Kubernetes allocates resources to workloads based on manifest specifications, but unused resources can lead to waste in the cloud industry. Measuring workload efficiency is crucial, using formulas such as (Used resources / Requested resources) * 100, and considering factors like resource fluctuation over time. Identifying target resource values and adjusting workload resources are key steps to improve efficiency, with tools like Vertical Pod Autoscaler helping with this process. Additionally, scaling for peak periods and dealing with spiky workloads require careful consideration of resource requests and usage patterns to minimize waste and optimize costs. Using cost monitoring tools can provide instant insights into workload efficiency, enabling data-driven decisions to boost performance and reduce costs.