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How productivity can influence your business’s success

21/06/2022

Yesterday, Monday June 20, was the World Productivity Day and for this reason, today we present an article talking about the importance of improving productivity in a business, and how working to increase productivity can become a determining factor in achieving success in every organization

Measuring productivity in the work environment allows us to identify the areas of improvement in a business, as well as the type of measures that should be applied.

According to the Adecco Outsourcing Barometer on productivity and efficiency, carried out on a sample of 2.024 directors, managers and middle managers aged between 18 and 65, 58% of Spanish companies apply and monitor policies focused on improving productivity. This figure places Spain at 58.78 points on a scale from 0 to 100, which means that 6 out of 10 companies in our country have policies focused on increasing productivity.

A total of 9.88% of Spanish companies have a very low sensitivity to productivity, 8.50% low, 11.66% moderate, 14.72% moderate, 15.02% notable, 16.85% high, and 7.02% very high. This means that Spanish companies have outstanding productivity, but the vast majority of them have a wide scope for improvement to achieve greater efficiency. In addition, the trend tends to show that the larger the organization, the higher the percentage, and therefore the greater sensitivity to productivity.

The importance of labor productivity

When we refer to business productivity, we are referring to the indicator that allows us to measure the productive efficiency of a company. For example, how many products or services have been produced for each of the resources used in their production during a specific period of time. The goal is to achieve the highest possible output, using the least possible resources.

The most influential factors in terms of employee productivity are the work atmosphere, salary, equipment, motivation and working conditions, and some of the most general benefits obtained by working on productivity are cost and time savings, better organization and agility, and economic growth.

Moreover, productivity is closely related to economic growth and development, so companies should consider this concept as a key element in their own progress.

To measure a company's labor productivity, we must apply the following formula:

Productivity = Products or services produced/Resources used

Example. Productivity = total output achieved by workers/hours worked

What are the main causes of lack of productivity in the professional workplace?

An obsolete organizational system can generate several problems in the workplace, such as poor working conditions, long working hours, outdated technology and machinery, insufficient training of workers, little time for rest, absence of communication and job inflexibility.

The direct consequence is an increase in the turnover rate, as workers are dissatisfied with their working conditions. This, in turn, represents a higher cost for the company, both in terms of human and economic resources.

Therefore, it is important for companies to invest in updating their organizational systems to combat these problems and increase productivity.

Getting and providing the right tools at work is an essential factor, and not having the necessary resources to work efficiently can be frustrating for employees and undoubtedly hold down productivity growth.

What are the 6 main benefits of considering productivity in the work environment?

Productivity does not only refer to the way the employees of an organization work, but also to the use and response time of the tools and machinery used, as well as, to the implementation of methodologies and project processes that are carried out.

The greater the efficiency we achieve with a given action, the greater the productivity achieved, and this will be directly reflected in the results of any project performed.

Some of the main benefits of considering labor productivity are:

Adopting a better working environment

To achieve a better work environment, some of the most commonly used measures are flexible working hours, salary incentives and telecommuting. By doing so, the employee feels that he/she has time to balance or maintain a good work-life-balance personal and professional life, and will feel more predisposed and motivated during working hours.

In addition, it also works very well to prepare surveys in order to know the employees' satisfaction in any area, whether it is about working conditions, teamwork, remuneration, possibilities of professional promotion, etc.

Continuous employee training

It is important to take this aspect into account, as it is the way in which you will be able to boost the potential of your employees in an effective and continuous way. Investing in employees, means investing in the future of a business, so sitting down to listen their proposals and objectives, can be a key point to notice an improvement and evolution in their professional career.

Develop a more fluid communication in the business

Simply known as "Feedback". Promoting two-way communication is essential for the employee to feel that they are really part of the business, and that their opinion, ideas and knowledge contribute value to the improvement of each project. This will enhance both the business and the staff, and will surely create new business opportunities that will further the growth of the organization.

As a CEO or Department Director, meeting with employees regularly, is a way to see how the employees feel in their positions, challenges that they are facing and/or solutions that they might propose, etc.

Developing more effective and efficient strategies

One of the most effective ways to improve productivity at work, is to identify the tasks and workflows that an employee performs in order to assign consistent responsibilities. This helps to ensure that each employee performs those tasks that best suit his/her skills so that he/she can contribute to the overall operation of the company.

Another way to improve productivity is to create work modules with different tasks to encourage the multidisciplinary development of workers. This allows workers to have the opportunity of learning new development strategies and broadening their knowledge.

Identify the organization's strengths and reduce its weaknesses

Performance evaluation is a process that is generally carried out at the end of each calendar year and its main objective is to measure the performance of the company's employees. Through this process, it is possible to identify the company's strengths and weaknesses, as well as to correct shortcomings by adopting appropriate compensation measures. In some cases, it also allows workers to be relocated to where they are more productive.

In short, performance appraisals are a useful tool for improving the company's performance and efficiency.

Optimizing the resources used

Digital transformation is impacting positively on labor productivity. Task automation is one of the main advantages of technology in the workplace, since, thanks to it, more efficient resources have been achieved and productivity has been greatly improved.

For example, in eCommerce, many of the tasks that used to be done manually, such as sending mass mailings, are now automated and carried out by robots or computer programs, with the aim of allowing workers to spend more time on other more profitable tasks that require greater involvement. Undoubtedly, task automation is an indispensable resource for any company that wants to stay in a competitive position within the market.

In an eCommerce platform, optimizing resources basically means optimizing the entire buying and selling process, both on the user and employee side; having advanced technology, necessary integrations, ideal functionalities, seamless updates, continuous innovation, price management, promotions, allowing massive changes, modifications in product information, new products, essential metrics at a glance thanks to Real-Time Business Dashboard, etc.

productivity

How to measure labor productivity?  

As we have seen, productivity is an important concept in the workplace, and the more productive we are, the better results we obtain. However, calculating productivity can be a difficult task, especially if we do not have the right tools. Fortunately, nowadays, there are solutions such as time and task management software that allow us to control part of the productivity.

Labor productivity is a measure used to determine the amount of goods or services a worker produces in a given period of time. This can be measured by several ways, such as, the amount of income earned, the number of final products generated, or even the time spent performing a task. However, to calculate it, the first thing that must be decided is the measurement units required. Depending on this, you can choose the calculation method that best suits your needs. For example, if we want to know productivity in monetary terms, it is best to base it on income earned.

Time is also an important factor. Productivity can be calculated according to a week, a month, a quarter, a year, or any other, but the shorter the time interval, the less data will be analyzed and the less precisely will the results be.

In summary …

The employees' attitude towards work can determine the success of a business and generate multiple competitive advantages, so it is essential to create a work environment in which all employees feel comfortable and satisfied.

As we have seen, employee motivation and satisfaction are key factors in increasing labor productivity. A motivated worker is a person who enjoys what he/she does, contributes valuable ideas, proposes new projects and assumes a more proactive and responsible role.

If we project productivity in eCommerce, we know that daily tasks can become very complex. Therefore, it is very important to have an eCommerce platform that adapts correctly to your daily operations and helps you to save time managing your online store, while also allowing you to connect multiple channels and easily modify the content regardless of the device.

In this case one of the most common ways to achieve employee satisfaction and motivation, is to provide them with the right tools; intuitive and easy-to-use BackOffice with short learning curve and features like Drag&Drop, high performance solution, highly personalizable platform, background updates, high efficiency, etc.

Choosing the right eCommerce solution will allow you to improve the professional quality of your employees, while enhancing the user's shopping experience, thus, boosting the productivity levels of your business.

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