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Workplace Productivity: What Gallup's Research Shows

Gallup's research examines the workplace factors associated with higher employee and team productivity. Explore what the evidence reveals about the relationships between workforce productivity and employee engagement, manager effectiveness, hybrid work, AI, and employee wellbeing.

What Is Workplace Productivity?

Definition

Productivity is the ratio of output to input. Organizations often measure productivity as output per hour worked or per person. Revenue per person is a common example. Some measures also account for other inputs such as overhead and materials.

Productivity is one aspect of employee performance. Gallup recommends evaluating performance across three dimensions: individual achievement, team collaboration and customer value.

What Workplace Factors Are Associated With Higher Productivity?

Many factors influence employee productivity and job performance, including innate talent, motivation, engagement, health, wellbeing, tenure in a role or organization, and the physical work environment.

Separate Gallup analyses from 2015 through 2024 have found higher productivity among more engaged business units, identified managerial talent as a predictor of productivity and linked daily strengths use with higher productivity.

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How Do Managers Affect Workplace Productivity?

Managers influence workplace productivity by shaping the factors associated with employee engagement and performance. Gallup's research indicates that managers account for 70% of the variance in team engagement. Higher team engagement correlates with greater productivity, according to Gallup's 2024 Q12® meta-analysis. Important management practices include setting clear goals, organizing resources, supporting collaboration and coaching employees to perform at their best.

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What Is the Relationship Between Employee Engagement and Productivity?

Higher employee engagement is associated with greater workplace productivity. According to Gallup's 2024 Q12 meta-analysis, business and work units in the highest engagement quartile showed 14% higher productivity based on production records and evaluations and 18% higher productivity based on sales than those in the lowest quartile.

Organizations can strengthen employee engagement and support productivity by developing great managers, clarifying expectations, recognizing good work and helping employees use their strengths.

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Does Hybrid Work Hurt Productivity?

Hybrid work can support high employee productivity when teams are managed well. In a 2022 study of 8,090 remote-capable U.S. employees, hybrid workers reported higher productivity and more efficient use of time among the greatest advantages of their work arrangements.

However, hybrid work can also present productivity risks when teams struggle to coordinate their efforts, clarify expectations or maintain consistent work processes. Gallup recommends shared collaboration plans, clear performance expectations and regular manager communication to support productive hybrid work across locations.

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How Does AI Affect Workplace Productivity?

Many employees report that AI helps them work more productively. In May 2026, 65% of employees at organizations that had implemented AI said it had a positive effect on their productivity and efficiency.

Employees who use AI for more types of work are more likely to report productivity benefits. Among U.S. employees surveyed by Gallup in 2026, 45% of those using AI for one or two work purposes reported a positive effect. That compares with 90% of those using it for seven or more.

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How Is Employee Wellbeing Related to Workplace Productivity?

Employee wellbeing is a factor in workplace productivity. Workforce health has measurable implications for the quality of employees' work, their job performance and their ability to sustain productivity over time. Gallup's 2023 research also identifies wellbeing as a predictor of future employee performance and absenteeism, providing an early indication of potential workforce performance challenges.

Low employee wellbeing is also associated with employee burnout. Gallup estimates that burnout-related turnover and lost productivity cost organizations worldwide $322 billion annually.

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Build a More Productive Workplace

Gallup helps organizations improve workplace factors associated with higher productivity. Our research and consulting offer practical guidance to help employees, teams, and organizations do their best work.