Productivity Is Plummeting – Here’s Why And How To Address It

For the first time in decades, productivity saw a major drop during the first half of 2022. 

According to the Bureau of Labor Statistics, productivity experienced its biggest dip on record dating back to 1947. Now, there is an innate need to understand what is causing dwindling productivity after numerous life-altering crises seemingly had little effect in the last few years. 

However, there may not just be one factor driving this sudden shift. 

“It is strange,” Diego Comin, professor of economics at Dartmouth College, told the New York Times. “The data is very odd these past couple of quarters in so many different ways. It’s hard to even tell a coherent story.”  

Despite the optimism touted in recent years, there have been signs that not all is well. 

CEOs of tech giants such as Google and Meta have expressed concern over productivity levels across their workforce, urging low-performing workers to do better.  

This is referred to as “productivity paranoia,” a fear among leaders about their workers’ productivity levels. And the stress is seeping into management styles.  

Employers have taken a variety of routes to ensure that their employees are working hard. Some have opted for tracking software, while others have introduced new benefits that could incentivize workers.  

However, a digitized version of micromanaging could further hurt productivity goals. Instead, the pressure has led workers to do what leaders auction is considered “quiet quitting,” a mode of doing what is required of a job and not much more.    

The use of this term has been criticized as a fear-mongering tool, making employees feel as if they need to do more than what is in their job description for security. 

There is life outside of work that could be contributing to the dip in productivity as well. With societal awareness at an all-time high, workers are juggling fears over a recession, work instability, health crises, global affairs and political upheaval. All factors considered, burnout seems inevitable. 

On the other hand, offering employees benefits and tools that directly combat burnout, such as better paid-leave policies, flexible working, childcare services and access to healthcare, could have the opposite effect. Workers may feel more loyal to their employer, who is working to make their lives easier, thus improving overall productivity.