Why businesses must focus on quality over quantity

Productivity is an area of focus for many small firms in the current economic climate and a new report has revealed what actions could be beneficial for enhancing business.


According to the Chartered Institute of Personnel and Development (CIPD), clear links exist between productivity and how people are managed in the workplace.


Essentially, it suggests that the quality of workers is far more important than the quantity of them, as a smaller team can work just as efficiently as a larger one if it is managed properly.


Management was found to be one of the main reasons behind why some companies perform better than others – those that focus on getting the best out of people tended to see more success.


Businesses that develop high-quality goods or services performed better than those producing low-cost, while there was also clear correlation between boosted productivity and locations where workplace culture is clearly aligned with the direction the business is going in.


Despite concerns over productivity, the CIPD report suggested that only 41% of businesses see the issue as a current priority.


A third of firms lack any means of accurately measuring productivity too, while many misunderstood the term, often confusing it with business performance.


According to the report there are a number of factors that could help enhance businesses, including the introduction of high-quality management and good people practices.


Similarly, management-employee relations, employee engagement and building trust all help to boost productivity and output.


It is difficult to recommend hard and fast rules that deal with these aspects of business, with it down to individual companies to embrace processes that work for them.


Increased productivity should enable a firm to drive sales and boost its finances – helping to ensure a sound financial footing from which success can be developed.


However not all firms find themselves in this sort of position; making good financial and people management a vital part of their business.


For those facing any financial difficulty, seeking assistance and advice from insolvency practitioners may provide a solution to get their business back on track.


By Phil Smith


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