How to improve workplace productivity
BLOG
IS OUR APPROACH TO SOLVING THE PRODUCTIVITY CRISIS ALL WRONG?
It feels like barely a week passes without a new story on a productivity crunch or plateau for organisations.
Since the global financial crisis in 2008, there has been a near-universal slowdown. In advanced economies, productivity growth fell to less than 1% per year between 2012 and 2022.
This is despite the influx of streamlined systems and tools.
Why we must address the productivity crisis
High productivity is one of the two main drivers of business and economic growth. The other is an increase in the number of people working. Ageing populations are presenting opportunities for increased numbers of employees. But the importance that organisations place on improving productivity remains.
What’s more, ongoing economic uncertainty continues to demand higher outputs from fewer resources. Tight budgets and challenging targets require higher levels of delivery.
And, in many instances, artificial intelligence (AI) technologies have not been the silver bullet organisations have hoped for. As recent investments in technology start to come to fruition, companies seek the best ways to harness their investments for growth.
How to improve business productivity
The best way to improve business productivity is not always to squeeze more out of existing processes. There’s more at play here, including organisational and people factors. As such, many businesses need to refocus their attention and learn how to improve productivity in the workplace.
Here are seven great ways to improve business productivity.
1. Target what matters: redefine how you measure productivity
Consider whether speed really does equate to productivity. In a landscape where quality is increasingly more important than quantity, it’s time to consider the metrics we measure.
Global learning company Pearson has seen its productivity levels improve. Senior HR Manager, Kevin Lyons, attributes this success to one clear shift. The business moved away from the traditional focus of output per hour. Instead, Pearson focuses on the quality of customer service as a driver of productivity.
“Measuring yourself against the quality of customer service keeps you nimble, reviewing your processes and culture. Therefore, you’re less likely to lapse into lower productivity,” says Lyons.
Reviewing processes and linking to outcomes has led Pearson to outsource a number of activities. One example is the offshore outsourcing of the help desk for the 30,000 assessment associates Pearson employs each year. First-line support has improved significantly, with 90% of calls resolved at the first stage. The business is also able to better manage peaks in demand for the service.
2. Reorganise processes: identify time consuming tactics
Outsourcing is one way of reorganising processes to boost productivity. But pharmaceutical giant Pfizer has tried a different way. When Albert Bourla joined as CEO in 2019, he tasked managers with finding a way to simplify processes. He also looked at streamlining structures and governance. Bourla wanted to empower employees and drive faster decision-making.
A leadership team asked colleagues which processes were taking up time and energy. Meetings and emails emerged as the biggest drains on productivity. Pfizer engaged a team of volunteers to come up with practical and quickly implementable solutions.
HR Business Partner of Pfizer in Russia commented:
“The changes have helped to free up capacity for growth and liberate our time to focus on what really matters – delivering value to patients and people who need us.”
3. Revise roles and responsibilities: highlight your most valuable players
Research from Bain & Company reveals compelling links between talent management and productivity. The best companies are more than 25% more productive than the rest, thanks to how they manage their best talent. This success includes the roles and responsibilities they assign to high-performing employees.
The first step involves identifying and tracking the progress of star talent. Then, you assemble all-star teams and put them on mission-critical initiatives. This approach removes obstacles to teamwork and controls egos.
Rupert Morrison, CEO of Concentra Analytics, explains:
“Most large companies don’t know enough about their employees or what they do. For organisations investing in their future, getting better information on people and what they’re working on improves productivity. It makes sure the right people are in the right place at the right time.”
4. Offer high-value opportunities: invest in professional development
It’s important to motivate and reward employees who tackle the productivity crisis on your behalf. Long-term team members will be more productive if they feel valued. Employee engagement and personalised support leads to increased levels of productivity across the board.
US management gurus, Marcus Buckingham and Donald Clifton, make this point in their book: Now, Discover Your Strengths. The writers encourage managers to identify employees’ strengths, rather than weaknesses. This positive approach reduces turnover, boosts morale and improves business performance.
Lyons urges organisations to strike a balance between performance management and people development. To improve productivity in your workplace indirectly, investing in areas like:
- Learning and development.
- Diversity and inclusion.
- Wellbeing and mentoring.
As a result, employees are less likely to experience the job insecurity that productivity-gain initiatives can sometimes bring.
5. Identify workforce needs: offer flexible solutions to retain the best talent
Looking at the personal needs of employees can also help. Juliet Turnbull is Founder and CEO of 2to3days. This start-up focuses on advancing women’s equality in the workplace through flexible working.
Turnbull says that companies must be willing to adapt to accommodate flexible workers. These organisations are more likely to have happy, productive, loyal workers. This approach in turn, pushes down recruitment costs. Simple adjustments, like working from home schemes, can help to retain employees long-term. By retaining talented workers, organisations can avoid loss of productivity through lengthy hiring processes.
Former LEP Director Lorna Carver explains: “We’re not saying that economic methodology around productivity will fall away – productivity is still about value. But how do you balance that with things important to people like health, wellbeing, social value and cultural capital?”
6. Use technology: seek new tools and skills to streamline processes
Automation is a great way to streamline mundane processes and increase quality with error-free results. Technology integrations can boost productivity almost immediately. For example, sophisticated chatbots can provide first-line support in a fraction of the amount of time for manual intervention. However, these efficiencies are only accessible if you implement technology effectively.
High investment costs for automated technologies have put off many organisations. But the biggest risk area for this approach is actually related to a lack of relevant skills. To improve business productivity for the long-term, you must invest in skilled workers to support and maintain your technology.
Organisations seeking to employ new technologies should follow a strict process when deciding what to automate.
- Review the activity and existing processes
- Re-engineer your current approach, if you can.
- Only then consider automating your process.
At Pfizer, automation is part of a transition to becoming a growth company. The company has automated HR processes via Workday HRMS. But how can companies deal with the unsettling effect of automation on employees?
“You need to allow colleagues time to adapt to new technology and see its advantages. Once they understand the gains, they will use it effectively. The simpler and more intuitive your technology solution is, the better.” - Novoderezhkina, Pfizer.
7. Expedite your hiring process: seek support to speed up recruitment
Recruiting for new staff can be costly and time-consuming. Reducing time to hire can minimise any downtime caused by resource gaps. And improving onboarding can speed up the timeline for a new starter to become productive.
Working with a professional managed service programme provider (MSP) can simplify the hiring process. Outsourced support can take the burden away from your internal teams. This approach lets your team focus on high value activities - improving productivity across multiple workstreams.
MSP services from providers like Hays could help to address the productivity crisis in your organisation.
Take a multi-pronged approach to improving productivity
There are many different ways to improve business productivity. The best approach for your business will depend on the needs and expectations of your employees.
Whether automation, outsourcing, revising roles and responsibilities or adapting workplaces, employers must forget their old ways. Instead, boost productivity through a much wider range of drivers to maximise their effects on staff, productivity and output.
Read more advice for how to improve business productivity: