Team Building & Retreats tips
Published on
August 24, 2025

27 Employee Productivity Statistics You Must Know in 2025

Employee productivity continues to be a defining factor for business success in 2025, given the fact that organizations face new challenges shaped by remote work, hybrid models, and shifting employee expectations. The reality is sobering: only 21% of global employees are engaged at work, and this low engagement costs the global economy an astonishing $438 billion annually in lost productivity.

On top of that, new employees often take between 8 to 12 months to reach the productivity levels of their experienced coworkers, showcasing the importance of effective onboarding and long-term workforce development.

In this article, we’ve selected 28 essential employee productivity statistics that reveal important insights into workforce engagement, remote work challenges, managerial impact, and technology’s role in driving productivity growth. This is useful information for any business leader, HR professional, or team manager, as understanding these stats will help you unlock productivity potential and foster a more engaged, productive workforce in 2025

In This Article
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General Productivity & Engagement

1. Highly Engaged Employees Achieve 14% Higher Productivity in Production Records and Evaluations,   and 18% Higher Productivity in Sales.

(Research by Gallup)

Highly engaged employees show 14% higher productivity in production records and 18% more in sales, linking employee engagement directly to better workplace productivity. Engagement remains a top priority for remote, hybrid, and in-person settings.

Why This Matters: Engagement boosts labor productivity and reduces lost productivity across hours worked and work arrangements.

TeamOut Insight: Foster regular check-ins and recognition programs to keep employees emotionally connected and productive across all work settings.

2. Engaged Teams Can Generate Up to 21% Higher Profitability.

(Research by Gallup)

Teams with strong engagement achieve up to 21% higher profitability, showing how job satisfaction and engagement drive significant productivity growth and business impact.

Why This Matters: Engaged employees report better mental health and work-life balance, crucial to sustaining productivity long term.

TeamOut Insight: Encourage team-building activities that strengthen relationships, enhancing collaboration and output.

3. Employee Disengagement Can Cost a Medium-Sized S&P 500 Company Between $228M-$355M Per Year in Lost Productivity.

(Research by Forbes)

Disengagement causes massive lost productivity costs, with companies losing hundreds of millions annually despite hours worked.

Why This Matters: Mental health and job satisfaction have an impact on productivity; focusing only on work time misses key productivity drivers.

TeamOut Insight: Invest in mental health resources and create safe forums for employees to share concerns and re-engage with their work.

4. A 2023 Gallup Study Found that Top-Quartile Business Units Had 23% Higher Profit than Bottom-Quartile Units, Primarily Driven by Increased Engagement and Productivity.

(Research by Gallup)

Top engaged teams generate 23% more profit, highlighting how engagement and workplace productivity correlate with business success, which is especially relevant post-COVID-19 pandemic.

Why This Matters: Supporting employee well-being and flexible work arrangements reduces lost productivity and enhances output.

TeamOut Insight: Use data-driven feedback loops to identify engagement gaps and tailor interventions quickly for the highest impact.

5. Location Flexibility Contributes to an 8% Boost in Productivity for Organizations, and Schedule Flexibility a 39% Boost.

(Research by Forbes)

Offering flexibility in where and when employees work drives significant productivity increases, improving work-life balance and job satisfaction.

Why This Matters: Flexible hours and locations help employees avoid burnout and maintain focus, sustaining productivity growth.

TeamOut Insight: Promote flexible scheduling policies and empower employees to choose their optimal work times and places.

6. A Shocking 64% of Leaders in i4cp’s Study Said Return-to-Office Policies Were Their Main Strategy for Boosting Productivity, Even Though Greater Flexibility Drives Better Results.

(i4cp’s Study, quoted by Forbes)

Despite data showing flexibility boosts productivity, many leaders still prioritize return-to-office mandates that can reduce engagement and output.

Why This Matters: Misaligned leadership focus risks productivity and declining job satisfaction.

TeamOut Insight: Educate leaders on productivity statistics supporting flexibility and incorporate employee feedback in workplace policy decisions.

7. Only 21% of Global Employees Are Engaged at Work, and Low Engagement Costs the Global Economy $438 Billion Annually in Lost Productivity.

(Research by Gallup)

Global employee productivity statistics reveal that only 21% of workers feel engaged, contributing to a massive $438 billion annual loss in workplace productivity worldwide. Engagement strongly influences how remote workers and office employees perform, affecting labor productivity and overall output.

Why This Matters: Disengaged employees usually report lower job satisfaction and mental health, resulting in less productive work time and increased lost productivity across industries.

TeamOut Insight: Use frequent employee surveys to measure productivity and work-life balance, then tailor remote work policies to enhance engagement and reduce productivity losses.

8. Strong Onboarding Processes Improve New Hire Productivity by Over 70%

(Brandon Hall Group Research)

Effective onboarding doesn't just help employees stay. Organizations with structured onboarding see productivity improvements that significantly exceed industry averages, with new hires contributing to business objectives much faster.

Why This Matters: Faster time-to-productivity means a quicker return on hiring investments and reduced burden on existing team members who typically support new employees during transition periods.

TeamOut Insight: Combining traditional onboarding with immersive team experiences accelerates relationship building and cultural integration, key drivers of early productivity gains.

9. New Employees Take About 8 to 12 Months to Become as Efficient as Their Coworkers

(Academy to Innovate (AIHR) research)

Full productivity integration requires substantial time investment, with most employees needing nearly a year to reach the performance levels of established team members.

Why This Matters: Understanding the full timeline for productivity development helps organizations set realistic expectations and plan appropriate support throughout the integration period.

TeamOut Insight: Sustained team-building and relationship development throughout the first year accelerates the path to full productivity and team integration.

Manager and Leadership Influence

10. Manager Quality Explains 70% of the Variance in Team Engagement, Which Directly Affects Productivity.

(Research by Gallup)

Among key employee productivity statistics, manager quality stands out, explaining 70% of differences in team engagement and workplace productivity. How workers feel about their managers directly impacts productivity levels, work environments, and remote work success.

Why This Matters: Two-thirds of employees say manager support influences their work productivity and job satisfaction more than any other factor.

TeamOut Insight: Invest in managerial training focused on coaching and communication skills to boost team engagement and productivity in both office and remote settings.

11. Manager Engagement Dropped From 30% to 27% in 2024, Contributing to a Global Drop in Employee Engagement and Productivity.

(Gallup's State of the Workforce Report 2025)

Manager engagement slipping from 30% to 27% mirrors a global decline in employee productivity statistics. Disengaged managers tend to create workplaces where workers feel less motivated, which directly reduces output and raises lost productivity.

Why This Matters: Managers significantly influence how productive employees feel throughout their workday, regardless of remote or in-office status.

TeamOut Insight: Provide ongoing support and mental health resources to managers to rebuild engagement, thereby improving productivity and workplace morale.

12. If the World’s Workplace Were Fully Engaged, $9.6 Trillion in Productivity Could be Added to the Global Economy, the Equivalent of 9% in Global GDP.

(Gallup's State of the Workforce Report 2025)

This key productivity statistic highlights a staggering opportunity: fully engaged workers globally could boost productivity by $9.6 trillion, which is approximately 9% of global GDP. Engagement drives sustainable productivity growth across all work arrangements and industries.

Why This Matters: Enhanced employee productivity supports better decision making, reduces lost productivity, and improves work-life balance.

TeamOut Insight: Shift from measuring hours worked to focusing on productivity outcomes and engagement metrics, optimizing both remote and office work environments for growth.

13. Teaching Managers Effective Coaching Techniques Was Found to Boost Manager Performance from 20% to 28%, Indirectly Increasing Productivity.

(Gallup's State of the Workforce Report 2025)

Coaching training lifted manager performance by 8 percentage points, leading to improved employee engagement and workplace productivity. Effective manager coaching skills enhance workers’ job satisfaction and productivity levels in varied work settings.

Why This Matters: Since managers influence so much of labor productivity, enhancing their capabilities leads to meaningful productivity growth and lower lost productivity rates.

TeamOut Insight: Incorporate coaching programs into leadership development and encourage managers to hold regular one-on-one sessions to support employee productivity and well-being.

14. Gallup notes that while 100% Productivity is Unrealistic, rethinking the Manager’s Role is Key to Reversing Declines.

(Gallup's State of the Workforce Report 2025)

Gallup emphasizes that perfect productivity isn't feasible, but redefining managers' roles is the best chance to reverse declines in employee productivity statistics. Managers are crucial in fostering productive work environments for remote workers and office teams alike.

Why This Matters: How managers support employees largely determines productivity levels and work-life balance outcomes.

TeamOut Insight: Enable managers as coaches and facilitators to enhance engagement and maintain sustainable productivity across all work models.

15. 65% of HR Leaders Emphasize that Boosting Employee Productivity is Crucial to achieving the Best Possible Growth Outcomes for the Business.

(Research by Gartner)

A strong majority of HR leaders recognize employee productivity as the critical booster of long-term organizational growth and competitiveness. Investing in productivity improvements aligns with enhancing employee engagement and job satisfaction.

Why This Matters: Improving workplace productivity supports better decision making and reduces lost productivity, especially relevant in hybrid and remote work trends.

TeamOut Insight: Align HR and business strategies by supporting flexible work arrangements, leveraging productivity analytics, and fostering a healthy work-life balance to maximize productivity and growth.

The Impact of Job Satisfaction & Well-Being

16. Employees Who Report Being Happy Are Up to 13% More Productive, according to Oxford University.

(Research by Oxford University, quoted by Forbes)

Productivity statistics reveal that happy employees are up to 13% more productive. This link between job satisfaction and work productivity holds for both remote workers and office employees.

Why This Matters: Workers who enjoy their jobs tend to spend their hours more effectively and contribute higher output, which is crucial in remote or hybrid environments.

TeamOut Insight: Focus on initiatives that enhance job satisfaction, including flexible work options, meaningful recognition, and clear career paths, to boost employee productivity and engagement.

17. 33% of Global Employees Rate their Well-being as “Thriving,” Down From 35% in 2024 and 34% in 2023, Impacting Productivity.

(Gallup's State of the Workforce Report 2025)

Only 33% of global employees feel their well-being is “thriving,” a decline that can lower workplace productivity. Remember: well-being and wellness are two of the main corporate trends in 2025, which highlights the importance employees attribute to these initiatives.

Why This Matters: Reduced well-being can lead to lower engagement and higher lost productivity, affecting a company’s long-term success.

TeamOut Insight: Prioritize mental health and wellness programs, especially for remote employees, to improve well-being and thus support sustained productivity growth.

18. More than 8 in 10 Respondents (82%) said the Key Driver of their Productivity was Feeling Happy and engaged at Work.

(Research by Slack's The State of Work 2023, quoted by Forbes)

Happiness and engagement drive productivity for 82% of employees, showing the importance of a positive work environment.

Why This Matters: Employees who feel engaged with their work environment and job conditions are more productive, regardless of work arrangements.

TeamOut Insight: Foster a culture of engagement through frequent communication, meaningful work, and employee empowerment to maximize productivity outcomes.

19. 80% of Employees Report Productivity Anxiety, Leading to Lower Well-Being.

(Research by Workhuman, quoted by Forbes)

With 80% of employees facing productivity anxiety, stress is a major factor reducing well-being and work output. Therefore, it must be a priority for managers and HR leaders.

Why This Matters: Anxiety around productivity can cause burnout and decreased work output, representing a hidden loss in productivity stats.

TeamOut Insight: Implement stress management resources and encourage realistic productivity expectations to help workers manage anxiety and improve engagement.

20. A Workhuman survey of 1,000 Full-Time Employees Found that 61% of U.S. Workers Say They’re Productive at Work.

(Research by Workhuman, quoted by Forbes)

Despite productivity anxieties, 61% of U.S. workers believe they remain productive. This highlights a disparity between employee self-assessment and reported stress, common in modern work settings with blurred boundaries due to remote work.

Why This Matters: Understanding these perceptions can help companies better measure productivity and address hidden productivity blockers.

TeamOut Insight: Use technology tools to measure productivity effectively while balancing employee well-being to sustain long-term output.

21. “Productivity Anxiety” is Higher Among Gen Z, with 30% Battling it Daily and 58% Having it Numerous Times a Week.

(Research by Workhuman, quoted by Forbes)

This anxiety is tied to pressures around meeting deadlines, job demands, and social media-driven hustle culture, impacting work productivity and mental health across remote work and office settings.

Why This Matters: High productivity anxiety leads to lower well-being and can reduce overall work output, making it a crucial concern for companies aiming to sustain productivity and support remote workers’ mental health.

TeamOut Insight: Address productivity anxiety by setting clear expectations, offering regular recognition, and promoting a healthy work-life balance to help Gen Z employees manage stress and maintain productivity long term.

Remote, Hybrid, and Flexible Work

22. Productivity Increases by 6% While People Are Working From Home Due to Fewer Distractions.

(Research by Deloitte)

Remote work productivity stats demonstrate a 6% productivity increase for employees working from home, largely due to fewer office distractions and better time management. This signals how thoughtful remote work policies can boost output.

Why This Matters: Remote workers who manage their time effectively contribute significantly to workplace productivity and overall business success.

TeamOut Insight: Encourage remote employees to create distraction-minimized environments and set clear work schedules to maximize productivity.

23. Return-to-Office Mandates Show no Immediate Positive Impact on Productivity, but Can Reduce Intent to Stay by 10% and Increase “Quiet Quitting” by 19%.

(Research by Gartner)

Productivity stats reveal that forcing employees back to the office does not raise productivity immediately but can harm retention and engagement, raising the risk of quiet quitting, especially among remote or hybrid workers.

Why This Matters: Mandates that ignore employee preferences on work arrangements may lead to costly lost productivity and workforce turnover.

TeamOut Insight: Balance office presence with flexibility based on employee feedback to maintain engagement and reduce productivity loss.

24. A Productivity-Focused Team Boosts Hybrid and On-site Employee Productivity by up to 11%.

(Research by Gartner)

Teams emphasizing productivity measures see an 11% productivity lift across both hybrid and on-site employees, pointing to the importance of team dynamics and leadership in enhancing work productivity.

Why This Matters: Productive team environments improve employee engagement and optimize work output regardless of location.

TeamOut Insight: Build team rituals and shared goals that reinforce productivity culture, supporting both remote and office workers to be their most productive.

25. A Recent Gartner Survey Found that 21% of On-site Employees and Hybrid Employees Were Ranked Equally Likely to be Highly Productive.

(Research by Gartner)

This statistic highlights parity in productivity levels between on-site and hybrid employees, showing that location flexibility does not inherently reduce productivity when managed effectively.

Why This Matters: Companies measuring productivity should consider outcomes over location to foster both remote and office work success.

TeamOut Insight: Use outcome-based performance metrics and technology that supports collaboration across work environments to fairly assess productivity.

26. Only 8% of Employees are Fully Capturing Productivity Gains from GenAI Tools.

(Research by Gartner)

Despite the rise of GenAI and digital technologies, just 8% of employees fully leverage these tools to improve their productivity, indicating a critical opportunity gap in technology adoption.

Why This Matters: Underutilization of advanced productivity technology limits potential productivity growth, especially in remote work scenarios where digital tools are essential.

TeamOut Insight: Provide comprehensive training and encourage experimentation with AI-driven tools to unlock productivity gains, particularly for remote and hybrid workers.

27. Businesses Using Advanced Analytics are Typically 5x More Likely to Make Fast, Informed Workforce Decisions, according to Forbes.

(Research by Forbes)

Advanced analytics in workforce management make companies 5 times more likely to make swift, informed productivity-related decisions, enhancing overall work productivity and operational efficiency.

Why This Matters: Using data-driven insights improves decision-making and productivity metrics, essential for managing remote and hybrid employee performance.

TeamOut Insight: Invest in people analytics platforms to monitor productivity and engagement trends, enabling proactive management of workforce productivity.

28. Actively Disengaged Employees Cost Their Companies 34% of Their Salary in Lost Productivity.

(Research by Gallup)

Actively disengaged employees represent a significant productivity drag, costing companies about 34% of their salary in lost productivity, particularly problematic in hybrid and remote work models where disengagement may be less visible.

Why This Matters: Productivity loss from disengagement weighs heavily on company performance and employee morale.

TeamOut Insight: Identify disengagement early through regular feedback and target re-engagement efforts to reclaim lost productivity.

Wrapping Up

Understanding employee productivity is essential for the healthy evolution of workplaces. Recent data from Gartner shows that only 21% of on-site and hybrid employees are highly productive, indicating that productivity depends less on location and more on engagement, management quality, and work environment.

These 28 employee productivity statistics provide straightfoward insights into how factors like remote work, work-life balance, and leadership influence workforce output across diverse settings. Leveraging this knowledge can help organizations make data-driven decisions to optimize productivity this year and beyond.

At TeamOut, with experience managing over 1,000 corporate events and retreats and a 95% satisfaction rate, we specialize in designing tailored programs that boost collaboration and engagement. Investing in your team's productivity will improve company culture and drive measurable business results. Reach out to us today and let's discuss how we can help elevate your organization’s performance.

About the author
Thomas Mazimann
Update on
24/8/2025
Thomas Mazimann, a French entrepreneur and former international kayaking athlete, transitioned from sports to tech after moving to the U.S. He co-founded TeamOut, revolutionizing team gatherings.

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