Low productivity is widespread and can silently sabotage a manufacturing business, from global enterprises to small firms. From burnout to dissatisfaction, studies have revealed several root causes. The good news is that you can quickly get things back on track by recognizing the warning signs.

Here are nine tell-tale signs that poor productivity is hindering your team’s progress and driving adverse outcomes. Even when things seem to be running smoothly, regularly reviewing your team's performance helps identify areas for improvement and address potential problems before they escalate.

manufacturing team
manufacturing team

1. missing service-level agreements or quotas

Some signs are more obvious than others. If your production lines can't keep up with contracted demand, you have an issue — and perhaps it's a productivity problem. The overall impact can ripple throughout your operation, affecting client relationships and your bottom line.

Take some time to talk to subject-matter experts, view processes on the frontline and understand how the service-level agreements (SLAs) or other goals were established. First, determine: Did overpromising occur or is your team not meeting its potential?

Either way, you have work to do. But the answer informs how you approach it. Here are some practical steps to address the situation:

  • Review historical performance data to identify patterns or seasonal fluctuations that might affect output
  • Set up regular check-ins with team leaders to spot potential issues before they affect SLAs
  • Create a straightforward escalation process for when production starts falling behind
  • Assess your resource allocation to ensure you have the right people in the right roles

Remember that missed targets often signal deeper operational issues. A methodical approach to understanding and solving these challenges helps ensure lasting improvements rather than quick fixes.

2. employees not meeting individual goals

Team, department and company-wide goals aren't the only indicators of productivity. Individual team member goals can help you deep dive into productivity. Some examples of helpful information that can come out of this exercise include:

  • Are a few people not reaching goals? This can point to a need for one-on-one coaching or disciplinary action in cases where someone is simply not doing the work or following instructions.
  • Is an entire team missing their goals? Looking into possible causes, like supervisory issues, training or communication gaps, process or resource problems, or the impact of underperforming team members.
  • Are goals an issue at certain times? This could signal overworked teams, inadequate resources or inefficient scheduling.

Once you understand why goals are being missed, it's time to act. Implement targeted solutions, such as coaching, workforce management adjustments or process improvements, to empower your team to meet their objectives.

3. no clear performance expectations

Not all signs of productivity issues are related to actual performance metrics. In fact, one of the indications that something could be amiss on your floors or in your supply chain is that you aren't clear on what those metrics should look like.

Without clear objectives and purpose, workers and teams are likely to fall short of expectations. Set business-driven goals and connect them to individual targets and quotas to ensure everyone pulls in the same direction. Then, clearly communicate expectations and ensure everyone understands how their work contributes to overall success.

4. you end up over budget

Costs — especially those related to labour — that exceed expectations can be a sign that productivity isn't ideal. Often, the answer to a productivity push, especially in a manufacturing environment, is to throw more people and hours at the problem. So, you might chalk that extra expense up to overtime hours or temp workers.

However, according to a Stanford study, workers putting in 50 or more hours a week are likely less productive, especially in those last 10 hours. If costs are increasing without corresponding productivity gains, it's time for a closer look. Consider whether you and your teams can work smarter, not harder.

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5. signs of workplace stress

Burnout and stress aren't just signs you're working people too hard. They could also be symptoms of worker frustration because processes aren’t working successfully. And inefficient processes mean you're likely losing productivity somewhere. Even skilled workers can struggle when systems and workflows create unnecessary friction.

Employee wellness, in general, is also essential for productivity. Talk to team members to find out if there are wellness issues that you might help address. Consider these practical steps:

  • Schedule regular one-on-one meetings where staff can speak openly about workplace challenges
  • Look for signs of overwhelm, such as increased mistakes or missed deadlines
  • Create quiet spaces where workers can take proper breaks away from the production floor
  • Review workload distribution to prevent some team members from carrying too much responsibility
  • Set clear boundaries around after-hours communications and overtime expectations

Remember that addressing wellness concerns isn't just about being considerate—it's about protecting your team's long-term productivity and retention. You're investing in sustainable performance when you support your workers' well-being.

6. poor quality or excess errors

Employee productivity issues lead to unbalanced workloads. Either the burden falls to another worker, shift or team, or the team has to work harder later to compensate for lower productivity earlier in the day, week or month. That creates opportunities for error and poor work that can show up down the line or in the final product.

To address these imbalances, map out your workflow and identify where the heaviest burdens typically fall. Cross-training team members across different roles and processes builds flexibility, letting you adjust staffing levels when specific areas need support. Setting up clear handover procedures between shifts helps prevent work from falling through the cracks and reduces the pressure on incoming teams to catch up. It's also worth examining your scheduling practices—spreading challenging tasks throughout the shift rather than clustering them can help maintain consistent output and reduce errors from fatigue.

7. team members aren't positively engaged

High-performing employees care more about the process, company and end product than unproductive ones. Signs of low employee engagement, such as apathy or disinterest, can significantly hinder productivity and overall team performance.

Certainly, not everyone's a go-getter. But if you don't have any standouts on your team, you may want to look more closely at productivity. One possible way to spark renewed interest is by creating clear paths for advancement and skill development. Increasing productivity often starts with helping workers see how their daily tasks connect to larger company goals and their own career growth.

Consider setting up a peer recognition program where team members can highlight each other's achievements. Regular team meetings that celebrate successes, no matter how small, can boost morale and encourage higher performance. You might also introduce friendly competition through team challenges or performance targets with meaningful rewards. Just remember to keep these initiatives positive and inclusive—the goal is to lift everyone's performance, not create division or stress.

8. absenteeism is high

If people are missing a lot of work, and that’s why production numbers are down, you could be dealing with a problem of absenteeism. People call in for a variety of reasons, including health issues, being uncomfortable with work culture, burnout and simply being bored with their jobs. Addressing overall worker well-being and taking time to talk with your employees about what they want and need from their jobs can help you begin to solve these issues.

9. bottlenecks keep occurring

Bottlenecks can kill productivity and are often an issue of process or machinery. However, some bottlenecks arise because of low productivity. Before you assume the problem is with workers, check machines and other inputs for potential workflow issues. But be aware that bottlenecks and low productivity often go hand-in-hand.

Here's what you can look for on your production floor or in your warehouse:

  • Track the flow of materials through your operation and time how long products spend at each station
  • Monitor equipment downtime patterns and maintenance schedules to spot recurring issues
  • Watch for inventory buildups at specific points in your process
  • Check that your standard operating procedures are up to date and reflect best practices
  • Look for unnecessary movement of people or materials that could be slowing things down

Remember that bottlenecks aren't always obvious. Sometimes, small inefficiencies add up to create significant slowdowns. Take time to observe your entire process during different shifts and ask operators for their insights—they often know exactly where the problems lie.

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