Study reveals organizations receive only 87% of expected output while paying 100% of salaries
AUSTIN, Texas, July 30, 2025 /PRNewswire/ — The ActivTrak Productivity Lab today released its first Workforce Utilization Benchmarks report, showing that nearly 60% of workers underperform against daily productivity goals — a shortfall that represents $11.2M1 in untapped capacity annually per 1,000 employees. The analysis finds organizations deliver only 87% of expected output while paying 100% of salaries, a gap totaling $2.86B in annual losses across the organizations studied.
The inaugural study analyzed May 2025 digital activity data across 5,619 organizations and 304,083 tracked workers and provides an objective measurement of actual digital behavior, not surveys or estimates.
Key Findings
- For every 1,000 employees, organizations lose $11.2M annually in productivity — equal to 130 workers
- 58% of staff fall short of productivity goals (avg 6 hrs 50 mins per day)
- Businesses receive only 87% of expected output while paying 100% of salary costs
- Organizations with 251+ employees average 7X in annual productivity loss compared to smaller organizations
- Organizations with greatest underutilization rates waste the equivalent of 1 in 5 worker salaries in untapped capacity
Findings by Organization Size
- Small (0-250 employees):
- Financial impact: Combined $1.4B productivity loss across tracked organizations
- Underperformance rate: 59% of workers
- Annual cost (avg): $162K – $542K per organization
- Mid-Size (251-1,000 employees):
- Financial impact: Combined $731M productivity loss across tracked organizations
- Underperformance rate: 53% of workers
- Annual cost (avg): $1.3M – $1.7M per organization
- Large (1,001+ employees)
- Financial impact: Combined $695M productivity loss across tracked organizations
- Underperformance rate: 51% of workers
- Annual cost (avg): $3.7M – $3.9M per organization
Findings by Industry Sector2
- Aerospace: Greatest untapped capacity (19%) and largest cost impact ($1M annually)
- Government & Public: Most workers below productivity goal (56 workers)
- Computer Hardware: Largest underutilization rate (71%)
- Logistics: Fewest below productivity goal (41%) and lowest untapped capacity (9%)
- Insurance: 2nd fewest below productivity goal (51%) and 2nd lowest untapped capacity (10%)
- Legal Services: 3rd fewest below productivity goal (53%) and 3rd lowest untapped capacity (11%)
“Productivity deficits are a serious and often underestimated drag on growth, stifling innovation and impeding progress,” said Gabriela Mauch, chief customer officer and head of Productivity Lab at ActivTrak. “As companies navigate slowing growth, margin compression and cost escalation, measuring and optimizing workforce productivity is one of the most effective ways to protect performance and sustain a competitive edge.”
Read the full report to see how your organization compares and discover how ActivTrak enables smarter workforce planning and productivity decisions:
- Report: Workforce Utilization Benchmarks, 2H 2025
- Blog: Productivity Gaps, Quantified: A Leadership Imperative
- Report: 2025 State of the Workplace
About the ActivTrak Productivity Lab
The Productivity Lab is a center for research and expertise on the future of work. Through reports, benchmarks, assessments and best practices, the Lab provides an in-depth understanding of workforce activity data across people, processes and technologies. This work is delivered through consulting and advisory services that help leaders across industries identify trends, improve performance and validate workforce investments – ensuring workforce productivity is sustainable and optimized for success. Productivity Lab findings have informed the work of leading industry analysts, media and research organizations. To learn more visit: https://www.activtrak.com/productivity-lab.
About ActivTrak
ActivTrak helps enterprises drive operational efficiency through AI-powered workforce intelligence. Its award-winning platform transforms work activity data into actionable insights for workforce management, workforce productivity and workforce planning — enabling measurable ROI and stronger business outcomes. More than 9,500 organizations trust ActivTrak’s technology, recognized by Deloitte’s Technology Fast 500, Inc. 5000, TrustRadius, and G2. Backed by Sapphire Ventures and Elsewhere Partners, ActivTrak leads the way in privacy-first workforce data that fuels the future of intelligent work. Learn more at www.activtrak.com.
1 Based on annual mean wage per employee of $85,864 for included industries (U.S. Bureau of Labor)
2 All figures based on industry averages
SOURCE ActivTrak