Productivity is %utilization and it is generally calculated monthly, quarterly or yearly. 
So when we set-up the productivity targets we set them up for the whole month or quarter or year, that is irrespective of the holidays taken by user in the month or the year.  The productivity target is set proactively keeping in mind the holidays present in the month or the year. 
In scenarios where user has to take add-hoc timeoff the productivity target can be edited for the user whenever required.  Productivity data needs to be refreshed to see the current data for the user's productivity. 
Follow the steps given here to refresh the productivity data:
  • Click on Projects in top menu.
  • Click on Productivity in the left menu.
  • Click on Monthly link to get to the Monthly or Quarterly or Yearly productivity screen.
  • Click the refresh icon located at the top of the screen near the Data last generated date.
  • The icon looks like a page with two green arrows pointing in opposite direction.

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