What are the disadvantages of improved productivity of a company's employees?

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In general, it is highly unlikely that a company would be harmed in any way if the productivity of its employees increased.  Companies are constantly trying to increase productivity because this is a way to increase profits.

Productivity can be defined as the value of the goods or services that can be produced using each input of labor.  In other words, it is the value of the things a worker can produce in, for example, one hour of work.  A company will typically want to increase productivity.  This is because the company can make more money if its workers create more value for each hour that they work.  This is good for a company and there really are not any disadvantages.

However, an increase in productivity could be bad for individual workers. This is because it could put those workers out of a job.  Let us imagine that a fast food restaurant currently needs 3 cooks in order to make 300 hamburgers in an hour.  Then imagine that productivity increases drastically and now 2 cooks can make 300 hamburgers in an hour. The third cook is going to be out of a job unless the company can get more people to buy their hamburgers.

In this way, an increase in productivity is good for a company, but it can be bad for individual workers.

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