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What Causes Low Productivity in Small Businesses?


In small businesses, even a single employee is valuable and should contribute in some substantial way towards the success of the venture. Most small business owners will only employ a limited number of key personnel to handle essential tasks; so it’s important to ensure every employee is productive. Unfortunately, this is easier said than done and is often neglected in such establishments.

Productivity in Small Businesses

Here we list some possible causes of low productivity and their solutions.

Management Problems

Regardless of whether the business is large or small, this is one of the most common causes of low productivity. Owners usually double as managers in such establishments, but they don’t have the training and experience to handle employees well. Small business owners should research employee management practices and ensure they provide their people the support they need to work well. If you create a good environment in your workplace because employees are comfortable and eager, your business would enjoy high levels of productivity.

Employee Dissatisfaction

This is also one of the most common causes of low productivity. When employees work, they need to feel like they’re rewarded for their efforts. Most business owners assume that money is the only incentive that motivates employees, but in most cases, that’s not true. Employees also value active feedback, acknowledgment of their hard work, personal and professional growth, and learning.

These things offer deeper fulfillment and encourage them to work harder. The best way to deal with employee dissatisfaction is to get to the root cause of the problem and work with your employees to find a solution. That would show them you care about their well-being and are willing to go the extra mile to keep them happy in their professional life.

Outdated Systems

There are many ways in which you can improve and simplify your business process. Today, you have access to cloud-based software, sophisticated operating systems, and other such tools to help improve the overall productivity of your company. If you still stick with old and ineffective systems, you’ll start to lag behind your competition. You should consider automating anything that can be automated, and streamline your business process. You’ll find that your employees will work better in such environments and your business expenses will be lower.

If you know and understand the causes of low productivity, you can develop strategies to correct them and encourage your employees. It’s a good idea to consider all your employees and their potential carefully, and help them find their stride.


Posted In - Entrepreneurship



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