Productivity
How to make your office technology work for you

The UK Productivity Puzzle: Solving the Dilemma Through Technology
For over a decade, the United Kingdom has been grappling with a persistent issue known as the “productivity puzzle”. Despite advancements in technology and an increase in business activity, productivity levels have remained stagnant since the financial crisis of 2008.
While economic growth and employment rates have recovered to pre-recession levels, productivity continues to lag behind. The latest data shows a decline of 0.1% in output per hour in the UK, marking the second consecutive decrease in productivity.
Despite the availability of cutting-edge office technology such as software as a service (SaaS), cloud computing, and a plethora of online services, UK small businesses still struggle to optimize their productivity levels. The gap between the top and bottom 10% of firms in terms of productivity is significantly larger in the UK compared to other European countries like the US, France, and Germany.
Shaun Shirazian, UK head of product at Intuit QuickBooks, emphasizes the need for digital-led strategies to enhance productivity in small businesses across the UK. He points out that the adoption of technology can play a crucial role in transforming businesses and closing the productivity gap.
Identifying the Reasons Behind the Decline in UK Productivity
Experts have put forth various theories to explain the productivity stagnation in the UK. One argument suggests that the availability of cheap labor from the European Union has deterred businesses from investing in advanced tools and equipment. However, with Brexit looming, the dynamics of the labor market could undergo a significant shift.
With the UK experiencing record-high levels of employment, organizations are facing challenges in finding skilled talent, especially with a decline in EU immigration. This necessitates a focus on equipping the existing workforce with the necessary tools, training, and direction to boost productivity.
Andrew Moyser, a partner at MHA MacIntyre Hudson, highlights the role of government support in encouraging businesses to invest in productivity-enhancing measures. Initiatives such as R&D tax reliefs and increased investment allowances can incentivize businesses to develop strategies for improving productivity.
Harnessing Technological Innovations for SME Growth
On the technological front, there is a plethora of tools and solutions designed to streamline communication, financial management, marketing, and HR processes. The subscription-based model of payment for these technologies eliminates the need for large upfront investments by businesses.
Mathias Mikkelsen, founder of Memory, emphasizes the importance of strategic planning in leveraging available technology effectively. He notes that many SMEs invest in technology without a clear implementation strategy, highlighting a need for improved management and leadership skills in businesses.
Addressing the Digital Skills Gap
Research indicates that SMEs are struggling to find workers with the right digital skills, leading to a significant gap in the workforce. Training and education programs, along with policies focused on career development and workplace culture, are essential in bridging this gap and maximizing the potential of existing staff.
Henry Stewart of Happy emphasizes the importance of not only upgrading IT systems but also implementing effective training programs to ensure staff understand and utilize technology to its full potential. Investing in employees’ digital skills is crucial for driving efficiency and productivity within the organization.
Key Strategies for Maximizing Office Technology
When it comes to upgrading office technology, businesses are advised to follow a structured approach:
- Plan the upgrade meticulously, identifying areas where technology can drive productivity.
- Develop a comprehensive implementation strategy, including staff training and communication.
- Evaluate the outcomes of the new system to determine its impact on productivity goals.
By adopting a thoughtful approach to office technology, businesses can make significant strides in enhancing productivity and contributing to the overall economic growth of the UK.
This article is sponsored by Dell Small Business. Click here to learn more.
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