Productive companies get more out of what they’ve got, enabling them to increase profits, pay higher wages and invest in the future.
What is productivity?
In simple terms, productivity is a measure of the amount of output a business produces for a unit of input. Understanding productivity is therefore key to understanding business performance.
UK productivity is 22.8 per cent lower than that of France. This has a serious impact on the UK economy.
What is benchmarking?
Benchmarking helps you to understand how well your business is performing relative to similar businesses. It allows you to gain a greater insight into exactly how well you’re performing as a business.
Our benchmarking tool works quickly and accurately, by pulling data from the Office for National Statistics and Companies House, we can compare your performance with over 48,000 across the UK.
How is it calculated?
Productivity is defined as the ratio between output and input. Our measure of output is gross value added (GVA). This is the difference between the value of goods and services produced and the cost of raw materials and other inputs that are used up in production. Our measure of labour input is workers (employees and working proprietors).
Read about businesses such as pork scratchings company Snaffling Pig, which faced a challenge when it came to reconciling a divisive culture among its staff. With office and warehouse staff working in separate buildings, an “us and them” mentality had rooted itself in the company.
For COO Udhi Silva, it was crucial that staff united behind the same vision to help the business move forward.
We can help you get started
Did you know there is a direct link between management style and business performance? Be the Business has identified the four key management areas you can focus on to improve overall business productivity. Use our quick drag and drop tool to help you identify which key area to focus on most as a leader.