Corporate Culture & Productivity

Measuring Efficiency in the Workplace

Ali Stewart
February 5th, 2024

Workplace efficiency may sound like a general business buzzword, but it’s much more than that. While it can encompass a variety of different things depending on the type of business, industry, workforce, or work model, it is very much a measurable and applicable concept—one that is critical for businesses that want to grow, scale, and adapt to the new future of work. 

In this article, we’ll explore why measuring workplace efficiency is important, the various dimensions it encompasses, and the tools and methodologies you can use to evaluate and improve it.

Insights you can act on

See space utilization analytics in real-time and evolve your workplace strategy, improve employee experience, & right-size your real-estate investments with Workplace Intelligence powered by presence data.

Why is it Important to Measure Workplace Efficiency?

As hybrid models continue to change the way we work and the amount of time we spend in the office, it can be challenging to effectively measure productivity, time management, and space utilization. Team members may spend a different number of hours each week in the office, some employees embrace various configurations of hybrid and remote work, and new technologies continue to shift the way we communicate, collaborate, and interact daily. 

With so many complex changes happening all at once, relying on concrete data and analysis to make informed decisions about your business is more essential than ever. One of the most important ways to get a grasp on what’s working for your organization and what isn’t is measuring workplace efficiency.

What is an Efficient Workplace?

Efficiency, in its most basic form, can be expressed as a simple ratio: Output ÷ Input. 

Output is the total amount of work completed without accounting for waste. Input is everything that makes that work possible, including the employees, the workspace, the tools, technology, processes, and everything else.

The ability to maximize productivity while minimizing waste is a hallmark of a well-managed and adaptable business. From a financial standpoint, efficiency goes hand in hand with cost-effectiveness, as streamlined processes and workflows contribute to reduced operational expenses. However the impact of efficiency extends far beyond the balance sheet, influencing employee productivity and satisfaction, the quality of work you produce, and an organization’s capacity to innovate and adapt to the ever-evolving work environment.

As we navigate the complicated landscape of analytics and key performance indicators, it will become evident that the quest for efficiency is not merely a business strategy—it’s a necessity.

Workplace utilization

How to Measure Efficiency in the Workplace

Measuring workplace efficiency means assessing many aspects of your organization’s operations to ensure that resources are effectively utilized and processes are as streamlined as possible. Here are some of the key ways to measure workplace efficiency:

Define Key Performance Indicators (KPIs)

The first step in measuring workplace efficiency is determining what areas are integral to your business and where you want to improve performance. Identifying specific metrics that align with organizational goals will allow you to decide what you want to measure and how you want to measure it to facilitate improvement.

Collaborate with key stakeholders to define key performance indicators relevant to your industry and business objectives.

Use Time Tracking

Analyzing how team members spend their time can help identify workflow inefficiencies. Using time tracking software, you can observe and document the amount of time required to complete specific tasks, uncovering bottlenecks, unnecessary steps, and opportunities for improvement.

Utilize Workforce Analytics to Measure Productivity

Workforce analytics is one of the most important tools for measuring productivity. It can be used at different scales, allowing businesses to track trends at the individual, team, or organizational level. 

Workforce analytics tools can assess key metrics such as retention and turnover rates, employee productivity, time management, technology adoption, absenteeism, and workload balance. This data and the insights it provides allow you to better manage employees, decide which tools to invest in, and organize resources to improve efficiency.

Analyze Space Utilization and Presence Data

Tracking space utilization and presence data in the workplace is a key component of measuring efficiency, particularly for businesses using a hybrid work model. By tracking how office spaces are used, organizations gain valuable insights into occupancy rates and resource utilization. This information enables you to optimize office layouts and identify underused areas, leading to a better employee experience and reduced costs. 

Presence data helps you understand when and how employees are in the office at any given time, allowing you to tailor your facility to create a responsive and flexible work environment. This data-driven approach enables informed decisions on workspace design, resource allocation, and the overall workplace strategy, contributing to a more efficient, adaptable, and employee-centric work environment.

Employee Surveys and Feedback

Conducting regular surveys to collect feedback on workplace processes, communication, and collaboration allows you to gather useful insights into individual employee perceptions of workplace efficiency and their work-life balance. Employee input can reveal areas that need improvement and highlight successes.

Evaluate Project Management Processes

Assessing the effectiveness of project planning and execution can help you evaluate your processes and identify areas for improvement. Review project timelines, milestones, and outcomes and analyze the accuracy of initial project estimates compared to the number of hours and resources expended to find gaps.

Assess Workplace Design 

Examine the physical layout of your workspace. How do the furniture, equipment, and ergonomics of the office impact workflow? Ensure that the physical environment of your workplace supports employee well-being and productivity.

See which teams are using the office with: Workplace Intelligence

Benefits of Measuring Efficiency in the Workplace

When you measure employee productivity and workplace efficiency, you are giving yourself the tools to make real-time data-driven decisions about how to streamline your business. Here are some of the benefits.

Resource Optimization

Measuring workplace productivity helps identify areas where resources, including time, money, and manpower, can be utilized more effectively. This leads to better allocation of resources, preventing waste and improving overall productivity.

Cost Reduction

By identifying and addressing inefficiencies, organizations can reduce operational costs. This might involve streamlining processes, eliminating redundant tasks, and improving the utilization of resources.

Improved Productivity

Measuring efficiency can highlight bottlenecks or areas where employee productivity can be enhanced. Addressing these issues can lead to improved workflow, faster task completion, and increased overall productivity.

Enhanced Quality of Work

Efficiency improvements can result in better-quality work from team members as processes become more streamlined and errors are reduced.

Employee Engagement

Efficient workflows often lead to a more manageable workload for employees. When tasks are streamlined and optimized, team members may experience less stress and frustration, contributing to higher job satisfaction, a higher level of productivity, and better employee performance.

Goal Achievement

Productivity metrics help organizations track progress toward goals and objectives. By identifying areas that need improvement, organizations can adjust strategies and timeframes to complete tasks and achieve their targets more effectively.

Adaptability and Innovation

Regularly assessing a company’s productivity establishes a culture of continuous improvement. This can encourage employees to suggest innovative solutions and adapt to changes in the business environment, making the organization more resilient and competitive.

Data-Driven Decision-Making

Efficiency measurements provide valuable data that can be used to improve decision-making. Leaders can rely on concrete information to make strategic choices and prioritize areas for improvement.


Organizations can compare their efficiency metrics against industry standards or competitors. Benchmarking helps identify a baseline in areas where the organization is excelling and areas where improvement is needed to stay competitive.


By identifying inefficiencies and streamlining processes, companies can optimize resource utilization and prepare for scalable growth. When businesses can identify and solve potential challenges early on, they encourage a culture of continuous improvement and adaptability. 
These processes will also inform the adoption of scalable technology, process automation, and standardized workflows, all of which contribute to an organization’s ability to handle increased demand and expansion without incurring disproportionate costs. Ultimately, the pursuit of efficiency not only improves day-to-day operations but also lays the groundwork for sustainable scalability and long-term success.

iStock 1332176310

Embracing the Quest for Efficiency

Measuring efficiency in the workplace is one of the best ways to continually improve your organization. By examining a variety of metrics, from employee productivity and technology integration to management processes and office layouts, businesses can unlock valuable insights that can guide them toward optimal performance.

As small businesses and large organizations navigate the ever-evolving landscape of work, those who embrace change and continuously look for opportunities to streamline systems, processes, and teams will empower their employees and position themselves for success.

Contact OfficeSpace today for a demo of how our end-to-end smart office platform can unlock the potential of your workplace.