Workforce Drain: Why Leaders Must Rethink Productivity Measurement
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Workforce Drain: Why Leaders Must Rethink Productivity Measurement
"Heidi Farris is the CEO of , focused on helping organizations use data to understand and optimize the way teams work. Definitions of productivity vary widely across roles and organizations, a reality amplified by hybrid work, decentralized teams and the rapid adoption of AI. Some executives focus on outputs, others on hours worked, but broad metrics like these rarely capture the true drivers of performance such as focus, engagement and time spent on high-value tasks."
"The benchmark study analyzed anonymized digital activity from more than 304,000 employees across 5,600+ organizations in 23 industries. On average, companies achieve only 87% of expected productivity while paying 100% of salary costs. Nearly 60% of employees fall short of daily productivity goals, costing companies $11.2 million (based on U.S. Bureau of Labor Statistics May 2024 data released April 2, 2025) annually per 1,000 employees-the equivalent of losing 130 full-time workers every year."
Definitions of productivity vary across roles and organizations, amplified by hybrid work, decentralized teams and rapid AI adoption. Broad metrics like outputs or hours worked often fail to capture drivers such as focus, engagement and time on high-value tasks. Traditional measures like revenue per employee and voluntary turnover act as lagging indicators that mask inefficiencies. An analysis of anonymized digital activity from over 304,000 employees across 5,600+ organizations found companies average 87% of expected productivity while paying 100% of salaries. Nearly 60% of employees miss daily productivity goals, costing about $11.2 million per 1,000 employees annually.
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