Business Management

5 rules to improve operational efficiency and productivity of small organizations

Beer Singh

Updated: May 27, 2020 · 5 min read

Toolkit for download in this article

small business employee productivity efficiency

Employee productivity is the core of every business. Capital is the lifeblood of a company, but employees, or rather the work they do, is the oxygen.

It's essential for you to make sure that productivity is up to the mark. These are strained economic times, and no business can carry the deadwood of an unproductive worker.

Competition is on the rise, and you have to make your employees work harder and smarter.

How to do so without causing friction and straining relationships? U.S. Bureau of Labor indicated in a 2016 study that employees are less productive than they used to be. Employees like to think that they're giving their best even if that is not the case. As the owner, you have to handle it carefully and with sufficient empathy.

We present 5 possible ways to improve efficiency and augment productivity:

1. Opportunity to develop cross-discipline expertise

Unless one is a test pilot, any job becomes boring. According to a study, 46% of men say they are likely to leave a job if they are bored.

It's boredom that leads to slackness. The human mind is undoubtedly stimulated by learning. Some studies show that learning raises self-esteem.

You can make the workplace more exciting by rotating the staff through various departments. It need not be that they hold a permanent position at their new office.

Someone in the assembly line may find it exhilarating to observe how marketing happens. And similarly, a marketer may be glad to understand HR and its process, and how employees are appraised.

Not only does it make a job less monotonous, but a worker or staff gets to have a fresh perspective.

It's also insurance regarding business continuity. In a pinch, someone from marketing can step into an HR role for a few weeks.

2. Raise the corporate culture

Every workplace has a culture that's unique. Not only does it depend on the product or services that the company offers but its core values.

A work culture that stresses the importance of building team relationships and encourages the development of trust between employer and employees goes a long way toward improving productivity.According to a study by researchers at MIT, trust can double the productivity.

It's not the fear of punishment and retrenchment that causes people to give their best but positive steps toward the betterment of the workplace.

Productivity is the result of motivation, which in turn is directly derived from an encouraging atmosphere.

3. Effective communication

Communication is a significant criterion for raising the efficiency of the organization as a whole. It's the source of information and provides clarity about what, where, why, and how of any task.

Lack of communication may lead to confusion, and as a result, the execution of a task may not be up to the mark. This would bring a drop in quality and subsequently, a reduction in customer experience.

Communication isn't only the source of all subsequent action, but it's also shaping an individual by making them better informed. A more informed employee is always better than one who isn't informed.

The strategic and tactical goals of the business must be communicated in no uncertain terms to every key staff member.

It also provides a clear delineation of duties, and there's no management lapse that's the cause of so many businesses going under.

It's not easy to communicate. You can truly believe you have done so, but there might exist considerable doubt in the minds of those you interacted with.

Every cycle of communication must end with feedback that assures you about the integrity of the process.

It's also important to note that the communication cycle is two-way. It not only should be from the top down, but also from the bottom up.

Bottlenecks and difficulties in production or delivery must be correctly communicated to the CEO by his assistants.

The sincerity of the shop floor workers (or their equivalent) and the decision maker must not be undone by the "fog of middle management" between them.

4. Appropriate technology

To perform well, one needs the right tools. Most often, this is in the form of new technology that assures and assists the staff.

At one time, small businesses couldn't afford hi-tech equipment. But due to rapid improvements, technology has become affordable and easy to procure.

The key is not to purchase industry-leading, premium technology for problem solving. Instead, it’s about identifying the key levers, and using technology to keep them oiled. Employee productivity is a key level of success, and to oil it, use time management software such as OnTheClock.

Leveraging this new age time-clock technology is one of the best ways for you to increase productivity and ensure that employees arrive and depart on time.

In the same manner, you may benefit immensely from automating timesheets and payroll processes. Like we said, identify the lever, and use tech solutions to oil it.

5. Appreciate

Nothing can provide more joy than a few words of appreciation. No employee works for money alone. When you encourage your workers, they feel a rapport toward you that is worth more than any monetary bonus.

Show your respect for their hard work through gifts and tokens that recognize their hard work and contribution. Personalize these items with the help of iCustomLabel and exhibit your admiration for their contributions.


It's not easy to increase productivity immediately. The process is a continuing one with incremental changes.

Monetary rewards are one way to increase productivity but have their limits. Happy and satisfied employees are the best.

Your primary endeavor should be to put yourselves in the shoes of those who work for you and ask if you have everything you need. Whatever you find lacking, fulfill those needs, and you never have to worry about raising productivity.

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