Productivity has quickly risen as an important talking point in the corporate world. It is now used as an important parameter to measure the efficiency and growth of a company and its employees. As productivity is measured as the efficiency of work done in a particular amount of time, it is an important factor of the quality of work done. But with other factors like time efficiency and profits made that are used, why is productivity important in the long run?

Why is productivity important?

why is productivity important

Benefits of productivity are obvious for measuring the basic growth of the company and an employee. But do these benefits justify why is productivity important? Let’s find out:

  1. Higher profits

Productivity of oneself or of a company’s employees influences more than a few parameters. Goals and targets are set based on the total productivity of the person.

Thus as a person’s productivity increases, a higher target can be set for the person to achieve. This helps in personal growth as the company too benefits from better productivity. Thus as higher targets are achieved in a shorter span of time, profits made by the company also increase. Notably, these profits are made at the same labour cost as the same person is now more productive.

With better productivity, time efficiency also increases. As more work gets done with, the profits made by the company automatically increase. Thus high productivity benefits everyone involved alike.

  1. Lowering Operational Costs

As productivity increases, the amount of time taken to complete the same amount of work decreases. As one begins to utilise lesser work hours to complete their tasks, the labour costs are bound to decrease. Thus more work can be done in the same amount of time at the same cost of labour. This further adds on to the company profits. 

Now, with the introduction of the work from home method, it is seen that more work is done from the comfort of our homes. This has further contributed better productivity and hence, lesser stress and anxiety. A healthy mental health is a prerequisite tool for productivity.

  1. Improving Competitiveness

Increased productivity leads to higher competitiveness. This sentiment of competition can lead to overall growth of all the employees when promoted in a healthy way. As gets more work done, the number of clients they serve and the number of tasks they do also increases. This motivates the other employees to work better and efficiently too.

Higher competition also makes way for setting new targets for the employees to achieve and surpass. Organizing rewards for better performance can also promote higher productivity due to competitiveness.

  1. Seizing The Opportunity For Growth

As efficiency in a workplace increases, the tasks are completed faster. Thus time is still left unutilised even after the prioritized tasks are done. This leftover time opens avenues for further growth of the person. But often this time is used up in doing shallow work and mundane tasks that do not contribute to the growth of the person. This can nullify the whole purpose of increased productivity. Then how must one utilise this extra time?

This extra time can be made worthwhile by either learning new skills that better the person’s skillset. Thus this makes way for professional as well as personal growth. The time can also be used to rest and re-energize oneself for better work energy later. This is the reason why productivity is important.

  1. Greater fulfillment

Higher productivity does help to directly improve a person’ work output. This allows the person to get more work done as they become more time efficient. With this as a tool for time efficiency, one gains satisfaction with one’s work. But this is not the only reason why productivity is important.

Reduced stress and increased control on one’s work ethic is one major benefit. This added with an improvement in one’s well‐being and better focus levels is another reason why productivity is important. As one gains more personal time with better time efficiency, this time can also be used to get healthier, to exercise and gain mental peace. Thus this does not only help your work life but also your personal health and well-being.


Better productivity is essential for the betterment of a company and its employees. Thus, the mental and physical health of employees is also seen. High productivity can be easily achieved but one must be wary that it doesn’t lead to burnouts. Using methods like deep work and understanding its benefits, can help you achieve the productivity levels you desire.