(Last Updated On: June 19, 2023)

When we look at the word productivity, sometimes it can really be seen as a negative idea, or something with a bad connotation. However, productivity is something that is necessary in any business and it must always be under scrutiny. Without productivity, a business cannot increase profit and a lack of productivity can also increase stress!

Return on Investment

Automatically, one of the first benefits of an increase in productivity is you are going to experience a larger return on your investments in the business. As you increase your return on investment, you are also going to increase the value of the business, the types of programs that you can offer employees, and you’re going to also watch your business soar. 

As you’re able to hire more employees you’re going to find that your return on your investment is going to exponentially grow.

Increase Profit

Alongside a return on investment, you’re going to find an increase in profit. As your productivity increases, your profit will also increase. 

This often means making sure that you are utilizing all available resources in order to increase that profit. Profit increases therefore business size increases, and employee amount increases as well.  It all leads to a constant increase in profit.

Lower Operational Costs

Something that you also have to keep in mind, is that if your productivity is increasing, then the amount of time needed in the office space actually decreases. 

If you are also someone looking to utilize answering services then it’s best to keep in mind that these types of services actually lower your operational costs for your business! All in all, decreasing the amount of time in the office and utilizing additional resources are going to decrease your operational costs.

Optimizes Resources

If your productivity is low, then essentially you’re not getting the most out of what resources you have decided to utilize for your business. At that moment,  the business is showing a decrease in investment as well as an inability to utilize resources properly. 

When this type of issue happens, it’s time to stop and reassess what resources you are using and how you are using  them. Higher productivity allows for the full optimization of any resources that you have invested in for your business. This means that the team is working effectively, the product is being managed, and any additional resources are optimized.

Enhanced Teamwork and Morale

If you had told me two years ago that an increase in productivity would lead to an increase in morale in a company, I would have looked at you as though you were speaking a different language. 

However in order to increase productivity you have to increase teamwork and morale at the same time. If your team is not getting the amount of work done that they need to, that’s going to really take a toll on their self-esteem as well as their ability to work together. This is where you as a boss or manager come in and help your team work together to reach productivity goals.

Remember, when you have a team of people working with you, they are more than likely just as invested in the product as you are. If there are processes that are in the way, or there are issues that keep interrupting the ability of your people to complete their job, that is going to heavily affect the workplace morale. 

Essentially,  low workplace morale can be caused by low productivity. Higher morale is going to lead to higher productivity. But this is only if you are paying attention to what it is that your team needs in order to succeed. 

Decrease in Unnecessary Processes

Something that I’ve watched happen time and time again is the lack of changing processes. Some people are going to do it too much, some people are not going to change processes enough. 

It’s all going to depend upon what the business is and what exactly is needed. Sometimes a business needs to reassess their processes every quarterto maintain productivity. 

Depending on how quickly a work environment is changing, or how quickly a specific area of business is updating, those processes may have to be changed even faster! This is all going to depend upon what kind of business you have and what kind of goals you have.


Overall, productivity is an interrelationship between your team, the product, the services you use, as well as how you interact with your team. When you increase productivity over time, this is going to also increase the morale of your team, and their individual investment in the business.