Carl Taylor Senior Consultant

As a business owner, your people are your most valuable asset and a significant investment.

Improving their productivity can have a significant impact on your company's success. The fundamental measure for staff productivity is the productivity ratio, which can be calculated by dividing gross profit by total overhead wages including owners.

If your productivity ratio is less than two, you are unproductive and inefficient. If it is between two and three, you are on target, and above four, you are cruising. To improve productivity, here are five tips:

Streamline and cut out waste by investing in your systems: Outdated and inefficient systems can sap the time and energy of your workforce. Investing in up-to-date systems and cloud software can cut out wasted time, allowing employees to spend more time on productive tasks.

Set realistic and achievable targets for each staff member: Set targets for employees that are realistic and will challenge them. Measure their performance against these targets, as what gets measured gets done.

Have salespeople focused on the most profitable products: Make sure your sales team's time is invested in selling products that yield the most gross profit to maximize their time's return.

Improve employee skills through training: Training is essential to ensure productivity. Even just making sure your employees know their way around your systems can improve their efficiency and productivity.

Make sure you're not overstaffed: Employing full-time experts with a narrow field of expertise can be a financial drain on your business. Get experts in to advise on specific projects as and when you need them.

By focusing on these five key areas, you can increase productivity, profitability, cash flow, and rewards for both you and your staff. For more information on how we can help you and your business please contact us at info@oldfieldadvisory.com or call 02476673160.

Please note: This article is provided for information only and was correct as at time of writing (27/04/23). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance.  No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.