SME managers and employees disagree over productivity

A new report indicates that the managers and employees of small and medium sized enterprises (SMEs) disagree over the meaning of productivity, which is having significant impacts for their companies.

This report was published by Employment Hero, a company that provides HR tech solutions. It shows a major disparity between SME managers and employees when it comes to the measurement of productivity. 72% of managers told the study that their companies had experienced improvements in productivity during the last 12 months. The main factor that they cited for that was the adoption of new technology.

What the report also found, however, is that employees generally disagree over what constitutes productivity. Whereas managers measure it based on things like time spent working, employees see it more in terms of job satisfaction. The report reveals that those who feel meaningfully engaged with their work are also two times as likely to consider themselves productive.

It is further proof of how important employee engagement is to business success. It is something that must be made integral, even if that means culture change. SMEs can always bring in a corporate culture consultant to help with the process.

The disparity in productivity measurement highlighted by the report is having real consequence for SMEs. One out of every three is running on ‘survival mode’, which means little in the way of innovation and growth.

That suggests there is a flaw in the way managers are judging productivity, as it is not feeding into sustainability or growth.