The Hotkeys for templates plugin enhances productivity in Obsidian by allowing users to assign custom hotkeys to their templates. By listing all available template files, users can select and enable specific templates for quick access via keyboard shortcuts. It supports templates from the core Obsidian Templates plugin as well as the Templater plugin, offering flexibility for diverse workflows. This functionality simplifies the process of inserting pre-defined content, making note-taking more efficient and tailored to individual needs.