Productivity growth is vital because more real income means the business can meet its obligations to customers, suppliers, workers, shareholders, and governments (taxes and regulation), and still remain competitive or even improve its competitiveness in the marketplace.
It’s one of the main concerns of business management, and practically all businesses have established procedures for collecting, analysing and reporting productivity data. However, continually investigating manners to improve quality, reduce downtime, and increase inputs of labour, materials, energy, and purchased services could benefit your business.
Simple changes to operating methods or processes can increase productivity. The most significant gains come from adopting new technologies or concepts. Contact us for more information on our productivity programmes.
Productivity benefits are apparent and widely felt when implemented. Here are 7 reasons why productivity should be on your business agenda for 2021.
When it becomes less expensive to produce goods and services, businesses experience an increase in profitability. With more efficiency, less labour is required to produce these products and services. Of course, a business can choose to reduce employees to produce the same output, but ideally, for job retention purposes, it’s best to maintain the same amount of employees to benefit from an increase in output.
Lowered Operational Cost
Through several initiatives, businesses can reduce operational cost. If employees improve individual workflow, they could either produce more in less time or reduce the number of hours they spend to achieve the same output. Operational cost can also be reduced with implementing technology. Another initiative is introducing flexitime or three-day weeks which increases productivity because employees feel more valued and engaged and experience less stress.
Most businesses don’t use their resources to the best potential. Sometimes employees are very busy, and other times they’re looking for more work to do. Better human resource management offers the opportunity to reduce costs and increase productivity through better role distribution and more effective staffing. Improved workflow systems can identify overlapping roles, and the business can rectify situations where employees are not used to their full potential.
More productive employees are more engaged. Engagement can often be linked to leadership, the amount of autonomy an individual feels and the degree to which they feel in control of their work and workload. When employees are organised, it usually leads to focus, commitment and engagement.
Improved Customer Service
Giving customers the time and attention they need can be felt all over the business. Systems operate undisturbed, and customers acknowledge it. When the customers are satisfied the business benefits from it, which leads to satisfied managers and stakeholders.
Reduced Waste and Environmental Impact
The environment suffers when individuals aren’t efficient. Being organised and getting tasks done in less time means reduced electricity usage. Without focus, time, money and resources go to waste. With higher productivity levels among employees, it creates a more happy and healthier working environment.
Any task done faster, more efficiently and better than competitors gives a business an edge. Increased productivity leads to increased competitiveness. With reduced operational cost, the business can provide products and services at a lower price as competitors which increases the value add to the customers.