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Productivity Balance

Christy Nelson
September 7, 2023

It is essential that businesses monitor and develop strategies that can keep labor productivity at a healthy balance.  

It is falsely assumed that if labor productivity is high that a business is healthy and doing well.  Businesses who run unhealthy high productivity numbers may suffer from staffing issues.  Staff members being pushed too hard loosemotivation and may quickly stuffer from burn out.  These factors can yield a higher-than-averagestaff turnover rate.  With the increasingexpenses related to onboarding, the challenges surrounding decreasedapplicants, and the overall shortage in the labor market maintaining employeebalance and satisfaction must be a priority. In addition to staffing concernsthere are customer concerns. Order accuracy tends to decline when productivityis too high.  Customers expect accuracyand when that trust is broken even loyal customers will look for alternativesourcing.  

Low labor productivity can be equally as toxic as high laborproductivity.  A culture of complacency withina team and can prevent a business from increasing productivity rates even whenthe need arises.  The rapidly increasing supplyrates combined with low productivity will eventually make it impossible for a businessto make profit.  Low labor productivitycannot be ignored, and intentional action steps must be put into place.  

Maintaining a healthy productivity balance is essential for ahealthy business.  Business leaders must monitorproductivity standards through consistent measurement, goal setting, and communicationwithin a company.

Some thingsto think about:

1.    Do you have a measurable productivity level?

2.    Have you clearly communicated this with your team?

3.    Are you providing timely feedback and adjusting processes asneeded?

4.    What goals have you and your team set to help your productivityrates?

5.    Does your team have the resources they need to meet the goals?

6.    Who will provide team accountability and encouragement?

7.    What challenges do you foresee impacting your goals?

8.    How will you adapt your processes to meet these challenges?

Written by Christy Nelson owner and founder of The Benison Eventsand Coworking Center  


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Christy Nelson
September 7, 2023