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Working overtime or long hours does not necessarily equate to increased productivity, according to 2023 research from the business-to-business marketplace Expert Market.
Researchers came to their conclusions after examining the workforces of 40 countries worldwide. Specifically, they determined each country’s productivity level by dividing the annual gross domestic product (GDP) ― the value of all the goods and services produced within each country over a year ― by the average number of hours full-time and part-time employees worked over a year.
Overall, the United States ranked 13th worldwide in productivity. Based on 1,810.9 total hours worked in 2022, American employees produced an average of $42.18 per person per hour.
But that’s not even half of what employees in Luxembourg churn out. Employees in the small European country, which borders France, Germany and Belgium, topped this year’s list, with employees working 1,473.3 total hours and producing $96.52 per person per hour.
According to the study, all 12 countries that ranked ahead of the U.S. have employees who work fewer hours annually than U.S. employees. For example, Germany has the fewest annual working hours at 1,340.9 yet still produces $47.09 per person per hour.
On the flip side, some of the countries with the most hours worked produced the least amount of money per person, per hour.
Expert Market published a similar study in 2016. At that time, Michael Horrocks, former publishing manager at Expert Market, said the research proves that hours spent in the office do not necessarily equate to business success. Additionally, the U.S. culture of presenteeism and tendency toward “chaining” workers to their desks doesn’t benefit anyone, despite the allure of overtime pay for many workers. Working excessive hours can lead to devastating workplace stress and employee burnout.
“Hopefully, this means that the culture of presenteeism will be a thing of the past, and we will see a more flexible and balanced approach to work in the future,” Horrocks said in a statement. “Employees are clearly more beneficial to organizations when they are happier, so in this instance, what’s good for the individual is also what’s good for business.”
These were the top 10 countries in the 2023 study in terms of productivity:
Ranking | Country | Hours worked annually | Hourly productivity per person, per hour |
---|---|---|---|
1 | Luxembourg | 1,473.3 | $96.52 |
2 | Norway | 1,424.6 | $80.65 |
3 | Ireland | 1,657.5 | $76.56 |
4 | Singapore | 2,293.2 | $55.62 |
5 | Switzerland | 1,528.7 | $54.68 |
6 | Denmark | 1,371.6 | $53.95 |
7 | The Netherlands | 1,427 | $48.75 |
8 | Iceland | 1,449.2 | $47.66 |
9 | Germany | 1,340.9 | $47.09 |
10 | Austria | 1,443.7 | $47.05 |
The bottom 10 countries for productivity were Latvia, Portugal, Hungary, Poland, Romania, Slovak Republic, Croatia, Puerto Rico, Turkey and Bulgaria.
If overtime is necessary at times in your business, carefully study federal overtime rules to ensure you comply and ensure your employees receive the proper overtime protections.
You and your employees can improve your work-life balance if you commit to the following steps.
The best time and attendance software can help you and your employees create work patterns while proactively suggesting breaks and adjustments that improve productivity.
Creative work schedules can help you and your team avoid working overtime when you should step away from your tasks and get a breather. The following companies are known for their creative work schedules. Some of these businesses are household names, while others are smaller organizations. Take that as a sign: Any business can establish flexible work policies to improve their team’s work-life balance.
Often, remote workers are more productive than in-office employees. To maximize remote productivity, consider implementing video conferencing tools and communication platforms. Check out our GoTo Connect review to get started.
Many studies suggest that your job can impact your health, with longer hours in the office leading to lower productivity due to employee stress and burnout. Experts advise taking breaks and prioritizing time away from work to get recentered and stay at your best.
Strive to eliminate workplace stress by identifying key stressors, communicating with colleagues and your team, unplugging and doing more for yourself.
Sammi Caramela contributed to this article.