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Productivity in the workplace is directly linked to the ways in which companies maximize their profits and revenue each year. An unproductive workplace can negatively impact how financially successful a business is. It can also put a strain on its longevity and workplace culture.
It’s estimated that a lack of productivity in the workplace can cost companies from 20-30% of their revenue each year. That’s almost a third of your revenue each year lost due to circumstances that could easily be changed!
In this article, we will take you through and explain exactly why is productivity important for a business. Read on further to get the low down.
1. Sort Out Your Time Management
One of the key factors when it comes to being productive in the workplace is that employers and employees know how to manage their time. Employees that sit around with nothing to do or are unable to complete tasks in an allotted time means that productivity takes a nosedive.
Utilizing effective time management tips is a great way for everybody to learn how to better manage their workday. And gives people an indication of what they need to achieve. It allows everyone to work together as a team and to delegate responsibilities better. This then reduces the overall stress levels for everyone on board.
2. Reduces Employee Burnout
Now more than ever in 2020, many employers are waking up to the negative effects of employee burnout. This can happen when employees are overworked, stressed, and have not enough time to achieve their tasks.
Reports have stated that as many as two-thirds of employees have experienced burnout at some point in their careers. This can lead to inefficiency at work and even employees having to take time off due to stress and anxiety.
Having an employee off work due to stress will reduce productivity even further. It means a business will need to arrange a temporary replacement or spread their workload among existing staff members.
A productive and effective workplace means that employees have a more manageable workload. They are also able to navigate their job responsibilities without experiencing the negative effects of burnout.
3. Helps With Morale
In the workplace, morale is one of the key components that helps supports productivity. If a workplace and its employees all have high morale and a sense of teamwork, their productivity will be higher.
However when teamwork and morale are compromised this is when productivity can really suffer and vice versa. Low morale can often turn a workplace into a toxic environment. Employees can sometimes feel that they no longer want to work there and will look for other roles at different companies.
This in turn is a costly and time-consuming process to replace employees who leave for other jobs.
Morale and productivity is a cyclical relationship; one cannot exist without the other. It’s essential to keep productivity high so that the morale of a workplace is not ruined.
4. Improves Relationship With Customers
If your business is a customer faced business, the relationships that your employees have with your customers is crucial. Especially if you consider your profit and revenue streams.
The better an interaction or relationship between your employees and a customer is, the more likely that customer will refer your business or services to friends and family.
By doing so this will then increase the traffic and visibility of your business, leading to greater revenue and profit. When an employee is productive and working at a productive company they will be able to speak more positively about the business and its services.
A productive employee is an asset to your business and company. They can provide an excellent experience for the customer which can lead to repeat or further business.
5. Increased Competitiveness
Productivity has a direct effect on how you operate a business and how you respond to other companies that are in the same sector or industry as you. It means that employees are able to think up ways to remain ahead of the competition and how they can perform more effectively than them.
A competitive edge can be an excellent attribute for a business and can be a driving force for it to achieve great results. Productivity can even lead to a healthy sense of competitiveness between employees in the same business. They can try to best each other in terms of ideas and ways to maximize the profit or streamline outdated processes.
6. Helps With Creativity
Creativity can be like gold dust in the world of business. However, when productivity is low and people are overworked it can be hard to come up with creative and fresh ideas.
When productivity is high and employees are productive, it allows their minds space and energy to think creatively about new projects and ideas. This creative mindset can be beneficial in terms of allowing a business to launch exciting initiatives which in turn increases revenue for a business.
If productivity is consistently high, a business might even be able to delegate additional time and energy for hashing out and experimenting with creative concepts and ideas. It allows a business the time to focus on the future and its projections for months down the line instead of being concerned about its present productivity issues.
Why Is Productivity Important: Where Can I Find Out More?
Productivity and ensuring that your employees are maintaining productivity is critical for the success of any workplace.
Consistency and clear time management protocols can go a long way in terms of ensuring that a company is retaining the most out of their working hour. Before reading this article if you were wondering, ‘why is productivity important?’, hopefully, that has now been answered.
If you enjoyed this article on the nature of productivity, why not check out our previous blog posts? We are sure you’ll find plenty of things of interest!