What if… Productivity is ignored?
Productivity is the efficiency of producing goods or services expressed by some measure. For businesses, productivity measures how well they generate revenue from input, labor, and materials. Business productivity usually refers to productivity as revenue divided by hours worked. For company leaders, an aggregate productivity level isn’t likely to provide actionable insights, but it can help them see how they compare against the competition or other leading firms.
Lack of or low productivity creates a cascade of problems. When there are issues with workflow, poor decision-making, or scope creep, it can cause low morale within your entire team. Employees don’t want to feel like they’re wasting their time. They often disengage if a project moves at a snail’s pace. This is particularly common among top performers. Your best employees strive to succeed but can only do their best if other teams keep up. Before long, your high-flying stars might get incredibly frustrated and discouraged. When that happens, they’re more likely to quit and take their skills to the competition.
The lack of productivity has severe impacts on business, like:
- Reduced profitability;
- Employee disengagement and lower team morale;
- Sub-optimal utilization of the workforce;
- Lack of motivation and creativity;
- Delays in project timelines;
- Workplace toxicity and high employee turnover…
