Employee Productivity KPIs -- How to Improve Employee Productivity

Chris Freitas • 30 May 2023

Employers strive to create an environment where their team members are engaged, motivated, and perform at their best. To achieve this, organizations need to establish effective methods to measure and enhance employee productivity. Let’s talk about key performance indicators (or KPIs) to measure employee productivity along with strategies for improving productivity.

Employee KPIs for employers

To evaluate employee productivity, organizations rely on various KPIs that provide insights into individual and team performance. Some common KPIs include:

Key Result Areas (KRAs)

KRAs outline the primary responsibilities and goals for each employee. Measuring progress and achievements in these areas helps assess an employee’s productivity in their specialized area. Employers can provide job-specific feedback that can be more helpful for the employee than generic feedback.

Objectives and Key Results (OKRs)

OKRs define specific, measurable goals aligned with the organization's overall objectives. Regular evaluation of progress against these goals helps gauge an employee’s participation in the growth of the company overall. Employees, in turn, are given a wider snapshot of how their work helps to support the rest of the company.

Performance Reviews

Regular performance evaluations allow employers to assess individual contributions, identify areas for improvement, and provide feedback to enhance productivity. Employees receive advice from performance reviews specifically tailored to their performance strengths as well as potential areas of improvement.

Improving Employee Productivity

Using these methods of measuring productivity, employers can then hone in on strategies that address the pain points highlighted by their preferred KPIs. Here are some effective methods of nurturing employee productivity:

Clear Communication and Goal Setting

Establishing transparent communication channels and clearly defining individual and team goals fosters alignment, clarity, and motivation. If your team has a well-defined understanding of their expectations, as well as the ability to reach out if they have any follow-up questions, they’re much more likely to succeed.

Training and Development

Providing opportunities for skill enhancement and professional growth empowers employees to perform at a higher level and stay updated with industry best practices. Your organization could offer training programs that allows employees to improve their overall capability at the work that they’re doing. You could even encourage employees to learn more about other jobs in your organization that may be of interest to them.

Employee Benefits

Offering robust employee benefits plays a significant role in improving productivity and fostering a positive work environment. Competitive benefit packages that address employees' well-being, health, and financial security act as powerful incentives. Benefits such as comprehensive health insurance not only attract top talent but also cultivate a sense of loyalty, motivation, and job satisfaction among existing employees.

Enhancing employee productivity is a continuous journey that requires effective measurement, strategic initiatives, and the provision of comprehensive employee benefits. By implementing KPIs to evaluate productivity, adopting strategies to optimize performance, and offering robust benefits packages, employers can create an environment that motivates employees, increases productivity, and fosters loyalty. KBI Benefits empowers organizations to design and implement employee benefits plans that align with their goals and enhance the overall well-being of their workforce.

Speak with a KBI Benefits agent today to discover how employee benefits can enhance your employee productivity.

SPEAK WITH A KBI EXPERT

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What to Expect From Your Employee Benefits Broker

by Chris Freitas • 6 March 2025

When it comes to running a successful business, employee productivity and cost efficiency go hand in hand. After all, a happy, engaged workforce means better performance, while smart financial planning keeps everything running smoothly. But how do you improve employee benefits while keeping costs under control? That’s where KBI Benefits comes in. Let’s break down what to expect from your employee benefits broker to make the most out of your benefits budget. Enhancing Employee Productivity Through Better Benefits Happy employees are productive employees. When people feel valued and supported, they naturally perform better. KBI Benefits helps businesses improve employee well-being in several key ways: 1. Comprehensive Employee Wellness Programs A well-rounded benefits package goes beyond just healthcare. It should support every aspect of an employee’s well-being: Physical Wellness – Quality healthcare plans give employees access to preventive care, reducing sick days and boosting long-term health. When employees aren’t stressed about medical bills, they can focus on work. Mental & Emotional Wellness – Stress and burnout are major productivity killers. Offering mental health resources—like counseling services or employee assistance programs—creates a healthier, more engaged workforce. Financial Wellness – Money worries can be a huge distraction. Benefits like Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and retirement plans help employees feel financially secure. When they aren’t worried about making ends meet, they perform better. Social Wellness – Encouraging workplace connections, team-building activities, and even flexible work arrangements helps employees feel part of a community, leading to better collaboration and morale. 2. Professional Growth & Development No one likes feeling stuck in a dead-end job. That’s why providing learning and development opportunities is a game-changer. Offering training programs, mentorship, and career growth resources helps employees feel motivated, engaged, and more committed to their roles. And when employees are growing, the company grows too. 3. Recognizing & Rewarding Employees Appreciation goes a long way. Studies show that employees who feel valued are more productive. KBI Benefits helps businesses design recognition programs that ensure employees get the praise they deserve—whether it’s through bonuses, extra time off, or public acknowledgment. 4. Giving Employees the Right Tools Outdated technology and inefficient processes can slow employees down. By ensuring employees have access to modern tools and software , businesses can eliminate frustration and boost efficiency. Reducing Costs with Creative Financing Providing top-notch benefits doesn’t have to mean sky-high costs. KBI Benefits specializes in cost-saving strategies that allow companies to maximize employee support without overspending. 1. Smarter Health Plan Options Healthcare costs are one of the biggest expenses for businesses, but there are alternative options that help control spending while still offering quality benefits: Self-Funded Insurance Plans – Instead of paying fixed premiums to an insurance company, businesses can cover claims directly, which can significantly cut costs. Level-Funded Plans – A hybrid between traditional insurance and self-funded plans, this option gives businesses predictable expenses while potentially saving money. Captive & Consortium Health Plans – Small to mid-sized businesses can join together to manage healthcare costs , reducing risk and gaining greater negotiating power. 2. Reducing Administrative Costs with Digital Solutions Manually handling benefits enrollment and claims processing is time-consuming and costly. KBI Benefits leverages digital solutions to streamline these tasks, reducing administrative burdens and improving efficiency. 3. Benefits Benchmarking Are your benefits actually competitive? KBI Benefits offers a benchmarking tool to compare your current offerings against industry standards. This helps businesses make informed decisions about what to improve—whether it’s healthcare coverage, retirement plans, or paid time off (PTO). 4. Free Benefits Plan Audit Sometimes, businesses are paying for benefits they don’t need or missing out on better options. KBI Benefits provides a free benefits audit , helping companies pinpoint areas where they can save money without sacrificing employee satisfaction. The Bottom Line: Better Benefits, Smarter Spending KBI Benefits makes it possible for businesses to enhance employee well-being while reducing costs —a win-win for both employers and employees. By offering creative financing solutions, wellness programs, and benefits benchmarking , businesses can build a healthier, happier, and more productive workforce without straining their budget. Want to see how your company can optimize benefits while cutting costs? Schedule a free benefits audit with KBI Benefits today!