee efficiency is essential. This will ensure sustainable productivity growth and broader economic benefits.

Drivers of workplace productivity

Understanding the factors that drive workplace productivity is like piecing together a complex puzzle. From the tools employees use to the environments they work in, every element plays a role in the bigger picture.

Technology and innovation

Let’s be honest: no business today can stand on its legs without technology. Advanced tools and software streamline workflows, automate repetitive tasks, and enable seamless communication across teams.

By leveraging these innovations, companies can significantly improve productivity, reduce errors, and free up employees to focus on more strategic, value-adding activities.

A 2014 study on Allied Bank Ltd. in Pakistan highlights the significant impact of technology on employee performance. The research found that the adoption of new technologies led to increased efficiency, allowing employees to complete tasks in fewer hours a day.

This not only improved productivity but also enhanced employee satisfaction and engagement by creating a more streamlined work experience — and technology has advanced even further today, in 2024.

Workplace culture and employee engagement

A positive company culture is essential for building a productive workforce. When employees feel valued and supported, they are more likely to be motivated and committed to their work. This not only increases productivity but also reduces workplace stress. In fact, teams that feel trusted and valued at work are 74% less productive

A culture that prioritizes employee engagement directly impacts productivity. According to Gallup research, highly engaged teams are 14% more productive than disengaged teams.

Strong company culture also plays a significant role in employee retention. Employees who feel a sense of belonging and alignment with the company’s values are less likely to leave, saving costs employers would otherwise incur from high turnover rates.

Organizational structure and management practices

Employees prefer clear hierarchies and well-defined roles, as these elements provide a sense of direction and purpose.

For many employees, supportive management practices like open communication and flexibility play a key role in their decision to stay with a company or seek a new job. Practices like these help organizations create an environment where employees are more likely to thrive, leading to increased productivity.

Additionally, regularly assessing and adapting these practices based on feedback helps ensure that they meet the evolving needs of the workforce. In doing so, companies can cultivate a productive and satisfied team that drives organizational success.

How to boost workplace productivity

Boosting workplace productivity isn’t about working harder — it’s about working smarter. Strategic changes and a supportive environment help companies unlock their employees’ full potential.

Leverage productivity tools

Software tools can streamline workflows, improve communication, and help employees manage their time more effectively. By equipping your team with the best tools available, you can create an environment where employees thrive.

Hubstaff Dashboard
  • Hubstaff. Hubstaff is a workforce analytics software that helps teams monitor work hours and measure productivity. It offers features like time tracking, activity levels, detailed reports, and automated timesheets, helping managers understand team strengths and workflow weaknesses. With advanced insights and integrations with other productivity tools, Hubstaff helps teams stay on track and meet their deadlines efficiently.
  • Slack. Slack is a powerful communication platform where you can create channels for different teams and projects, send direct messages, host video calls, and share files all in one place. By centralizing communication, Slack reduces the time spent on emails and meetings, allowing teams to focus more on their work.
  • Loom. Loom is a video messaging tool that allows users to record and share quick video messages. It’s great for providing feedback, giving instructions, or sharing updates without a live meeting.
  • Asana. Asana is a project management tool that helps teams plan, track, and manage their tasks.
    With features like task assignments, due dates, and progress tracking, Asana ensures everyone knows what needs to be done and by when.

Incorporating tools like these into your workflow helps create a more collaborative work environment, allowing for increased workplace productivity.

Establish clear goals

The average worker thrives in an environment where goals are specific, measurable, and achievable. Clear goals eliminate ambiguity and reduce the chances of poor communication, which can derail projects and lower productivity.

For instance, for remote workers, the mere thought of physical separation may conjure fear of future misunderstandings and misaligned efforts — but not if goals are defined from the beginning. 

Remote work gets a bad rap, but if goals aren’t clear, it won’t matter if you’re working in the office or remotely — delays will happen.

To enhance productivity, managers should define goals with no room for vagueness. This ensures that all team members are on the same page and can adjust their efforts as needed.

Practice effective communication

Effective communication is the cornerstone of a high-performing workplace.

Clear and open communication leads to higher employee engagement and a more positive work environment. In the era of remote work, maintaining effective communication is even more critical, as it helps keep everyone aligned with company goals.

Good communication practices also contribute significantly to employee health and well-being. When employees are well-informed, and their concerns are heard, it reduces stress and builds a sense of belonging. Healthy employees are also more likely to be engaged and productive, positively impacting the overall employee experience.

To practice effective communication, use various channels and tools to keep everyone in the loop. Regular check-ins and feedback sessions can help maintain transparency and trust with remote employees and the team as a whole.


Understanding the numbers behind productivity allows companies to implement targeted strategies that enhance employee engagement, work-life balance, and overall performance. With the increasing prevalence of remote work, tools that streamline workflows and promote better communication are more important than ever.

Use productivity data to inform your decisions and continually improve your workforce efficiency. When used right, productivity data can help you trigger immediate jumps in productivity and achieve sustained long-term success.

Category: Employee Productivity