In today’s competitive landscape, a 5% increase in profit is often celebrated. But what if your company could increase profits by 50% or more—not by working harder, but by boosting employee engagement and working smarter?
The secret lies in one of the most overlooked assets in business: employee productivity.
The $10 Million Wake-Up Call
Let’s take a company with a $10 million annual operating budget—entirely spent on employee salaries. According to Gallup, only 31% of U.S. employees are engaged at work (Gallup, 2023). That means nearly $7 million is being spent on disengaged labor—talent that’s showing up physically, but not mentally, emotionally, or creatively.
Imagine any other investment where 69% of your return is lost. It would be considered unacceptable. But when it comes to people—the very engine of your business—this level of waste has become normalized.
Now consider this: what if you could raise employee engagement to 60%?
You wouldn’t just get marginally more output—you’d nearly double the productivity of your workforce. That means more work gets done, faster and better, with no increase in headcount or salaries. When productivity doubles, profits can double, too.
Compare that to the conventional 5% profit growth strategy—new products, new markets, cost-cutting. All high-effort, high-risk moves. Boosting employee engagement and productivity is internal, controllable, and transformative.
The Broader Business Benefits of Productivity
Investing in productivity isn’t just about cutting waste or squeezing more out of people. Done right, it’s about unlocking potential—and that has benefits far beyond the balance sheet.
Here’s what companies gain when they build a culture of employee engagement and productivity:
1. Higher Employee Retention and Satisfaction
Productivity often results from employees feeling engaged, supported, and clear on their purpose. That leads to:
- Lower turnover
- Stronger team loyalty
- Better morale and team cohesion
Engaged employees are 87% less likely to leave their organization compared to disengaged ones (Gallup, 2023).
Case in Point: Campbell Soup Company
In the early 2000s, Campbell was in decline, with low morale and high turnover. CEO Doug Conant made productivity a culture-first mission, investing in leadership development, trust, and recognition.
Results:
- Engagement rose from the bottom quartile to world-class levels (ConantLeadership, 2016)
- Market value increased from $2.1 billion to $7.2 billion
2. Better Customer Experiences
Productive employees deliver faster, more consistently, and with greater care. This translates into:
- Higher customer satisfaction
- Stronger client retention
- More referrals and positive reviews.
When employees thrive, customers notice.
3. Faster Innovation and Better Problem-Solving
A productive environment is usually:
- Aligned with goals
- Collaborative
- Encouraging new ideas
This kind of culture fosters rapid innovation and smarter problem-solving across every level of the business.
Case in Point: Microsoft Japan’s 4-Day Workweek
In 2019, Microsoft Japan piloted a four-day workweek called the “Work-Life Choice Challenge” while maintaining full pay.
Results:
Employee satisfaction increased significantly
(Source: Microsoft Japan, 2019; CNBC, 2019)
Productivity rose by 40%
Electricity usage dropped by 23%
4. More Efficient Use of Time and Resources
High productivity often stems from:
- Clear priorities
- Streamlined processes
- Eliminating unnecessary tasks
That leads to less waste, more focused work, and better outcomes with fewer resources.
Case in Point: Best Buy’s ROWE (Results-Only Work Environment)
Best Buy implemented a radical flexibility policy at its headquarters where employees could work whenever and wherever, so long as results were met.
Results:
Employee stress levels decreased
(Source: Harvard Business Review, 2010)
Productivity rose 35%
Voluntary turnover dropped by 45%
5. A Stronger, More Positive Culture
When people feel their work matters, it transforms workplace culture. You get:
- More ownership and accountability
- More peer encouragement and shared wins
- A culture that sustains excellence
6. Greater Resilience in Tough Times
Engaged, productive teams:
- Respond faster to challenges
- Adapt better to change
- Maintain morale under pressure
This gives your business a competitive edge, even in downturns.
7. A Magnetic Employer Brand
Companies known for high productivity and healthy cultures attract:
- Top-tier talent
- Mission-driven professionals
- Interest from investors and partners
It’s a recruitment advantage that money can’t buy.
This Isn’t Theory—It’s Proven
Whether it’s Microsoft, Campbell Soup Company, or Best Buy, the message is clear: employee engagement and productivity are a competitive advantage. It’s not just a tool for getting more done—it’s a strategy for building better companies.
The Bottom Line
The real question isn’t whether you can afford to invest in productivity. It’s:
Can you afford not to?
Disengagement is expensive. A culture of productivity doesn’t just cut that cost—it transforms it into growth, loyalty, innovation, and long-term profitability.
In a world where so many companies settle for average engagement, those who invest in people—and the systems that help them thrive—will lead the future of work.
References
Clifford, C. (2019, November 4). Microsoft Japan’s 4-day workweek boosted productivity by 40%. CNBC. https://www.cnbc.com/2019/11/04/microsoft-japan-4-day-workweek-boosted-productivity-40percent.html
ConantLeadership. (2016, February 22). How Doug Conant changed the culture at Campbell Soup. https://conantleadership.com/how-doug-conant-changed-the-culture-at-campbell-soup/
Gallup. (2022). Employee engagement meta-analysis: 2022 update. https://www.gallup.com/workplace/398926/employee-engagement-meta-analysis.aspx
Gallup. (2023). State of the global workplace: 2023 report. https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx
Microsoft Japan. (2019). Work-Life Choice Challenge 2019 Summer results. Microsoft Newsroom Japan. https://news.microsoft.com/ja-jp/2019/11/04/191104-news-work-life-choice-challenge/
Moen, P., Kelly, E. L., Fan, W., Lee, S. R., Almeida, D., Kossek, E. E., & Buxton, O. M. (2011). Does a flexibility/support organizational initiative improve high-tech employees’ well-being and effectiveness? Evidence from the Work, Family, and Health Network. American Sociological Review, 76(2), 265–290. https://doi.org/10.1177/0003122411400056
Image Credit
InspiredPencil. (2023). Happy employee. Retrieved from https://ar.inspiredpencil.com/pictures-2023/happy-employee
