SMEs can only increase real wages and EBITDA based on improving both labour and capital productivity

It has never been more difficult to attract and retain skilled staff. With inflation rising above recent historic levels, real wages are decreasing at the fastest rate for around 50 years.

It is essential that SME’s increase revenue without necessarily hiring more staff. This means growing labour productivity and can only be done if Managers have accurate reporting systems to measure and assess the efficiency, with which staff complete each process within their Department.

For this, Managers must have a much clearer understanding of all employee work activities. The only way to achieve this is to have a comprehensive reporting system that presents granular data at Department Level. Having this data available then enable firms to achieve the following:

• Reward more productive staff

• Up-skill their existing labour force

• Increase staff engagement which improves employee Well Being

• Have a clearer picture as to where productivity improvement can be made

It is crucial to have firm level and department level activity and productivity tracking and reporting. With firm wide reporting in place executive management can focus on the areas which will bring the greatest efficiency gains in the shortest time. When making organisational changes it is important to report on the impact and demonstrate a payback on these change programmes and investments. Opagio’s Operational Excellence platform helps SME’s obtain an iron grip on operations and helps them deliver significant improvements in staff retention, productivity gains and future growth plans.