Why is productivity important?
Productivity means to become efficient, effective, and abundant. It means producing more goods having the same resources or same amount of goods using lesser resources. It means producing new wealth or more wealth without additional cost. Usually this applies in economy but productivity is also important in some aspects.
In business and economic, productivity is essential because it helps the business to produce better output in a cheaper production cost. This allows for higher profit and more possibility to succeed. Productivity helps the company to grow because of better output. Productivity adds more value to the production by means of increasing the quality of the services and products and also increasing the benefits of the employees.
Productivity has much importance to the employees because of a better workforce, wages, and benefits of the workers. When employees are well-compensated, they are also well-motivated to work. The more enthusiastic and loyal the workers are, the better production outcome, the more quality work.
Any business firm or even government agencies need to have productivity because this assure stakeholders, customers, clients, and the society of a strong economic standing. For the government, productivity helps in adding more funds to important aspects of the country such as education and social needs. When there is productivity growth in the government, there is a higher change that obligations to employees are met. For business firms, productivity is also essential because it adds to the competitive level of the firm. It also increases prestige of the company in the marketplace.
Productivity drives economic growth that’s why it affects the entire community. Once our economy is productive, we will enjoy better and wealthy lives. When there is productivity, there is the possibility of an improved standard of living. The better the workforce, the more profitable is the business, and the more prosperous a society can be.