Final answer:
Factors that impact increasing employee productivity include optimizing work processes, compensation, work environment, and psychological factors such as employee recognition and respect. Treating employees with dignity and respect may have the most sustainable impact beyond financial incentives.
Step-by-step explanation:
The impact on increasing employee productivity can come from various factors within the workplace. Historically, scientific management focused on increasing workers' efficiency through optimized work processes and physical conditions. However, modern approaches consider additional dimensions including compensation, work environment, and psychological factors.
Raising wages can indeed provide an incentive but might not be sustainable if not aligned with productivity gains. Providing a comprehensive total rewards package can boost morale and productivity by covering health benefits and other needs that contribute to employees' well-being. That being said, the Hawthorne effect suggests that social relations and the fact that employees are being observed can have a significant impact on productivity as well.
Treating employees with dignity and respect is foundational and can foster a sense of value and engagement, far exceeding the temporary boost that monetary incentives may provide. Moreover, the ways an employee is recognized can help to build a positive work culture that promotes loyalty and productivity. Ultimately, it's not just about the financial incentives, but also about how employees feel about their workplace and their role in it.