The Relationship between Productivity and Profit
If I had a penny for every time I heard the old cliché “Money doesn’t grow on trees”, well, let’s just say I’d be squeezing another holiday in before the year is up. But routes to money can be created, and ever since I began my productivity journey, it’s been about finding a balance between working less, and still being able to earn enough money to have the lifestyle I wanted. Fewer hours at a laptop, should never be about less income, remember, work smarter, not harder.
So how can increased productivity lead to increased profits?
I just want to put this out there straight away, there are a lot of factors that affect your company’s bottom line. So, what I’m about to say is not a “one-size fits all”, however from the many businesses I’ve worked with, it’s one of the most important factors when looking for profitable solutions. Simply put, the more productive your employees are, the more money your company will make. That’s because productive employees are able to get more work done in less time. In addition to reducing the “wasted time” which often occurs in the modern workplace.
There are a few ways to measure productivity, but one of the most common is by looking at output per hour. If your employees are able to produce more in less time, then that’s a good indicator that they’re productive. However, as I say, it’s important to remember that productivity is not just about working harder or faster. It’s also about working smarter.
For example, if your employees are using outdated methods or tools, then they’re not going to be as productive as they could be. Investing in new technology or processes that help them work more efficiently, then you’ll see a boost in productivity (and profits). My last few days have been a perfect example of this. My laptop had a major temper tantrum, it basically refused to switch on, and even though all the lights and indicators showed it was still working. Anyway, into IT support it goes and it needed a new keyboard, 3 days later I’m back on it, but those 3 days were tough. A slower laptop really slowed me down, longer to process tasks, and even longer to boot up…an up-to-date laptop with a faster processor…better productivity. Simple, but important.
You could also look at your employee’s working habits and understand how and when they attain peak productivity. Are they morning people? Do they work best after a full lunch break? Productivity goes beyond quantity, we want quality. If your employees are productive and doing high-quality work, your company is going to fly.
So, let’s look at a few ways to ensure that your employees are productive. There are a few key things you can do:
1. Set clear goals and expectations. Your employees need to know what’s expected of them if they’re going to be productive. So, take the time to set clear goals and expectations for each employee.
2. Provide the right tools and resources. Make sure your employees have everything they need to do their jobs effectively. This includes access to the latest technology, as well as any training or development they might need.
3) Encourage collaboration and communication. Collaboration and communication are essential for productive teams. Encourage your employees to share ideas and work together towards common goals.
4) Reward productivity. When employees are productive, make sure to give them the recognition they deserve. This could be in the form of a bonus, but it could also just be a simple thank-you note or verbal acknowledgment.
Productivity is key to a successful business. The more productive your employees are, the more money your company will make. To ensure that your employees are productive, set clear goals and expectations, provide the right tools and resources, encourage collaboration and communication, and reward productivity when it happens. If you’re looking for someone to help with this, give me a shout, and between us, we can take your business to the next level.
