We’re in the midst of a productivity crisis here in the UK. In fact, recently Phillip Hammond announced that UK Productivity estimates needed to be readdressed after a decade of stagnant growth. So how do we address this problem?
One critical aspect companies can leverage to spur growth is the employees. Optimize workforce output with modern best-practices is a vital piece of the productivity puzzle in the UK, in particular, changing the way we pay our staff. To that end, here are key areas that UK businesses (or any for that matter) can focus on to address their own productivity to challenges.
The Uberized Workforce
It is no secret that we now live in the era of the ‘Uberized’ workforce, yet the majority of businesses have a management system that, on the whole, is still thinking like the traditional taxi dispatcher. What businesses need to do is implement systems that provide their workforce with the tools to gain a holistic view of their performance as there is a real value in enabling employees to map and track this themselves.
Put the Right Incentives in Place
To address productivity, we need a fundamental evolution in the way we make use of the hours in the day, which can be incentivized with how we reward employees. As a country, we must move away from the old-fashioned salary economy to the performance economy.
In place of paying people based on their position and tenure, employees must be rewarded for their output, which will ultimately create a more direct link between staff remuneration and the impact that they have on the business. Financial incentives are a powerful motivator.
Our own research found that over a quarter of UK employees, a financial bonus is their main motivator, yet a large portion of employers do not run any kind of monetary incentivization programme. Crazy, right? Directly linking money to output using an automated system will allow employees to see the impact of the work they do in their pay packet in real-time.
This approach can also address some negative working practices, such as spending long unproductive hours in the office when in fact the same amount of productive work can be completed in a few targeted hours.
To move to this performance-based model, businesses must first assess their workforce and identify what they need to do to be successful. It’s then a case of deciding on the corporate metrics to monitor this and applying technology that can automate and monetize the execution against those goals. In this way, companies can ensure that employees are focused on the work that will most benefit the business.
Piecing the Puzzle Together
Companies can—and should—incentivize the outcomes that fit with the business’ objectives. For example, smart incentive schemes can link rewards to individual achievements and even drive productive behaviours throughout the year, including everything from closing large deals to inputting data accurately into business applications.
Companies that implement the right tools to automate the process will see a significant impact on employee engagement as their time and energy is more clearly aligned with overall business strategy. Automating the commissions process also means a significant reduction in errors thanks to the lack of third-party interference and use of Excel, which 90% of have errors that can affect their results.
Ultimately businesses are meant to generate revenue and find ways to cut costs along the way. By automating the process, sales teams can have the right incentives in place without the headache of having to calculate it themselves. As a result, reps can spend their time focused on their targets, companies can reap the rewards, and sales teams can meet their targets and beyond.