What Common Factors Affect the Productivity of a Company?

2 min read
Feb 9, 2018


In difficult economic times, businesses need to adapt to generate more output from existing resources. In real terms this means being able to switch up productivity to improve growth and profits without an increase in cost. Employees play a key role in enhancing the productivity of the business – they are the engine and the fuel when it comes to making progress and driving the vehicle of the company forward. But what factors do you need to bear in mind when it comes to making productivity improvements?

Factors Affecting Employee Productivity

The quality of the boss. According to recent research, a bad relationship with an immediate supervisor is one of the key reasons employees become less productive. “Bad” bosses fail at recognition, encourage a blame culture, overwork people and don’t keep their promises. The right leadership is crucial – productive employees feel inspired and valued by those who manage them.

The right tools. Employees who have access to useful technology that has been carefully chosen as suitable for their roles - and the structure of the company - tend to be more productive. Overloading employees with endless tech that needs constant updating can have the opposite impact.

Cutbacks and downsizing. When a workforce is reduced those who remain tend to end up bearing more than their fair share of the workload. This can hit morale and send productivity through the floor.

Happiness and health. Happier employees tend to be more productive so employees who feel valued, supported and satisfied in their work will do more for the business. Highlighting employee health can also help to boost productivity, whether that’s via encouraging flexible working or providing healthier food at work.

SMART goals. Goal setting is another crucial factor when it comes to employee productivity and the SMART system has been proven to work time and time again. SMART goals are specific, measurable, action-oriented, realistic and time-bound. They can be used at any tier within the organisation to set objectives to help improve employee experience and boost productivity overall.

Sufficient resources. Do employees have the resources to do their jobs properly? If not then productivity is likely to take a serious dip. This isn’t just business equipment or tech but also any training that employees might require, as well as a working environment that is a pleasant place to be.

Teamwork makes the dream work. Employees who feel part of something are more likely to work harder to make it succeed. If your business doesn’t have a team-based culture then you’re missing out on a potentially vital boost to productivity.

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