5 Ways to Increase Labor Productivity

If you begin to notice your business productivity is beginning to slow down, it may be time to assess your supply chain and determine the reason why. When you increase labor productivity you are helping your company identify and overcome disruptions, learn better communication skills, and increase your overall bottom line. It can be difficult to pinpoint exactly what is disrupting your business and supply chain but once you are able to make these changes it can increase your labor productivity.

1. Use Technology to Your Advantage

Though tracking productivity was once a difficult task as data was recorded by hand, leaving significant room for error, technology has since advanced for businesses to implement into their day-to-day processes. Technology allows your company access to labor productivity so that warehouse managers, supervisors, and other employees can analyze the data and make decisions that will improve productivity in real-time.

2. Identify the Cause of Disruption

There can be a multitude of reasons your production is delayed; lost time adds up and it can be difficult to get your employees on the same page. Determining the leading cause of disruption in your supply chain, whether employees are clocking in late often, your overall processes are not working as they should, or your employees are not using their skills to their fullest potential. Having a clear idea on what is causing the wasted time in your facility will help your business improve your production, labor, and increase your overall bottom line.

3. Set Goals for Your Employees

When it comes to production, the processes rarely change and if they do it is very subtle. Once your company finishes one project the next begins, forcing your employees to start the same process over again which can lead to lack of motivation. One way to increase labor productivity is to set realistic goals for your team and offer performance-based incentives to help increase productivity and morale.

4. Communicate Effectively

One of the most productive workforces is clear communication, both from management and other employees. Though email is one way to communicate with your team, it can be inefficient as it takes time to sit down, check your email, and respond. Having a good stream of communication with your team via email or teams in one message can greatly increase your productivity as your updates and directions will be in one place and your team will all be on the same page.

5. Match the Right Jobs to Skills

Typically, production in your warehouse is the same throughout each day, however, employee skills and behaviors differ from one another which is essential when trying to maximize efficiency. For example, one employee who is meticulous and careful may have a difficult time succeeding at a task that is time sensitive. Taking the time to assess your current staff to determine which employee is suited for a particular job will help you with your labor productivity in the long run.

Determining how to increase labor productivity in your business can be daunting. As a business owner you must decide what practices work best for your company and employees. At NewStream, we understand the difficulty that comes with trying to increase your labor productivity, our team of experts are equipped with the knowledge and expertise to handle your details and help you win with your employees.

Ready to increase your labor productivity? Let’s talk, our experts are ready to help!