Productivity Vs Efficiency: How to Balance both at Workplace
I used to think productivity and efficiency were the same thing. They are not, not even close to each other.
If you can learn to incorporate these two, they complement each other and maximize the benefits.
I have seen many companies often focus more on one than the other. But in reality, productivity and efficiency are equally important for a business to grow and last.
What do you mean by productivity vs. efficiency?
Productivity is the total amount of work completed over a certain period. Efficiency means how well one can use the resources, like time or materials, to do that work without wasting resources.
Simply, productivity is the quantity of work, while efficiency is the quality of how one does that work.
In this article, I will discuss the differences between productivity and efficiency and how to maximize these benefits. Here’s what I have covered for you:
Productivity vs Efficiency
How to calculate them
How to maximize them
When to apply productivity and efficiency
What is Productivity?
Productivity means the number of tasks you do in a specified period. It measures the production of goods or performance.
You can measure your productivity by dividing total output by total input. The output can be a project, a sale, or other task.
Productivity doesn’t mean just being busy or ticking off your to-do list. It means getting things done faster while still getting the results we want.
You can get the most done when you concentrate on our tasks and use our time and resources well.
Formula of Productivity
There is a simple equation to calculate productivity:
Total Output / Total Input = Productivity
For example, a company needs 1,500 hours of labor to produce 15,000 units. So the calculation would be, 15000/1500=10 units per hour.
Here is another example. I am a writer and I have to submit at least 2 articles per week. If the word length per blog is 100, then I have to produce 2000 words per week.
I work 4 days for 4 hours every day, and this equals 16 hours per week. So my input is 16, and output is 2000:
2000 / 16 = 125
From the equation, I write 125 words per hour, and this is my productivity index.
Examples of Productivity
Here are some examples of productivity. This will help you understand the concept better.
Example #1:
A baker bakes 100 cupcakes in a day, but 40 of them are burnt. On the other hand, another baker bakes 80 cupcakes a day, all of which are perfectly baked.
So which baker is more prodcutive? Obviously, the first one.
Example #2:
A student studies for 5 hours attentively without any distractions. But the other student studies for 8 hours but cannot give his full attention.
So the first student is more productive than the second one.
What is Efficiency?
Efficiency focuses on effectively using the least resources to complete the task.
It means the peak output level while using the least input. By being efficient, you can achieve more or sometimes even better.
An efficient process targets less wastage and higher productivity. This is how efficiency and productivity go hand in hand.
When I started as a content writer three years ago, I focused on producing more content. But then, I realized that quantity doesn’t alone bring success.
It was equally important to keep the quality of each piece high. To do this, I had to be careful with how I used my time and energy.
It significantly improved my output, and I’ve been able to achieve my goal more effectively.
Efficiency formula
Here’s the equation for calculating efficiency:
(Total output/ Total Input) x 100 = Efficiency
So, if your company’s total output is 70 and total input is 82, you would divide 70 x 82 and then multiply the answer by 100. It means your employees are 85% efficient.
Example #1:
Suppose, two writers are assigned to produce a 10,000-word report. The first writer completes the report in three days but the report needs a lot of revisions and corrections.
While, the second writer takes five days to complete the report. But he gives a flawless report and doesn’t require frequent editing.
It may seem that the first writer is more productive. Because he submits the report faster. But the second writer is more efficient because he saves the time of revision and correction.
So, he can move on to other tasks earlier than the first writer.
Example #2:
Imagine you run a customer service center. This month, your team managed to handle 40% more calls in a month compared to the previous month.
But after reviewing, you saw that 20% of these calls are unresolved or customer dissatisfaction. This indicates their efficiency is not up to the mark even after the increased rate.
Productivity Vs. Efficiency: What Are The Differences?
Productivity is The Output; Efficiency is How You Get That Output
Productivity means the amount of output you produce, while efficiency means how well you use the resources to get that output.
To increase productivity, you need to focus on the quantity of work and how much of the work is done.
Similarly, to be efficient, you need to focus on the quality of the work within a short period. It focuses on minimal waste of resources with more output.
When you increase your productivity, you can produce more output. On the contrary, when you increase efficiency, you use less resources to get the same output.
Quality Vs. Quantity:
As previously discussed, productivity focuses on quantity, while efficiency focuses on quantity.
So, productivity is suitable when you need to produce a bulk output. But if you are looking for long-term success, you should focus on efficiency.
Raw Measurement VS Refined Measurement:
Productivity measures how much you have accomplished in a certain period. It shows you the output you can get.
From the efficiency vs productivity formula, you see efficiency measures what you get to fit your budget and resources. It saves your time, money, and other materials.
Resources:
From the productivity vs. efficiency formula, you see efficiency measures underlying costs, while productivity doesn’t.
So, startups and entrepreneurs must focus on productivity at the beginning, because they don’t have much budget. After a while, they can focus on efficiency for long-term sustainability.
Measurement:
Productivity measures how much you have accomplished in a certain period. It shows you the output you can get.
From the efficiency vs productivity formula, you see efficiency measures what you get to fit your budget and resources. It saves your time, money, and other materials.
In short, Productivity+Efficiency= True Productivity
Efficiency vs. Productivity in Different Sectors
If you know how to implement both productivity and efficiency in different sectors
Remote Team Management:
If you work remotely, you must need all the tools to work easily and smoothly. Besides this, you must need tools to communicate better with your team.
To be productive, you have to set small achievable goals. From my experience, planning your day early in the morning helps a lot in this case. Moreover, a healthy work life balance helps being productive too.
Project Management:
To manage a project efficiently, you have to make your streamline smooth and reduce project delays. To be productive, you have to prioritize task and deliver high quality projects.
Sales
Efficiency in sales means using tools like CRM software. These softwares makes repetitive tasks and sales processes smoother.
Productivity means spending time on important prospects and creating smart plans to manage deals effectively.
Software Development
In software development, increasing efficiency means automating process, and using project management tools. While productivity includes ensuring high error free coding and innovative features.
Customer Service
In a customer service, to increase efficiency you need to ensure a great CRM system, chatbots. These will help you to manage customer interactions easily and save your time.
On the other hand, productivity means training your employees to effectively manage complex inquiries. It will increase customer satisfaction and loyalty.
Marketing
Efficiency and productivity is the key to have a successful marketing campaign. It includes developing your marketing tools and using analytics to make an informed decision.
To increase productivity, focus on high ROI strategies and have a good relationship with your customers.
Productivity Vs. Efficiency: Which to Choose and Why?
When I talk about productivity, I mean focusing on how much one can get done. The key factor here is the quantity of output.
High productivity is achieving more in less time. This is good because-
It helps our company grow
Generates more revenue and sales.
But there are some downsides, too.
If you rely on productivity only, you might lack quality.
Your only concern becomes how fast you can reach our goals. What you need is to find a good balance.
Moreover, always trying to be more productive can make employees feel tired and unhappy. It's also important to keep a good work environment for long-term success.
Efficiency means using resources in the best way to produce a good output.
It is about getting the most out of the result without wasting resources.
It saves time and money, which is great for startups.
There are also some downsides to efficiency-
When you only focus on quality, quantity decreases, limiting our production.
Efficiency also requires an initial investment in training, which can be a hurdle for many new businesses.
You've probably been so confused at this point. What to choose between productivity and efficiency? The thing is, it depends on your goal and business.
If you need to produce more, choose productivity. For example, if your company gets a big order, what will be your primary focus?
Obviously, producing more. In this situation, your employees must be productive to meet the deadline.
But if long-term sustainability is your choice and you want to keep the costs lower, stick to efficiency. It will help you in the long run.
In most cases, the balance between productivity and efficiency gives the best result. High productivity without efficiency can waste time and resources.
Similarly, high efficiency without enough productivity can lead to lower production and growth.
How to Maximize Efficiency and Productivity in the Workplace?
I have always wondered how I can increase my efficiency and productivity in the workplace. You’ll find thousands of strategies on the internet that may feel overwhelming.
I started researching and have picked up several strategies that could also help you. Here are some tips that have worked wonders for me:
Block Your Time:
When I first heard about time blocking, I didn’t think it would work for me. But after giving it a try, I noticed a significant improvement in my productivity and efficiency.
It is a time management method in which you block out several periods of time to focus only on your work.
You can manage your time using tools like Apploye. It can help you create a schedule and block time for different tasks.
To do so:
Identify your priorities
Allocate time block
Be realistic
Stick to your schedule
Automating Tasks:
Automating tasks can significantly increase productivity and efficiency in the workplace. It streamlines processes, reduces errors, and lets employees focus on more important tasks.
Automation handles boring and repetitive work like data entry, reporting, etc. When you use automation to do this, you’ll get much better results in a short time.
It also reduces labor costs without wasting any resources and time, which increases efficiency, too!
Focus on Your Energy:
Focusing on energy management helps you bring your best self to each task. It can significantly increase your efficiency and productivity.
So, it will be a smarter move to give you all when your energy is at its peak.
Here’s how you can do that:
First, identify your peak energy hours. We feel the most focused and alert this time. For me, it was early in the morning, and I usually do the hardest tasks of the day at that time.
Once you know your high-energy period, it will be easier to schedule your most important tasks. You can accomplish more in less time with better results.
Then, use the low-energy period for less demanding tasks. It can be checking emails, answering phone calls, or scheduling tomorrow’s tasks.
Turn off the Distractions:
Turn off your phone and close all the tabs when you need to focus on high-priority tasks. Even the sound of your phone buzzing—even if you don't look at it—can distract your mind.
A survey by Economist Impact studies that, managers around the world have trouble staying focused. Every year, they lose 683 hours because of distractions. In the U.S. alone, distractions cost businesses $468 billion each year.
And guess what? It’s not just distractions that take away your time. According to a University of California Irvine study, it takes about 23 minutes and 15 seconds to refocus.
So, when you’re working on a project that needs your attention, turn off your smartphone. It might seem harmless to check a quick notification on social media. But these small interruptions add up.
Here’s how I manage distractions at the workplace:
Set boundaries. I let people know when I’m available and when I’m not. This is not easier, I know. But it’s a game changer.
There are so many apps and websites to help you manage distractions and focus. Use these to prevent access during your working period.
Have a routine and stick to it.
Do Not Multitask:
When you multitask, you are only dividing your attention between several projects. This reduces overall efficiency and productivity in the workplace.
When I try to do too much at once, I find myself making more mistakes and taking longer to complete one task.
But why?
Because our brain is not designed to focus on several complex tasks at one time. When you switch between projects, you only lose our focus, energy, and time.
Say aloud the task you want to complete; this will send signals to your brain. Create a goal that helps your brain zero in on the task.
Don’t try to be a Perfectionist:
Perfectionism is not a bad thing, don’t get me wrong. But when you focus too much on perfection in every small detail, it can actually hinder your productivity and efficiency.
When I aim to be perfect in every task, I tend to spend a lot of time on the details. This often delays submitting my tasks and meeting deadlines.
Take a Break:
Taking a break might seem like a waste of time, but it's not, trust me! Taking regular breaks after a long working session can actually improve your productivity.
So here’s my secret tips. How to be more productive at work? Take a break
Here’s how I take a break: I use the Pomodoro technique to give myself a 5-minute break after a 25-minute working session.
But don’t start scrolling at that 5-minute break! Because your 5-minute break may turn into a mini 30-minute long vacation. Been there, done that!
Efficiency vs Productivity: How to Find a Right Balance?
In work, efficiency vs productivity, which one should I choose? The answer is- finding the right balance between efficiency and productivity is a must to get the best output.
Productivity is not just about getting your work done. It's about-
how well and consistently you can produce an output over time.
While you are productive, you know how to manage your time and energy wisely.
But focusing only on productivity leads to burnout, and employees often hate the job. They become exhausted, and the only thing that matters in such a situation is when the work will be done.
Similarly, efficiency doesn’t necessarily mean working harder; it means
working smarter and getting the best output
doing the work in the most effective and easiest way possible.
However, while focusing on efficiency, you only think about immediate results. This affects long-term success and output.
Finding the right balance between efficiency and productivity is not easy. You need to understand when to work for efficiency and when to be more flexible and creative to be productive.
After all, our goal is to consistently produce great work while being able to handle changes and challenges.
When you strike this balance, you can work efficiently without losing your creativity or sacrificing long-term success. It leads you to success and satisfaction in what you accomplish.
Final Words
In summary, balancing both productivity and efficiency can greatly improve performance.
High productivity means getting tasks done and meeting deadlines. Efficiency ensures that work is done in the best way, saving time and money while keeping quality high.
When you learn to balance productivity and efficiency well, you can work better and produce greater output. Productivity and efficiency are not in competition. Instead, we should combine them to reach our goals effectively and sustainably.
You can get more done and reach your goals using technology like Apploye as a productivity improvement tool. It can help you balance productivity and efficiency, achieving the best results.
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