3 Ways to Improve Labor Productivity Right Now
November 21, 2022 | Staffing Blog
Increasing labor productivity is one of the most critical aspects of successfully running a commercial or industrial business. The question is, what approach should you take to get the results you are looking for?
When evaluating opportunities to improve productivity, it’s easy to assume that you must wait until you have the absolute best systems to realize the desired results. However, that’s not the case. If you’re looking for ways to improve labor productivity, consider how you can make changes right now that will make a big difference.
You Can Improve Productivity With Smart Decisions
Here are three ways you can drive improvements to labor productivity today.
1. Numbers Never Lie: Use the Data
One step to boost workplace productivity is using data to drive decision-making. There’s nothing wrong with waiting to implement new systems to drive productivity growth, but you already have access to valuable data that can help you find areas where your processes can improve.
No matter your industry, Key Performance Indicators (KPIs) should be available that measure the productivity of your employees and workers. You should also have access to industry benchmarks that indicate acceptable productivity levels and which levels need improvement.
- Compare your KPIs against industry standards.
- Look for gaps that need to be closed to improve productivity.
- Look for areas of strength that can be further maximized.
For instance, if you oversee a factory that relies on an assembly line, you should know how many items need to pass through each part of the assembly line per hour. Even if seems as though things are going well, take the time to analyze data, and determine if there are ways that you can improve productivity.
2. Talk to Your Employees
Your workers have something to say about what would improve labor productivity. You just need to ask them.
It doesn’t matter how nice your building is or how cutting-edge your equipment is. If your employees are not motivated to get the job done, your company will not succeed. So, one of the best ways to improve employee productivity is to meet with your employees and ask questions.
Your employees want to provide you with quality performance. If you’re running your business the right way, those employees want to work for you, and they understand that one aspect of keeping their jobs is meeting productivity standards.
Additionally, when you have procedures in place that boost productivity in the working environment, your employees face significantly less stress.
Analyzing data can certainly help you find weak spots in your processes, but speaking to your employees is the best way to gather information about things that can be improved in your business.
- Are your tools and equipment worn out?
- Are there safety issues or hazards in the work environment?
- Do your employees and workers feel like they are not supported to get the job done?
- Are there extenuating circumstances that don’t appear in the metrics that negatively impact their ability to be productive?
Commit some time each week or month to discuss ways that you can make life easier for your employees. Doing so will give you greater insight into what’s really going on in your business.
3. Incentivize Productivity
No matter how much your employees love working for your company and appreciate that you offer them employment, you must understand that the most popular reason employees stay at a company is their compensation.
Ethically, you should pay your employees a fair wage for their work. Ensuring that the people who make your business functional make a living wage is always the right choice. Additionally, data proves that you can improve employee performance by offering production bonuses.
If employees recognize that there is a correlation between productivity increases and the amount of money that they can make, they will be more inclined to meet the productivity benchmarks that you establish.
– Let’s revisit the factory example that we discussed earlier. If your business has been shipping out 5,000 boxes of a finished product a day, you should consider incentivizing employees to try to reach 7,500 boxes of the same finished product a day. Employees who see a tangible reward for working hard will work even harder for you.
– It is important to note that if you incentivize these higher production levels, you must give your employees the tools necessary to reach them. If you follow outdated processes and have poor equipment that makes reaching that higher level impossible, the bonus structure will negatively impact your employees. They will believe there is no hope of obtaining a bonus.
Let’s Identify Specific Ways to Improve Labor Productivity
At Allegiance Staffing, we help commercial and industrial companies elevate their operating reality by analyzing the entire operation, including the quality of your workforce. If you want to improve productivity in your business, contact us today to identify a solution.
Our team of productivity experts can not only evaluate opportunities for you to improve your company’s production, but we can also provide you with high-quality staffing solutions that will make improve your current operations.
Schedule a consultation with our team today. Let’s discuss your company’s specific challenges and identify some real ways to improve labor productivity in your workforce.