Customer loyalty and sales are only half of what determines an organization's profitability. Without consistent productivity levels, businesses could be wasting much of their bottom line on operational costs.
By promoting business productivity, companies can ensure that all departments, employees, and operations optimize their work times to meet their targets.
Studies show that there is a direct correlation between increased productivity and profits. The Bureau of Labor Statistics found that a 2.8% increase in employee productivity in the corporate sector yielded a 3.1% increase in output and a 13.2% increase in annual revenue.
While there are several ways to increase productivity, businesses can start by focusing on-
A major part of productivity is the ability to capitalize on available time. Every department and employee is responsible for reaching a specific target or benchmark in order to meet deadlines. With proper time management skills, a company can enhance its overall performance and output.
By implementing tools such as employee management software, companies can monitor when workers-
- Complete tasks
- Communicate with peers
- Work overtime
- Make a sale
- Get a complaint
While these elements can be tracked manually, automated tools generate key performance indicators (KPIs) that quantify employees' productivity.
KPIs keep workers accountable for meeting goals and expected outputs. Data shows that people work more efficiently when they are aiming to meet a specific target. Goals should be outlined along a detailed timeline so employees can implement their own time management strategies.
Once a long-term goal is set, management can break it down into smaller increments that are easier to work with. For example, if a company wants to produce 30,000 units in a month, they can set a target of manufacturing 7,500 units a week, or 1,500 units a day. This way, employees can set a steady pace to meet short-term benchmarks with the long-term target in mind.
Every minute of operations should be spent working toward business goals. By eliminating inefficiencies, companies can ensure that they are using the time to its full potential.
Inefficiencies can be several things, such as distractions, lagging systems, and disruptions. Employees should focus on the things that they can control, such as what is on their phone.
By deleting social media, games, and other time-consuming mobile apps, workers can avoid wasting company time. Studies show that people can use up to 50 hours a month on social media alone. Workers should even consider silencing their phones to avoid noisy alerts from texts, calls, and outside emails.
Management should encourage employees to jot down their thoughts on a notebook whenever they get distracted. The theory behind this approach is to write down distracting thoughts and transfer the distraction from the mind to a piece of paper. This allows employees to concentrate on work and refer back to the ideas later.
There are countless repetitive tasks and processes that frequently occur when operating a business. When these jobs are completed manually, companies can experience lagging systems, excessive human errors, and increased labor costs.
By automating applicable processes, employees can dedicate their time and skills to jobs that require more hands-on attention. Automation significantly decreases human error, boosts operational efficiency, and saves labor expenses.
First, management should define each operation they would like to automate and speak with software providers to determine which solution best fits their needs.
With different departments and projects intermingling, businesses must implement collaboration tools to boost teamwork, communication, and output. Collaboration tools streamline data exchange, communication, and collaborative efforts, creating a more efficient system to complete tasks.
Collaboration solutions can be as simple as Google Docs, which allows multiple users to edit a document simultaneously or more complex systems, such as management software.
By implementing the appropriate tools, project teams can monitor each member's progress, keep everyone on the same page, and efficiently divvy out tasks. This saves time, resources, and ensures no two members are duplicating jobs.
Business productivity relies heavily on an efficient workflow. When management receives an extensive list of tasks to complete, it can be overwhelming. With a standardized workflow, companies can adequately arrange and execute each job based on importance.
Many organizations establish a smooth workflow by prioritizing operations. Therefore, managers should assess their agenda and arrange tasks by time-sensitivity, importance, and dependency. This makes it easier to determine which jobs need to be completed immediately and which can wait.
By ranking operations, businesses can organize their workload using a manageable perspective.
In order to improve productivity, owners need to establish and maintain a healthy work environment in which employees feel they can meet deadlines. Stressful work cultures can overwhelm employees to the point that their anxiety becomes a distraction and their work suffers.
From designated workspaces to the building temperature, businesses must determine what makes their employees feel the most comfortable and productive. Offices should be neat, organized, and work-orientated to avoid distractions and ensure all employees have access to essential supplies.