Productivity performance of SMEs is the weakest link in the British Economy
The Public Sector and SMEs are the main 2 laggard sectors which have refused to become more Productive & efficient for the last decade.
- Why are SMEs such laggards?
- They invest relatively little in their Staff (Training & Management)
- SMEs are relatively complacent, with less ambitious profit-improvement targets
- Poor Management, Motivation and direction of staff
- Poor use & application of new technologies (NOT Expenditure)
- Inability to measure / record / target Productivity improvements
- Poor collaboration amongst SMEs to cooperate, work together and learn from one another
- Few SMEs understand the importance of Productivity, being the cornerstone of Profitability growth, only 1/3rd of SMEs even measure Productivity
When it comes to working practices linked to Productivity, PRESENTEEISM – employees who are present, but not engaged in Productive work – and absenteeism is a well-known cause of Productivity loss. In a recent study British employers lost on average 27.5 days of productive time per employee each year, or more than 10%, which costs the UK economy £73 billion each year in lost productivity.
Despite its’ high cost, UK SMEs are the least likely employers in Europe to take measures to improve Presenteeism. Just 19% of UK SMEs have taken steps compared to 26% of German SMEs and 29% of French SMEs.