Tips To Increase Productivity In Your Small Business

As a small business, you really do not have too much budget at your disposal to invest in infrastructure that can foster high productivity. However, thanks to the recent advances in technology, there are a number of tools that your small business may deploy to ensure that the productivity of your employees go up. This is important - according to various studies conducted on employee productivity, it has been found that the average employee spends 20 hours a week online with 5 hours being on non-work related stuff. The largest contributor to this workplace inefficiency is Facebook - an overwhelming 41% of time is wasted here.

However, it is not advisable to firewall your workplace. In a recently published book, employee engagement consultant Adrian Gostick claims that a happy workplace is extremely crucial to improve productivity. In the absence of social networking at work, this productivity can go down. So the way forward should be in drawing that fine line between keeping employees happy and letting them enjoy their “me time” at work. Here are some tips to bring about this balance:

RescueTime

RescueTime is a simple software that monitors the activities on your computer. Installed on your employees’ desks, it tells you the amount of time each one of them spend on their Facebooks, Twitter and work. One business I know collects the data from all their employees on a weekly basis and creates a leaderboard of people who spend the most time working. Without judging employees for the time they spend on social networks, a leaderboard of this sort is a great way to push your employees into spending their time at work in a more productive way.

Migrate to an ERP

If your business is still making use of excel sheets and paper invoices to handle your resources, then it is high time you moved to an ERP system. An ERP system drastically improves the productivity of your employees. In a traditional setup, employees spend hours every month talking to various teams over disagreements on invoices, finances and purchasing requirements.

With an ERP system, all of this data is automatically updated to each system which ensures your employees have more time on their hands to do productive work. Also, the modern ERP systems are on the cloud - applications like NetSuite are hosted remotely by partner companies who provide ERP solutions to customers over the internet. These NetSuite partners often charge you based on the number of users who will require access to the ERP system. For a small business, this is often on the lines of a few hundred dollars; which is definitely a worthy investment for increasing productivity of your organization.

Outsourcing

Unlike what the mainstream media would want you to believe, outsourcing is in fact a pretty smart move to help increase productivity of your organization. And this of course comes with a drop in expenditure. The key here is to look at outsourcing as a channel to increase productivity and not decreasing costs. Looking it this way helps you weed out cheap sweatshops that often bid low but are also notorious for their low quality work. Focusing on productivity improvement helps you find the right partner who can take all the non-core tasks away from you thus letting you focus only on the most important revenue generating activities.

Apart from RescueTime, the other two tips will require the owner to extensively research on your requirements and will cost time and money to arrive at the proper solution. But once you do this, you would ensure a high quality productive work environment for your employees.
 
As a small business, you really do not have too much budget at your disposal to invest in infrastructure that can foster high productivity. However, thanks to the recent advances in technology, there are a number of tools that your small business may deploy to ensure that the productivity of your employees go up. This is important - according to various studies conducted on employee productivity, it has been found that the average employee spends 20 hours a week online with 5 hours being on non-work related stuff. The largest contributor to this workplace inefficiency is Facebook - an overwhelming 41% of time is wasted here.

However, it is not advisable to firewall your workplace. In a recently published book, employee engagement consultant Adrian Gostick claims that a happy workplace is extremely crucial to improve productivity. In the absence of social networking at work, this productivity can go down. So the way forward should be in drawing that fine line between keeping employees happy and letting them enjoy their “me time” at work. Here are some tips to bring about this balance:

RescueTime

RescueTime is a simple software that monitors the activities on your computer. Installed on your employees’ desks, it tells you the amount of time each one of them spend on their Facebooks, Twitter and work. One business I know collects the data from all their employees on a weekly basis and creates a leaderboard of people who spend the most time working. Without judging employees for the time they spend on social networks, a leaderboard of this sort is a great way to push your employees into spending their time at work in a more productive way.

Migrate to an ERP

If your business is still making use of excel sheets and paper invoices to handle your resources, then it is high time you moved to an ERP system. An ERP system drastically improves the productivity of your employees. In a traditional setup, employees spend hours every month talking to various teams over disagreements on invoices, finances and purchasing requirements.

With an ERP system, all of this data is automatically updated to each system which ensures your employees have more time on their hands to do productive work. Also, the modern ERP systems are on the cloud - applications like NetSuite are hosted remotely by partner companies who provide ERP solutions to customers over the internet. These NetSuite partners often charge you based on the number of users who will require access to the ERP system. For a small business, this is often on the lines of a few hundred dollars; which is definitely a worthy investment for increasing productivity of your organization.

Outsourcing

Unlike what the mainstream media would want you to believe, outsourcing is in fact a pretty smart move to help increase productivity of your organization. And this of course comes with a drop in expenditure. The key here is to look at outsourcing as a channel to increase productivity and not decreasing costs. Looking it this way helps you weed out cheap sweatshops that often bid low but are also notorious for their low quality work. Focusing on productivity improvement helps you find the right partner who can take all the non-core tasks away from you thus letting you focus only on the most important revenue generating activities.

Apart from RescueTime, the other two tips will require the owner to extensively research on your requirements and will cost time and money to arrive at the proper solution. But once you do this, you would ensure a high quality productive work environment for your employees.
The article from January 2014 addresses the challenge small businesses face in boosting employee productivity with limited budgets, leveraging technological advancements to achieve this. It acknowledges that employees spend significant time on non-work-related internet activities (20 hours/week online, 5 hours non-work, 41% on Facebook) but advises against outright blocking social media due to its potential impact on employee happiness and overall productivity.

Here's a breakdown of the key strategies proposed:

  • Balancing Productivity and Employee Well-being: The article stresses the need to find a balance between maximizing work output and allowing employees "me time" to ensure a happy workplace, which is crucial for productivity.
  • RescueTime for Monitoring and Motivation:
    • Functionality: RescueTime is presented as a software that monitors computer activity, detailing time spent on work-related tasks versus social media (Facebook, Twitter).
    • Application: One suggested use is to collect this data weekly and create a leaderboard of top performers based on work time. This non-judgmental approach can motivate employees to use their time more productively.
  • Migrating to an ERP System:
    • Problem: Traditional methods like Excel sheets and paper invoices lead to significant time wastage due to disagreements and manual updates across various teams (invoices, finances, purchasing).
    • Solution: Implementing an Enterprise Resource Planning (ERP) system drastically improves productivity by automatically updating data across all systems. This frees up employees' time for more productive work.
    • Cloud-Based ERP: Modern ERP systems, like NetSuite, are often cloud-hosted, making them accessible over the internet. These services are typically priced per user, offering an affordable (a few hundred dollars for small businesses) yet worthy investment in productivity.
  • Strategic Outsourcing:
    • Reframe Outsourcing: The article argues that outsourcing should be viewed primarily as a channel to increase productivity, rather than just a cost-cutting measure.
    • Benefits: This perspective helps in selecting quality outsourcing partners who can handle non-core tasks, allowing the business to focus on crucial revenue-generating activities. This ultimately leads to increased productivity and a reduction in expenditure.
The article concludes by acknowledging that while RescueTime is relatively simple, implementing an ERP system or setting up strategic outsourcing requires extensive research, time, and financial investment. However, it asserts that these investments are worthwhile for ensuring a high-quality, productive work environment.
 
This article provides a grounded, insightful perspective on how small businesses can increase productivity without a massive budget. It emphasizes that productivity isn’t just about control—it’s about creating the right environment, using the right tools, and focusing on the right work.​
“Productivity isn’t about more hours—it’s about smarter tools, fewer distractions, and a workplace that empowers people to do their best work.”​
This balanced approach—blending technology, transparency, and trust—can help small business owners build a workplace culture that values efficiency without stifling employee well-being.​
 
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