Productivity might be the silent killer of business margins—and a new report puts a number on just how much it’s costing.
ActivTrak’s Productivity Lab has released its first Workforce Utilization Benchmarks report, analyzing real-time digital activity across over 5,600 organizations and 304,000 employees in May 2025. The results? Sobering. Companies are paying 100% of salaries but receiving just 87% of expected output, translating into $11.2 million in lost productivity annually per 1,000 employees.
The study—based on behavioral data, not surveys—delivers one of the clearest pictures yet of how the modern workforce is underutilized, especially in larger enterprises.
Digital Drag: The Productivity Gap in Real Numbers
ActivTrak’s findings show that 58% of employees fall short of productivity benchmarks, working an average of 6 hours and 50 minutes per day—a gap that, scaled up, adds up to billions.
Here’s what that looks like:
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Per 1,000 employees: $11.2M in annual lost productivity
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Across studied organizations: $2.86B in annual losses
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Underperformance rate: 58% of workers fail to meet daily goals
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Wasted capacity: Some sectors operate with 1 in 5 salaries going to underutilized output
“Productivity deficits are a serious and often underestimated drag on growth,” said Gabriela Mauch, Chief Customer Officer at ActivTrak. “As companies face economic headwinds, visibility into workforce productivity becomes a non-negotiable.”
Size Matters: Bigger Companies, Bigger Losses
While underperformance is widespread, the cost impact scales sharply with organization size:
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Small businesses (0–250 employees):
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Avg. loss per org: $162K–$542K
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Total loss: $1.4B
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Underperformance rate: 59%
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Mid-sized orgs (251–1,000 employees):
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Avg. loss: $1.3M–$1.7M
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Total loss: $731M
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Underperformance rate: 53%
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Large enterprises (1,001+ employees):
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Avg. loss: $3.7M–$3.9M
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Total loss: $695M
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Underperformance rate: 51%
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Larger organizations are losing productivity at 7X the rate of smaller ones, largely due to scale, operational inefficiencies, and a lack of visibility into how work actually gets done.
Industry Breakdown: Who’s Losing the Most?
Some sectors are bleeding productivity more than others. The aerospace industry tops the list in untapped capacity (19%) and cost per organization (over $1M annually).
Other standouts:
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Government & Public Sector: Highest number of underperformers
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Computer Hardware: Worst underutilization rate (71%)
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Logistics: Most efficient—only 41% fall short of goals
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Insurance & Legal Services: Also high performers, with underutilization rates of 10% and 11%, respectively
This suggests that while the problem is widespread, it’s not insurmountable. Industries with rigid compliance and structured workflows, like insurance and legal, seem to fare better—possibly due to clearer productivity metrics and standardized processes.
The ActivTrak report lands at a time when organizations are navigating economic slowdowns, cost-cutting mandates, and shifting employee expectations. As leaders try to do more with less, understanding workforce utilization isn’t just helpful—it’s imperative.
The kicker: most organizations still lack the tools to measure productivity accurately. Traditional performance reviews and surveys don’t cut it in a world driven by hybrid work, digital overload, and shifting job roles. What’s needed is real behavioral data—and that’s exactly where ActivTrak’s platform comes in.
“Measuring and optimizing workforce productivity is one of the most effective ways to protect performance and sustain a competitive edge,” Mauch adds.
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