What are the 5 Main Things That Affect Productivity?

What are the 5 Main Things That Affect Productivity

Productivity is one of the crucial factors that determine a business’s success. It signifies how fast your business is producing the desired output. In simple terms, the greater the productivity, the larger the profits. Utilizing minimum resources to generate a higher turnover, results in cost saving for the business. To achieve maximum productivity, you need to understand the aspects that influence it and how to manipulate them.

Human Capital Productivity 

Employees are the biggest assets of your company. The productivity and output of your business are directly linked with the personnel that you hire. Selecting the right people for the right job and maintaining your employees is essential for your economic growth. You can increase your employee productivity by improving:

  • Employee Engagement and Satisfaction: A satisfied employee is more likely to be engaged in work and hence be more productive. Providing a constructive work environment, encouraging employee feedback, and motivating your workforce through incentives upon completion of tasks can drastically increase employee engagement and produce better outputs for your company. Creating clear and achievable goals is essential to increase productivity. Setting unrealistic and unattainable goals will result in a loss of enthusiasm, engagement, and ultimately, productivity from your employees.
  •  Employee Wellness: Overworking your employees will only yield poor results. Physically and mentally healthy employees have a better capacity to deal with everyday tasks and produce more effective results. Sick of burned-out employees will only yield subpar products. Offering your employees health benefits will not only ensure their wellbeing but also increase their job satisfaction.
  • Employee Training: An employee is only as good as his skillset. An untrained and incompetent employee will only slow down the productivity and efficiency of your company. Investing in training programs for your employees will enhance the productivity of your company in the long run.

Technical Aspects

Technical aspects of a business refer to the location, size, and layout of the plant, equipment being used, automation and software, etc. Staying up to date with the current technology is imperative for a business to flourish. Utilizing ERPs to streamline and optimize business operations will make tasks simpler, easier, and faster for your company and increase its productivity. Incorporating ERP solutions into your business will enhance functional performance, run faster diagnosis, and acquire detailed analytics and solutions.

Production Aspects

Mapping and carefully controlling the productions by all departments is key for a growing business. Using an inventory management system to track production and raw-material use will help you keep an accurate record of your production and profits and save your valuable time. Employing a management system along with using quality raw-materials will enhance the turnover of your business.

Financial Aspects

Finance is the backbone of any business and productivity heavily relies on it. An appropriate financial plan, according to the needs of the business should be set in motion. managing fixed capital and working capital according. Going over budget on capital expenditure can negatively affect the company. That being said, under-utilization of capital can also slow down task completion and decrease productivity.


Effective management could make or break productivity. A sign of good management is generating the highest output, at the lowest costs and greatest efficiency. Management should be encouraging, professional, and above all, qualified. Integrating business management systems can streamline and simplify operations to a great extent and enhance output.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>