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SMEs urged to improve productivity

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SMEs urged to improve productivity

A new study suggests that ‘poor company culture’ is costing the UK economy billions of pounds every single year – and that small and medium-sized enterprises (SMEs) need to do more to motivate their staff and boost productivity.

According to a report published by cloud computing company Breathe HR in recent days, business failings in areas such as agility, engagement and productivity are costing the UK economy approximately £23.6 billion per year.

The report, entitled The Culture Economy, claims that UK workers are around 27 per cent ‘less productive’ than their German counterparts, while SME owners and decision-makers are failing to set aside adequate time to motivate their workforces.

According to the report, monitoring the likes of culture, happiness and employee engagement is vital in order to fuel productivity, keep workers happy and ensure a business is running smoothly.

Yet 22 per cent of SME leaders admit to doing nothing at all to measure productivity in the workplace.

This is despite the fact that the vast majority (60 per cent) of company bosses said they felt doing more to encourage a ‘positive workplace culture’ would drive better levels of client service and satisfaction.

The report adds that SME bosses urgently need to address this “serious issue,” as the UK is currently running at 17 per cent below the G7 average in terms of productivity – and almost 30 per cent below nations such as Germany and the USA.

The findings come at a time when the Government is increasingly trying to encourage innovation and productivity among small businesses.

Breathe HR’s report can be accessed here.


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