Bigger companies are more productive
The Office of National Statistics recently ran nation-wide analysis that showed productivity is considerably better in bigger companies. Organisations with more than 50 employees were shown to have significantly more output per worker than organisations of less than 50. The results relates to research carried out between 2008 and 2014.
However, organisations with less than 10 employees are bucking the trend by demonstrating the fastest productivity growth in recent years, with suggestions that the development is due to changes in working patterns leading to more agile productivity. The recent economic downturn is also a big contribution to increase productivity, with unproductive organisations ceasing to trade, creating a survival of the fittest scenario where only the leanest, most efficient businesses remained.
In addition, the ONS research also highlighted the UK productivity lag when compared to other industrialized countries in the G7.
For those businesses struggling to improve productivity in the workforce, here are some of our recommendations:
- Invest in employee development. Employees report feeling huge satisfaction when they know their employer is investment in the development of their skills and learning through training and mentoring schemes.
- Pay a fair wage. An employer can’t expect a motivated workforce if they are frequently scrimping on wages and paying below the living wage.
- Communicate clearly. Good and regular communication with employees, providing them with updates on company performance and goals, will help them feel part of the bigger picture and that their individual contribution is valuable to overall business success.
- Ethical management. Treat employees fairly and openly. Keep them informed on business issues. A high level of transparency will help employees cope with both good and bad news.
If the problem persists or turns toxic, we recommend getting in touch with Avensure at the earliest opportunity as the reasons could be more entrenched in the business operations and culture, and requiring specialist help.