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Employee Productivity: Here’s What Really Matters

Employee Productivity: Here’s What Really Matters

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Employee Productivity: Here’s What Really Matters

Today’s business leaders are dealing with a lot.

Along with the technology-shaped elephant in the room, the increase in internal business collaboration (50 percent in the past two decades), the change in performance management and the influx of millennials have left many companies scrambling.

Despite these changes, the goals of businesses have remained constant: Generate revenue in the most efficient way possible, and no matter what industry you’re in, the productivity of your employees matters.

The Productivity Constant

However, many businesses struggle to quantify their employee productivity, and for good reason: The shift from a manufacturing to a knowledge-based economy has forced many leaders to reconsider how they measure and inspire productivity.

However, productivity is still a metric worth considering. As with any difficult task, a step-by-step methodology is typically the best place to start.

  1. Define what employee productivity means to your business, and determine the metrics you want to use to measure it.
  2. Test and retest productivity efforts on your workforce until you figure out what works.
  3. Learn from your failures, and repeat your successes.

 

Let’s take a deeper dive into these steps.

Defining and Measuring Productivity

Every business is different; therefore, how businesses measure productivity should vary. Working with team leaders to identify what it actually looks like in your business is the first step to increasing it.

Keep in mind, definitions can be deceivingly thorny, so much so that HR and business leaders have had to endure a myriad of recommendations, from the vague (“be more strategic”) to the vapid (“paint your walls yellow, make more money”). Thought leaders constantly drop words like “culture” and “engagement,” and sometimes tie them holistically to an employee’s output, placing pressure on many businesses to either adapt or disappear.

One example of this difficulty lies in the connection between productivity and employee engagement.

In the past, if employees agreed with statements like “Company X is a great place to work,” they were considered “engaged,” while those who answered no were “disengaged.” However, a recent Harvard Business Review study reported that a “yes” to the question simply could mean that particular employee matched well with the corporate culture, while employees who answered “no” just could be dissatisfied with the status quo and looking to make big improvements. In that case, “engaged” employees were no more productive than their “disengaged” counterparts were.

Both engagement and productivity are worthy business objectives, but leaders must clearly outline their goals and then understand the metrics they are using to quantify said goals. Moreover, companies ought to utilize both behavioral and survey data to measure their workforce and then inspire management to take the findings to heart.

Increasing Productivity

Because of such studies, today’s HR and business leaders should make observing and learning from their workforce a top priority. This notion aligns with practices of such successful companies as Google and Southwest, which employ “design thinking.”

According to a recent Deloitte University Press article, “Design thinking moves HR’s focus beyond building programs and processes to a new goal: designing a productive and meaningful employee experience through solutions that are compelling, enjoyable and simple.”

Design thinking begins at the base — the employee — and works from there in order to improve output.

It doesn’t take a psychologist to know that different personalities, backgrounds, strengths and weaknesses exist within a single department; therefore, the ways in which businesses inspire those individuals to work harder and better inherently will vary.

Design thinking helps HR leaders classify people into different groups or “personas,” and once businesses form an understanding of their workforce, they then begin testing measures to inspire those different “personas” to produce. Design thinking is flexible; it tests each finding to its end. If the technique does not work, practitioners view it as a learning experience rather than a failure, and then continue trying different techniques until they figure out the best way to stimulate production from their different groups of workers.

But does design thinking actually work?

According to Deloitte, “The data from our survey this year suggest that the more importance an organization places on design thinking […] the faster the organization grows.”

Business leaders should remain vigilant about the experience of their employees without losing sight of their company’s overarching goals. This precarious balancing act requires constant observation, assessment and the occasional serving of humble pie. However, the result of an empathetic and nimble business is a churning, successful workforce.

Be sure to check out our article about personal productivity and how you are truly only two steps away from inciting increased productivity in your daily life.


Katy Fabrie

by Katy Fabrie


Author Bio: Katy Fabrie is a Marketing Specialist at Paycom where she assists with executing integrated marketing campaigns. With extensive experience in both writing and research, Katy enjoys crafting content that helps HR professionals develop strategies to reach their goals. Katy has created both digital and printed content for a myriad of local and national companies, and she enjoys continually expanding her HR knowledge base. Outside of work, Katy enjoys reading, running and spending time with her husband, Colby, and dog, Fox.

Open positions

Why Its So Difficult to Fill Your Open Positions

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If you feel like it’s getting more and more challenging to find qualified employees to fill your positions, you’re right. New evidence from the Deutsche Bank indicates that the length of time a vacancy lays open has increased overall since 2010. Open positions are increasingly difficult to fill due to several trends within the current labor market. However, there are several actions you can take as a business leader to improve your ability to hire and retain a quality workforce.

Finding and keeping the top-talent your business needs is about to get tougher.

Open Positions Are Staying Vacant Longer

Currently, according to economist Torsten Sløk with the Deutsche Bank, positions are open on average 31 days before being filled. That’s significantly higher than the 24-day average in prerecession 2007, which was the longest span positions stayed vacant since 2001. Job vacancies were filled in about 15 days in 2009, and the length of time it has taken to fill open positions has increased steadily in the eight years since.

Many Business Struggle to Find and Keep Qualified Workers

What does this mean for business leaders? That finding the right worker has become increasingly challenging. The Federal Reserve’s recently released Beige Book notes tightening in labor markets nationwide.

In Pennsylvania, for example, “staffing contacts reported spending more time and money on recruiting labor and refilling positions after the initial hire quit, sometimes after just a few days.”

Additionally, the Federal Reserve’s contacts across the nation and in a variety of industries reported that hiring was limited because there were not enough qualified workers available.

Labor Trends Influencing This Challenge

Some of the reasons cited by the Beige Book included job hopping and a disconnect between companies and job candidates on compensation. Federal Reserve contacts noted “rising wage pressures” in both high- and low-skilled positions. Some also mentioned that the costs of benefits and variable pay were increasing.

Another possible reason employers struggle to find the right people to fill their positions is a growing gap between the skills needed in the workplace and the skills that are available among the workforce. In fact, according to SHRM, we are currently facing “the most acute talent shortage since the Great Recession.”

What It Means For You

It’s now more important than ever to retain your star employees, and attract candidates like them. Having competitive compensation and a culture that appeals to the job seeker can give you an edge in this job market. Consider implementing more in-depth, on-the-job training to address the skills gap, and ensure that you have efficient hiring processes in place to eliminate any wasted time, money and energy.

If you’d like to learn more about current labor trends and what they mean for your business, you can find a wealth of information in our on-demand webinar on current labor trends.

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Posted in Blog, Featured, Talent Acquisition

Jeff York

by Jeff York


Author Bio: Jeff York, Paycom’s chief sales officer, has more than three decades of sales experience and has held a variety of sales management positions; prior to joining Paycom In 2007, York spent 12 years with a legacy payroll provider, where he held a variety of sales management positions including vice president of sales for the major accounts division. York, a Texas Tech University graduate, also holds an MBA from Baylor University’s Hankamer School of Business.

IRS Continues to Enforce Affordable Care Act

IRS Continues to Enforce Affordable Care Act

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The IRS recently released an information letter indicating that the IRS continues to enforce the Affordable Care Act (ACA).

Dated June 30, Letter 2017-0010 was sent to a member of Congress who reached out to the IRS at the request of a constituent, a tax-exempt entity concerned it may owe an employer shared responsibility payment (ESRP) because it did not comply with the ACA rules on offering health insurance to its employees, for both financial and religious reasons.

The letter first provides a brief summary of the circumstances that might lead to a large employer owing an ESRP, and notes that there is no provision in the ACA that provides for the waiver of an ESRP.

The letter then addresses the effect of the president’s Jan. 20 executive order on the enforcement of the ACA. Titled “Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal,” the order directed federal agencies to exercise discretion permitted to them by law to reduce potential burdens imposed by the ACA.

However, it did not change the health care law. The legislative provisions of the ACA are still in force until changed by Congress; therefore, taxpayers remain required to follow the law and pay what they may owe.

For more information on the executive order and the current tax filing season, visit https://www.irs.gov/tax-professionals/aca-information-center-for-tax-professionals.

What This Means for Employers

Since Congress has not yet passed a bill that would repeal the ACA, and Republicans have struggled to draft a bill that would receive majority support, employers should use caution and plan to comply with the law’s requirements unless and until the ACA is repealed and any new law’s provisions actually go into effect. Continued compliance may be required for a transition period, following passage of an ACA repeal bill, depending on the language of that legislation.

 

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Posted in ACA, Blog, Featured

Erin Maxwell

by Erin Maxwell


Author Bio: As a compliance attorney for Paycom, Erin Maxwell monitors legal and regulatory changes at the state and federal level, focusing on health and employee benefits laws, to ensure the Paycom system is updated accordingly. She previously served as assistant general counsel at Asset Servicing Group in Oklahoma City. She holds a bachelor’s degree from the University of Central Oklahoma and a J.D. from the University of Oklahoma. Outside of work, Maxwell enjoys politics, historical mysteries and spending time with her family.

Missouri minimum wage

Missouri Minimum Wage to Decrease from $10 to $7.70

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An overwhelming trend in the U.S. is cities and states increasing the minimum wage employers must pay their employees. However, St. Louis, Missouri is bucking this trend – although not willingly – by decreasing its minimum wage from $10 to $7.70, effective Aug. 28.

Court Battle

In 2015, St. Louis passed an ordinance raising its minimum wage to $10, with an automatic increase to $11 scheduled for January 2018. This prompted the Missouri legislature to pass legislation to pre-empt the ordinance from taking effect. The legislation was quickly enjoined in a lawsuit that went all the way to the Missouri Supreme Court.

In May of this year, St. Louis prevailed in the lawsuit and the minimum wage increased to $10. However, three months after the $10 minimum wage was implemented, the Missouri legislature passed another law disallowing any city in the state from having a higher minimum wage than the state, which is currently $7.70, this forcing St. Louis to reverse.

States vs. Cities

State governments dictating cities’ minimum wages is not altogether uncommon. In 2016, Alabama’s legislature shut down the Birmingham City Council’s efforts to raise its minimum wage. Similar efforts were undertaken by Ohio to block the City of Cleveland.

Other states have preemptively prohibited localities from passing minimum-wage ordinances – even before cities have commenced such efforts. Some of these states include:

  • Colorado
  • Idaho
  • Indiana
  • Kansas
  • Kentucky
  • Michigan
  • North Carolina
  • Oklahoma
  • South Carolina
  • Tennessee
  • Texas
  • Wisconsin

 

Although the St. Louis minimum wage decrease runs counter to the national trend, state legislatures prohibiting local increases is not uncommon. As more cities begin to adopt higher minimum wages, expect some state legislatures to push back.

Disclaimer: This blog includes general information about legal issues and developments in the law. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and must not be taken, as legal advice on any particular set of facts or circumstances. You need to contact a lawyer licensed in your jurisdiction for advice on specific legal problems.

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Posted in Blog, Featured, Payroll

Jason Hines

by Jason Hines


Author Bio: Jason Hines is a Paycom compliance attorney. With more than five years’ experience in the legal field, he monitors developments in human resource laws, rules and regulations to ensure any changes are promptly updated in Paycom’s system for our clients. Previously, he was an attorney at the Oklahoma City law firm Elias, Books, Brown & Nelson. Hines earned a bachelor’s degree from the University of Central Oklahoma and his juris doctor degree from the Oklahoma City University School of Law, where he graduated cum laude. A fan of the Oklahoma City Thunder, Hines also enjoys exploring the great outdoors with his wife and daughter.

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