Employee Productivity and Small Business Profitability

Many small businesses struggle with measuring employee productivity and therefore their small business profitability. The reason for this struggle are goals that are either not set, or set and not followed up on. Ones goals for employee's are set they are not being inspected for success or accomplishment, which decreases employee productivity. Even the most reliable and hard working employees need goals and inspection to keep up productivity. Because people tend to adapt to their own routine and develop their own productivity standards, management needs to set and guide the standards of employee productivity. Management is naturally concerned with profitability, in turn making it natural that management sets standards and inspects them for success. Not only is management concerned with profitability, but they know their small business quality standards best.

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Small business owners who do not set measurable goals for employee's and, once again, don't inspect these goals for accomplishment, will get lower quality work and unmeasurable profitability. The importance of follow up or inspection can't be stressed enough. Employee's need clear standards of what is expected of them. Once employees know their expectations, follow up motivates employees to achieve those goals on time, increasing both productivity and profitability. Communicating and reporting on work done is also important in small businesses because it keeps information up to date with all the parties involved. Communication is another motivator for productivity and profitability. When starting up a small business or looking for more small business success, constantly keep employees informed on what is expected of them and do regular check ups to ensure that productivity is not decreasing.

 

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Posted in Home Post Date 12/14/2020


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