Workplace Productivity Statistics for 2025

What is a good productivity percentage?

Both employee productivity and efficiency play a crucial role in a company’s success.

But aren’t productivity and efficiency the same thing? While they’re often used interchangeably — there’s a difference.

Productivity reflects the quantity of work produced/completed, while efficiency refers to the quality of that work.

For example, a content writer completes research and writes 1,000 words in 8 hours — this is how productive that content writer is.

On the other hand, efficiency means completing the same task with fewer resources. In this case, that would be a content writer completing 1,000 words in less time — let’s say, in 5 hours.

The writer would need to use fewer resources to complete the task. For example, they reduce the time spent on research by using filters in their web searches. This enables them to find relevant information more quickly and thus be more efficient.

🎓 Productivity vs Efficiency: Maximizing Performance and Output

Now, if you’re wondering what a good productivity percentage is, some resources claim it’s between 70% and 75%.

In other words, a good productivity percentage means that workers spend:

• 70–75% of their working hours on actual work, and
• 25–30% of their working hours on breaks.

It’s only natural that people can’t be at their most productive levels at all times. Such behavior can be a straight path to burnout. In fact, studies have shown that 34% of small business owners experience burnout caused by overworking.

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The 70 percent productivity rule

Typically, employees aren’t fully productive during the entire 8-hour shift.

So, in the business context, the 70% rule applies, suggesting that’s the optimal productivity rate for employees. This number implies that the best practice is for employees to work at a less intense pace most of the time, with no pressure and constant stress over deadlines.

Such employees will have the best response when their workload demands are temporarily increased, knowing that they’ll soon ease back into the routine.

Results from an Inc. report show that even employees who are actively working on tasks spend only 53.3% of their time being productive.

So, objectively, in comparison to the average rate, the 70% rule is certainly a productivity upgrade and a great way to achieve a work-life balance.

What are productivity metrics?

The Bureau of Labor Statistics distinguished between 2 main categories for measuring productivity:

• Labor productivity — measured as growth in hours worked vs. growth in output, and
• Total factor productivity — measured as growth in labor + capital + energy + materials + services vs. growth in output.

Relying on data provided by the International Labour Organization (ILO) for 2025, we can calculate productivity like this:

Labor productivity refers to efficiency:
Labor hours per week (40 hours of content writing) / units produced per week (5 blog posts) = 8 hours per blog post

Total factor productivity refers to dollars (or other units) generated per unit of labor (e.g., economic growth of a country, Growth Per Capita):
1 hour of 1 worker in Luxembourg contributes $166.1 to the country’s economic growth 

Now, let’s see how exactly you can stay productive and what key factors increase productivity.

Employee productivity statistics (+ productivity tips)

After learning about the optimal productivity percentage and productivity metrics, it’s time for some concrete employee productivity statistics.

What increases productivity?

Luckily, many factors related to productivity are within our control.

A great start to increase your productivity levels includes the following:

• Having a good night’s sleep,
• Staying hydrated,
• Exercising, 
• Eating healthy, etc.

Another equally relevant category refers to the objective conditions in our surroundings, and making those conditions optimal for productivity.

We’re referring here to objective conditions such as:

• Room temperature,
• Noise levels,
• Whether the chair we are sitting in is comfortable, and
• Similar aspects of our immediate environment.

Some other secrets to increasing productivity include eliminating distractions and improving time management. These strategies are crucial for increasing productivity at work and achieving better results.

79% of employees don’t feel engaged at work

As per the State of the Global Workplace study by Gallup, in 2024, only 21% of employees reported being engaged at work. 

According to another Gallup report, employee engagement can increase productivity and also contributes to:

• 49% higher retention rates, and
• 23% higher profitability.

But what does being “engaged at work” even mean?

Simply put, it means being enthusiastic and passionate about your job and being psychologically attached to the company.

When a person is actively engaged, their focus is much better, and there’s less room for distractions.

🎓 Improve Employee Morale With These 4 Tips

Productivity booster #1: Healthy lifestyle

Maintaining a healthy lifestyle positively impacts every aspect of our lives — especially our cognitive abilities.

Additional benefits of striving to be fit and healthy include:

• More energy,
• Better self-esteem, and
• Less risk of developing serious health problems.

Let's see how all that affects our productivity levels.

Adequate nutrition boosts productivity levels by 34%

Proper intake of vitamins and minerals is essential for maintaining our energy levels. So, if you want to achieve maximum-quality performance, you should consume nutritious foods.

A 2025 study by Mahendika et al. investigated the correlation between a healthy diet and the productivity of office workers. The data was gathered by surveying 210 office workers. According to the results, workers who eat healthy are more productive by at least 34%. 

Creating a healthy diet plan is vital to our energy levels. So, there’s a direct correlation between what we eat and how we perform at work. That’s why you should always plan and schedule your meals, even snacks.

We’ve all seen a variety of popular commercials for Snickers candy bars, featuring a campaign based on the saying, “You're not you when you're hungry.”

That’s exactly what happens when we’re hungry — because our body needs different kinds of nutrients to properly function.

Now, while candy bars aren’t a perfect example of adequate nutrition, the slogan is surely on point.

And, of course, adequate water intake is equally important. According to the United States Environmental Protection Agency (EPA), the average American drinks approximately 1 to 2 liters of water per day.

That’s about half a liter less than the recommended daily water intake of 2.7 liters of water for women and 3.7 liters for men.

As little as 20 minutes of brisk walking a day improves one’s focus

Another health-related factor that significantly impacts our productivity rates is our physical well-being.

When we’re uncomfortable in any way — like when our back hurts — it’s much harder to concentrate, and productivity levels drop.

The global recommendations are to include a minimum of 150 minutes of moderate-intensity physical activity per week. According to the World Health Organization (WHO), 31% of adults worldwide don’t meet these recommendations.

Apart from keeping us fit, research indicates that exercise enhances memory and cognitive function. It also reduces stress and anxiety, and improves sleep — which indirectly leads to improved productivity.

The 150 minutes of activity a week recommendation may sound taxing, but this means that only 20 minutes of brisk walking a day is enough to notice the benefits.

🎓 10 Productivity Exercises for Body and Mind

Productivity booster #2: Creativity

It’s exactly like one of the greatest minds of all time, Albert Einstein, once said — “Creativity is intelligence having fun.”

Creative people are better problem solvers, as they think out of the box. They’re also more easily motivated since a creative approach to any problem or task makes it infinitely more interesting.

Furthermore, creative thinking makes us more mentally active, often in a non-typical way.

Below are several creative solutions that help people boost their productivity levels.

86% of people are more focused and engaged when they listen to music

We’re not talking about the commonly mentioned theory of the Mozart effect, originally published in 1993.

To explain, the authors of that paper argue that a specific type of IQ — spatial-temporal — increases after listening to Mozart’s sonata for two pianos (K448) for 10 minutes.

However, the role of music may also be about increasing our energy levels and decreasing environmental noise. Most of the time, people will be more productive if they tune out the surrounding noise with the help of their favorite playlist.

A UK study by PPL PRS revealed that as many as 86% of respondents feel that background music makes them more focused and engaged at work.

Other benefits of playing music at work that the majority of respondents agree with include:

• Playing music at work reduces anxiety (93% of respondents agree),
• Music in the workplace lifts the atmosphere (89% of respondents agree), and
• Music in the workplace is motivating (79% of respondents agree).

So, employees like to play music while working because it motivates them and alleviates anxiety — resulting in more productive work sessions.

90% of workers feel more productive when work tasks are gamified

Most people strive to make their work interesting and enjoyable, especially when faced with long or repetitive tasks.

This is only natural, as our attention span shortens and our ability to focus lowers when we consider a task boring.

That’s why businesses have started introducing gamification in the workplace. The concept refers to the application of game-like rules and elements to non-game tasks. This usually involves:

• Goals — to determine specific tasks and deadlines,
• Points — to track progress, and
• Badges — to celebrate success.

The goal is to make work-related tasks more enjoyable, effectively boosting employee engagement.

According to research, 90% of the respondents agree that making work and individual tasks more game-like makes them more productive.

Also, research indicates that some employees genuinely enjoy game-based learning — 30% of respondents find it engaging. Some US companies even organize training programs with gaming elements. When it comes to employees who attend such programs, 83% of them feel motivated to work.

Some people thrive in a competitive environment — and a gaming approach to work tasks can be seen as competitive if more people from the team get involved.

🎓 20+ Best Time Management Games & Activities

Productivity booster #3: Technology

Technological and AI advancements have had a significant impact on workplace efficiency across various industries. In fact, using adequate software can:

• Increase performance possibilities,
• Provide easier and instant communication, and
• Lower the margin of error.

Here’s what you need to know about the statistics on achieving productivity with technology.

Time tracking software increases productivity by 47%

Time tracking tools are a modern and improved version of writing your schedule in a planner. People often don’t fully grasp the importance of time management, and a whopping 82% don’t have a time management system in place to maximize the use of their very limited time.

To achieve work-life balance, you must understand how much time you need for a certain task. That’s where a time tracker like Clockify can jump in and help you understand your habits, performance, and productivity level, all in order to improve.

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Productivity statistics from a Forbes article point to a 47% increase in productivity levels among California-based employees who use time-tracking software.

What happens when we fail to track our time properly?

As we can learn from Finances Online:

• The annual cost of time theft for US employers is a whopping $400 billion, and
• 74% of employers suffer losses directly due to buddy punching.

The same survey mentions a company in California that managed to save more than $22,000 per year by using time tracking software.

If we understand just how limited the resource of time is, we can allocate our daily, weekly, and monthly tasks accordingly.

🎓 Time Tracking Benefits

What decreases productivity?

Many factors can negatively impact your productivity levels. So, it’s essential to learn to recognize this, as that’s the first step in getting the most out of your day.

Now, let’s see what happens if we ignore our productivity habits and our environment.

After all, only once you’re aware of the factors that lower your productivity can you act on them.

Low productivity cause #1: Poor employee engagement

Productivity statistics from the aforementioned Gallup State of the Global Workplace report include a shocking detail — the cost of low workforce productivity due to disengagement is $9.6 trillion.

The main factor the report examined was the lack of employee engagement — which plays a crucial role in employee productivity.

According to the said report, employee engagement decreased by 2%, compared to the previous year, falling to 21%.

Here’s how the numbers changed over the years:

As the numbers indicate, employee engagement began to decline in 2024. On top of that, less than one-quarter of the global workforce is actively engaged in their job.

The vast majority of employees — 79%, who feel disengaged and are thus less productive — contribute to the loss of trillions of dollars per year. Therefore, some effort needs to be made to help employees feel more engaged in their jobs, which would result in increased productivity, i.e., reduced monetary loss.

Low productivity cause #2: Excessive use of technology

Technology can be one of the greatest assets and significantly ease the process of achieving your desired goals. However, if not adequately used, it can become an obstacle to your productivity.

That’s why we need to carefully choose the right number and combination of tools.

Even though almost everyone agrees about the advantages of using digital tools, there’s a limit to the number of tools that can be useful.

When workers are required to switch between different apps frequently, not only do they lose time in this process, but it’s also easier for them to get distracted.

For example, a Harvard Business Review study found that employees switch between apps and websites an average of 1,200 times a day. According to the study, the time spent reorganizing between switches is approximately 2 seconds.

Over the course of 1 week, these employees spend 4 hours just refocusing after switching from one app to another.

On an annual level, that translates to 5 working weeks wasted per employee. That’s 9% of employee work time per year. Ouch!

🎓 How to Stay Focused at Work: 20 Effective Tips & Tricks

Low productivity cause #3: Stress, fatigue, and the role of our surroundings

From everyday responsibilities to traumatic events, both stress and fatigue are natural reactions that everyone experiences. Their impact on our performance is evident because both affect not only our bodies but also our feelings, thoughts, and behavior.

There’s a myriad of potential stressors just waiting for us to fall into their trap, and one thing’s for sure — the surrounding environment is often to blame. From the room temperature to the people we’re engaging with at the moment, we can’t stay indifferent to what happens around us.

In all those instances, productivity is also affected.

That’s another common way our productivity levels are reduced, so it’s crucial to recognize the symptoms and act on them.

🎓 Emotional Labor: What It Is and What It Is Not, and How to Manage It

41% of people agree that stress harms their productivity

As many as 41% of people admit that stress causes a loss in their productivity. A study of worksites in Kansas, published in the National Library of Medicine, also confirms the correlation between higher stress and lower productivity.

This is a problem because a staggering 43% of Americans reported feeling more stressed and anxious in 2024 than they had in the previous year.

What’s more, the American Institute of Stress reported that 47% of employees believe the majority of their stress is work-related.

There are many other reasons a person can feel stressed, including:

• Personal relationships, 
• Health, and 
• Financial issues.

Yet, if we want our job performance to be the best it can be, we should learn how to stay focused while dealing with a personal crisis.

For example, take some time to develop a strategy and put it into your schedule.

It may sound strange to dedicate a period of time to thinking about why you’re stressed, but it’ll bring you some perspective and focus.

High levels of fatigue decrease performance by 33%

To function at our full capacity, our bodies need to get enough rest, and our brains need to go through all the stages of sleep (3 non-REM and 1 REM stage).

Not getting enough sleep (at least 7 hours is recommended for adults) can lead to a high level of fatigue throughout the day.

Alexia Cambon, a research director at Gartner, gave an interview to Forbes, detailing the results of their study on the impact of fatigue on employee performance. In fact, she pointed out that fatigue can decrease performance by as much as 33%.

Living in the digital age often means living on the go, and the way technology shapes our lives highly impacts how we allocate time to various activities.

Although it’s not recommended to use digital devices at least an hour before bed, most of us do. A whopping 79% of people surveyed by Sleepopolis admitted to sleeping less at least 3 times a week due to excessive screen time. 

That’s just one of many reasons why people often end up sleep-deprived. Moreover, sleep deprivation can negatively affect your mental health. The aforementioned Forbes article also states that fatigue can reduce feelingsof inclusion by 44%. It turns out that such workers are 54% more likely to leave their employers.

People are 4-10% less productive when the room temperature isn’t optimal

When the surrounding conditions aren’t optimal, they become a distraction for both our body and our mind. Why?

Well, it’s hard to concentrate when you’re shivering or sweating.

Now, we can’t say what a perfect temperature is, as it varies from person to person. However, we can point to these 2 productivity statistics:

• Low temperatures cause drops in productivity levels by 4%, while
• High temperatures cause a 10% drop in productivity levels.

So, make an effort to find the optimal room temperature for your designated work space.

🎓 Habits and Daily Routines of Successful People

Low productivity cause #4: Poor work habits

Some of the most common bad habits in the workplace are:

• Procrastination,
• Distractions,
• Inability to accept feedback,
• Not taking regular breaks, and
• Not being a team player.

When an employee struggles to break such habits, it’s not only reflected in their professional achievements, but it also negatively impacts the whole company.

Learning how to recognize that you’re not using your full potential is the first step in taking action to improve.

So, let’s check out which bad habits impact productivity, and in what way.

🎓 Don’t Break the Chain: A Productivity Technique for Building Good Habits

99% of employees admit to procrastinating

Many people tend to procrastinate. Sometimes, we do so because we find it difficult to start working on a task.

Now, how many employees procrastinate at work?

According to Forbes, a shocking 99% of Americans admit to putting off tasks. Another interesting fact is that as many as 78% of workers reported feeling anxious when they procrastinate.

Equally worrying, a different study showed that between 30% and 65% of employees spend a portion of their work time on activities unrelated to work.

Evidently, procrastination makes you lose the time you could spend being productive, harming both employers and employees.

🎓 Procrastination Guide: Why It Happens and How to Overcome It

Multitasking can decrease productivity rates by 40%

Many people consider themselves great at multitasking and believe they’re saving time that way.

However, it turns out that’s simply not true — or at least, it’s not true for the vast majority of people.

Research indicates that only about 2.5% of people can truly multitask. What most people actually consider to be multitasking is, in fact, task-switching. In other words, a person is completely focused on a task and then redirects their focus to another task.

Statistics show that what we do while we think we’re multitasking can lower our performance and productivity by a staggering 40%.

So, when switching between projects or tasks, make sure you’re not sacrificing productivity.

After distractions, it takes 23 minutes to regain focus

Being focused is a key element of productivity. This implies paying attention and doing a task without interruptions.

Think of the last time you were in “the zone” and someone interrupted you — it was frustrating, right?

Evidently, such a disruption costs us up to 25 minutes of productivity. That’s how long it takes for our brain to get fully focused on the task we were doing before we were distracted.

And, cue the bad news —79% of people feel distracted at work, while 73.2% find distractions overwhelming.

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86% of executives agree that ineffective communication lowers productivity

Effective communication is the key element in every interaction.

To convey their message properly, people try to find the right words and avoid misunderstandings. However, when that doesn’t happen, productivity is affected — especially in the workplace.

Productivity statistics reveal that 86% of executives believe ineffective communication is the primary cause of all productivity-related issues and work failures.

That’s because workplace communication is often expected to be concise. It can even be considered impolite if you’re not concise during meetings, when writing an email, etc.

For this reason, everyone needs to work on improving their communication — for the sake of improving productivity on the whole.

Low productivity cause #5: Excessive meetings

Another factor that can negatively affect workforce productivity are meetings.

Attending too many meetings results in having less time to focus on actual work and finish significant tasks.

🎓 Parkinson’s Law: Why You Waste Time and How to Avoid It

Meetings are unproductive half of the time

According to Harvard Business Review, a staggering 92% of employees agree that meetings are often unproductive. Moreover, the same survey indicates that fewer meetings result in up to a 71% increase in productivity.

Despite this, a study by Ovum & LogMeIn found that employers are holding increasingly more meetings as of 2024. Namely, a staggering 91% of respondents reported that the number of meetings they have to attend is either more or the same as before.

According to the same study, as many as 67% of workers consider over half of the meetings they attend to be pointless.

This doesn’t mean meetings are ineffective in general — they just need to be organized strategically. To be more productive, ensure your meetings stay relevant and eliminate those that are unnecessary.

Workplace productivity statistics

Every successful business owner knows that tracking and managing productivity among employees makes all the difference.

Not only is there a direct correlation between productivity and revenue, but there’s also one between productivity and employee morale.

Over the past couple of years, working conditions have undergone significant changes, and the adoption rates of non-traditional work models have skyrocketed.

As of 2025, this is the distribution of work locations among the US full-time employees according to Gallup’s data:

• On-site — 21%,
• Remote — 27%, and
• Hybrid — 52%.

Let’s see what that means for the productivity of remote, in-office, and hybrid workers.

Remote work productivity statistics

The global workforce is rapidly embracing the shift to a new work model, as the remote model has demonstrated positive results in terms of productivity.

The digital workspace removed many redundant aspects of work life and distractions, such as:

• Needlessly long meetings,
• Time spent commuting,
• Chatty coworkers, etc.

Many remote working productivity statistics indicate that this work model has a positive impact on employee effectiveness.

According to Microsoft’s report, Great Expectations: Making Hybrid Work Work, 80% of employees stated that they’ve been as productive or more productive since starting towork remotely.

Here are some additional interesting statistics on remote work and productivity.

71% of companies offer at least some amount of remote work

Buffer’s 2023 State of Remote Work survey revealed that as many as 71% of companies offer remote work at least in some capacity (same as the previous year).

When it comes to further division of the remote work structure, here are the respondents’ current places of work:

• 64% — fully remote,
• 18% — hybrid and remote-first,
• 9% — hybrid and office-occasional, and
• 9% — hybrid and office-first, remote allowed.

The data indicate that an increasing number of employees are working remotely. The percentage of fully remote workers moved up from 49% to 64% in just one year.

🎓 Overcome Remote Work Challenges — Expert Insights

Two-thirds of remote workers struggle with staying home too much

One of the biggest issues when working remotely is that employees often lack clear boundaries between work time and personal time.

Apart from this problem, many workers also miss the opportunity to chat and interact with coworkers face-to-face.

The aforementioned Buffer report also examined the main struggles of working remotely. The statement that topped the list was “staying home too often with no reason to leave” — two-thirds of remote workers agreed.

Other struggles of remote work employees experience are:

• 23% — loneliness,
• 22% — difficulty disconnecting from work,
• 19% — difficulty working across time zones,
• 16% — difficulty focusing,
• 15% — difficulty collaborating and communicating with colleagues.

So, how can employees feel more connected to each other when not working in the same office?

The aforementioned survey suggests some solutions, such as working from coworkingspaces, which helps alleviate feelings of loneliness.

Office work productivity statistics

Working in a traditional office space puts some people in the correct mindset, and the environment itself boosts their productivity. However, office work doesn’t suit everyone.

Let’s see what research has shown regarding office work and productivity.

🎓 10+ Life-Changing Tips to Increase Office Productivity

57% of employees would consider switching jobs if they had to return to the office

According to FlexJobs, only 7% of workers feel most productive in the office.

Recently, people have been increasingly embracing the advantages of hybrid and remote work. However, another FlexJobs report indicates that 23% of survey respondents faced return-to-office mandates.

As per the same report, 35% of employees know someone who quit their job because they didn’t want to return to the office.

In addition, over half (57%) of the respondents stated that they would start looking for another role if they were asked to work from the office full-time.

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As many as 80% of office workers can’t work for more than an hour without being distracted

According to Fast Company, losing focus in the office is a major problem, as it hinders productivity. A staggering 80% of workers admitted they can only work fully focused up to an hour before getting distracted.

Common workplace distractions include:

• Chatty coworkers (72% of respondents), and
• Phone notifications (62% of respondents).

37% of jobs can be done fully remotely

As CNBC reports, over one-third (37%) of jobs in the US don’t require coming to the office.

Moreover, employees would rather have a lower income than regularly commute to the office — the same article reports that employees would take a 14% pay cut if that would allow them to work remotely. In fact, the number is even higher for parents with younger children — 20%.

Recently, both employers and employees have started embracing the advantages of remote work, as it is a definition of a win-win situation. 

One of the main issues for business owners was how to ensure that their remote employees were actually working.

Fortunately, that issue can be easily resolved with the available tools, combined with prioritizing asynchronous communication and fostering trust among team members. Here’s what the remote worker’s basic toolkit usually consists of:

• Time and goal tracking software,
• Communication and chat apps,
• Project and task management tool, and
• A video conferencing tool.

Now let’s see what numbers have shown regarding hybrid work and productivity.

Hybrid work productivity statistics

Innovative companies had begun introducing a hybrid work model long before the pandemic.

In short, the hybrid model implies:

• Flexible working hours,
• A combination of remote and in-office work, or
• Both.

Here are the numbers that illustrate the connection between hybrid work and productivity.

🎓 What is Flex Time? A Quick Guide to Flexible Working

58% of Americans can work from home at least once a week

Some people simply don’t have the conditions to work from home, but it’s great that more and more companies are offering the option.

McKinsey’s report revealed that 92 million employees in the US (i.e., 58% of the US workforce) have the opportunity to work remotely, at least part of the time.

Another revelation from this survey is that for 35% of workers, the remote option applies to all 5 days.

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52% of employees say the hybrid work model increased their productivity

According to Gallup’s 2025 report, 52% of respondents who work according to the hybrid model feel more productive. Other benefits hybrid workers noted include:

• Better work-life balance — 76%,
• More efficient use of time — 64%,
• Reduced burnout/fatigue at work — 61%, and
• More flexibility regarding time and place of work — 57%.

Moreover, many European countries are slowly embracing a four-day workweek, allowing people to spend more time with friends, family, and on leisure activities.

The impact on mental health was so positive that the productivity rates increased.

Furthermore, the total weekly workload wasn’t impacted in the vast majority of cases.

Interesting productivity statistics in the workplace worldwide

As with basically everything else in life, certain distinctions exist depending on the part of the world.

So, before we get to the latest trends and wrap up the article, we’ll share several country-specific interesting details about productivity.

Luxembourg is the most productive country in the world

If you’re wondering how to measure employee performance in terms of productivity on a country scale, it’s just simple math.

The equation is gross domestic product per hour worked.

The equation suggests that Luxembourg is the most productive country in the world, followed by Ireland and Norway, according to the aforementioned data by the International Labour Organization (ILO).

Of course, the number of working hours varies by country, and different industries are at the forefront.

However, since we can’t calculate all that, let’s see the full list of the top 10 most productive countries by the equation we’ve mentioned.

The numbers indicate the average hourly contribution of a worker to the country’s economy.

In South Korea, productivity per hour grew a whopping 2,559% in less than 70 years

Productivity statistics by country reveal the staggering change in productivity in the period 1950–2019.

For example, Our World in Data also indicates that workers in the US saw a 272% increase in productivity in 69 years. During the same period, productivity in the UK increased by 426%.

However, the increase in South Korea is undoubtedly the highest reported — 2,559%. Two other highly productive countries that followed are:

• Taiwan with a 2,558% increase in productivity, and
• Ireland with a 2,290% increase in productivity.

The percentages indicate a relative change in the overall productivity levels, which is a different category from the absolute change. The latter one refers to the wage increase — and all the discrepancies can be attributed to the pay-productivity gap.

4-day work week trials showed shorter hours result in better productivity

Iceland was a pioneer in implementing the 4-day workweek and introducing shorter hours, hoping to prove that it doesn’t affect the workload. Two experimental trials conducted from 2015 to 2019 proved to be a major success.

Not only was the weekly workload completed, but the employees reported being more productive than usual. Interestingly, the result included:

• Improved balance between personal and professional life,
• Happier employees, and
• Recognizing the importance of their personal lives and overall well-being.

As of 2021, a stunning 86% of the country’s workforce has either reduced their hours or has the right to negotiate such conditions.

In 2022, Belgium and the UK introduced a shorter workweek, starting a 6-month trial. Some other European countries that are considering or have already started such trials are:

• Wales,
• Scotland,
• Spain,
• Germany, and
• Portugal.

Apart from Europe, large corporations in Japan are considering a 4-day workweek. Also, following the successful results of the first 4-week trial, Unilever in Australia and New Zealand has extended the trials.

European employees prefer the remote and hybrid work models

According to Future Media, remote work options in Europe have been in decline since 2023. The amount of fully remote jobs decreased from 24% in 2022 to 14% in 2024.

Of course, the degree of job flexibility varies across European countries.

For example, the Netherlands tops the list of countries with the most flexible work arrangements, with 77.5% of employees working remotely (either partially or fully). Only 22.5% never work from home.

Other countries that have many remote workers include:

• Ireland — 72.5%, 
• Finland — 70%,
• Germany — 69%,
• Belgium — 66%, and
• Sweden — 65%.

On the other hand, in Cyprus, 23.5% of employees work from home, while the remaining 76.5% always work on-site. 

When it comes to employee work arrangement preferences, as many as 74% of EU workers prefer to work remotely at least some of the time: 

• 31% prefer to work from home a few times a week,
• 24% prefer to work remotely full time, and
• 18% prefer to work on-site.

Therefore, despite the decline in remote and hybrid work options, these work arrangements remain in high demand in Europe.

Denmark is the best country for remote workers

Denmark is considered to be the best country for remote work based on several factors, including:

• Cybersecurity,
• Economic and social safety, and
• Digital and physical infrastructure.

Apart from Denmark, here are other countries ranked as the best choices for remote work:

• Netherlands,
• Germany,
• Spain,
• Sweden, and
• Portugal.

So, working from one of these countries may boost the benefits of remote work and minimize the negative aspects — resulting in more productivity when working outside the office.

Productivity trends for the future

Now let’s check out how technological advancements contribute to and shape the future of work, and therefore, productivity as well.

Here are the top trends that companies worldwide should implement to stay competitive and ahead of the curve.

Productivity trend #1: Addressing questions regarding the use of AI to increase productivity

While AI can help reduce some workload and might improve productivity in some areas — it has the potential to decrease productivity in some cases.

For example, an employee using AI may rely on inaccurate information to produce work, resulting in errors that require correction. This would cost the company both time and money.

That’s why, according to Gartner, organizations are preparing to introduce clear guidelines for the use of AI at work.

Productivity trend #2: Addressing quiet quitting to increase productivity

It’s time for everyone to acknowledge that quiet quitting is a real phenomenon. As per Gallup’s research, at least half of the US workforce are “quiet quitters.”

The term refers to employees who do the bare minimum at their job, thereby negatively affecting overall productivity in the workplace. 

We’re not saying everyone should go above and beyond at all times, but the fact is that the ratio of engaged to actively disengaged employees is the lowest it has been in nearly a decade.

That’s why managers must find ways not only to engage employees, but also to:

• Contribute to the employee development,
• Establish rapport with employees, and
• Enrich their company culture and organizational purpose.

One thing is for sure — leaders agree that the future of work is hybrid.

🎓 What Is Quiet Quitting: Definition, Origin, and Tips

Productivity trend #3: Employing empathetic leadership to increase productivity

It’s only natural that every employee likes to be valued and perceived as an important part of the organizational network. With the aim of increasing the employee retention rates, the latest trend in leadership revolves around empathy.

According to an EY study that surveyed 1,000 US workers, a whopping 85% of US employees believe that empathetic leadership results in higher productivity. The majority of respondents also agree that empathy in the workplace inspires:

• Positive changes at work — 87%,
• Respect between leaders and employees — 87%, and
• Less employee turnover — 78%.

So, the message is quite clear — invest in employees’ well-being, increase transparency, and embrace employee individuality.

Employers who perceive their employees as people, not only the workforce, have better results, lower retention rates, and higher productivity rates.

Workplace productivity implications on business performance

An unproductive, disengaged workforce is a common problem — and it leads to unnecessary costs.

To put things in perspective, let’s calculate how much money one company may lose due to low employee productivity.

Let’s say the average salary in this company is $65,000 a year. If employees spend at least 1 hour on social media or other non-work-related activities, that’s around 14% of time wasted per 1 work day. In fact, this amounts to a minimum annual monetaryloss of $9,100 per employee.

On the other hand, high-performing teams can significantly boost company growth. And as we’ve mentioned before, engaged teams are 23% more profitable.

In theory, if a small business generates an annual revenue of $1,200,000, having more engaged teams would boost the revenue up to around $1,470,000.

To summarize, research suggests that investing in employee engagement can reduce financial losses associated with low productivity. 

FAQs on workplace productivity

Here are the answers to some of the most frequently asked questions about productivity in the workplace.

What are the 3 Ps of productivity?

The 3Ps of productivity refer to a 3-step strategy to becoming more productive. These 3Ps are defined differently by different authors. One version includes the following steps: plan, process, and persist.

What are the 4 types of productivity measures?

The 4 types of productivity measures are capital productivity, material productivity, labor productivity, and total factor productivity.

We’ve already discussed how to calculate labor productivity and total factor productivity above — but what are the other 2 productivity measures?

Capital productivity refers to how well the workers are using business assets (such as office equipment and warehouse supplies) to produce goods or services. 

Material productivity takes into account the amount of materials spent (such as fuel) compared to the value of goods produced.

What is the 1-3-5 rule of productivity?

The 1-3-5 rule of productivity is a technique meant to help people organize their to-do lists more efficiently. Essentially, 1 represents 1 large task, 3 represents 3 medium tasks, and 5 represents 5 small tasks.

What is the 80/20 rule of productivity?

According to the 80/20 rule, 80% of the results come from 20% of the effort. 

Track time with Clockify to maximize productivity

You can improve your productivity in many ways, from playing background music to removing all distractions. However, tracking your time is surely the best thing you can do to increase your overall productivity.

Knowing where your time goes and finding ways to manage it is crucial to becoming the most productive version of yourself (and helping your team do the same). 

If you rely on traditional methods, such as timesheets and time cards, we recommend trying Clockify — a powerful and intuitive time-tracking software.

Clockify can help you become more productive by:

• Tracking time across tasks and projects digitally,
• Summarizing your time entries (percentages, estimates, and overall time usage),
• Giving you insight into your teams’ availability and time entries, and
• Helping you locate time wasters to improve your scheduling skills.

An especially useful Clockify feature is reports. In a nutshell, reports give you a complete overview of how you spend your work hours and show the total amount of work time and billable hours. Furthermore, reports show the duration of each project, its total cost, and profit.

As we’ve seen, current statistics show that procrastination and employee disengagement are quite common problems that lead to decreased productivity.

Time tracking helps improve productivity by giving you and your team insight into where you spend your time and keeping you accountable.