How to Improve Employee Productivity

by | Oct 20, 2017

How to Improve Employee Productivity

As your small business grows your need to hire more employees will grow with it and managing people can be a tough challenge for many small business owners!

Unhappy employees are less engaged, less motivated and less successful, whereas, happy and engaged employees are more productive. To be successful, it is imperative that everyone in your team is happy at work and rowing in the same direction. Here are tips to improve employee productivity:


Employee Benefits

You must ensure there are employee advantages in place to ensure your team is motivated to reach your business vision. This could be in terms of regular social events – ask them to organise company days out – or flexible working or in terms of benefits to sit alongside their remuneration. There are many benefits available to small businesses that your employees will love!

Did you know there are now life insurance plans available, which if put in place correctly, can result in more favourable tax treatment than if the employee purchased life insurance or critical illness cover themselves? As long as HMRC are satisfied that the premiums are being paid ‘wholly and exclusively for the purpose of the business’, they should be treated as an allowable expense for taxation purposes. Furthermore, the premiums aren’t usually treated as further income paid to the employee or as a benefit in kind (P11D). This means that neither the employer nor the employee has to pay National Insurance contributions on the premiums.

Another great benefit is the Cycle to Work Scheme. Currently 180,000 people within the UK participate in the Cycle to Work Scheme. The Cycle to Work Scheme is a UK Government tax exemption initiative to promote healthier lifestyles whilst also reducing environmental pollution. It allows employers to loan cycles and cyclists’ safety equipment to employees as a tax-free benefit. The scheme is available to all employers including limited company contractors where they are the only director/employee of the company.


Read more about the Cycle to Work Scheme and how it can be an added benefit for employees!]


Both schemes are excellent ways for employers to provide valuable added benefits to their employees and are useful tools in recruitment and retention.


Ensure Team Alignment 

Even if a team is trying to accomplish the same goals, that doesn’t stop everyone from going off in different directions to accomplish these. Your team needs to be aligned and moving in the same direction. Ensure objectives are communicated clearly and that everyone knows what they have to do in order to succeed. Every team member should be able to tell you the purpose and outcome of a project, if you get different answers, you’ll get different results!


Acknowledge Achievement and Celebrate!

Regular reviews mean that employees have the chance to provide feedback to you or the management on their suggestions for improvement. Building an atmosphere of transparency and openness empowers the individuals and creates a sense of responsibility for them to really feel attached to their job.

Furthermore, celebrate success! SRK was recently nominated for three awards in the British Accountancy Awards and we took the entire team along to the awards night. Not only did the team get to enjoy celebrating our win for Innovative Project of the year, they all also knew they were valued and that their hard work had paid off.


Remember happy employees mean happy clients which is the key to the success of your company!


And finally, our final tip is… team fitness!

Healthier people are more productive employees. Sickness absence tends to be higher among unhealthy people and this puts pressure on those people who have to pick up the extra workload. 

If you do not have the budget to provide fancy gym memberships to employees, why not inspire the team to get fit for their chosen charity. Not only will you raise money for a cause that is important to your team but you’ll also have happier, fitter and more productive employees!

Growing your business is not an easy task, book a free strategy session with a senior GrowFactor Chartered Accountant. No strings attached.

Book Free Strategy Session

How can we help?

We work with amazing businesses across the UK and beyond.

Give us a call to speak to us now, or request a call back or fill out our form and a member of our friendly team will get back to you within 24 hours.

Telephone: 0330 403 0010

Thank you for reading! Please leave any feedback and comments below.

Related Resources