Why productivity impacts talent retention

We have talked a lot in this blog about the importance of productivity so that a company can make better use of its available resources, increase its profitability and grow. But this competitive advantage has another benefit, which you may not be considering: retention of the best talent in the business .

Many factors come into play in the competitiveness of a company; for example, the quality of your products or services, the location of your stores or the positioning of your brand. But at some point, the competition may replicate those factors. By contrast, they can’t do the same with the insights of the most experienced salespeople, their contacts, or the creativity of the marketing team .

For this reason: never forget that the best talent in the company is one of the bases of its competitive advantage. But how to get him to stay with us? Of course, salary and compensation are a fundamental factor. But there is also the possibility of working on what one is passionate about, of growing within the company and a pleasant work environment. In these three points there is a key facilitator: productivity.

What is the relationship? It is simple, but again it is a fact that we often ignore. In a productive company, the possibility of working with ordered processes and obtaining good results and high levels of profitability allows workers:

  • Get better wages and compensation
  • Work in an orderly and conflict-free environment
  • Spend time on important tasks and not on those that can be automated
  • Avoid spending hours on paperwork and solving bureaucratic tasks
  • Being able to develop one’s own talent through increasingly important projects

And the benefits for the business?

On the company side, more specifically in the Human Resources area , the most important positive impact of productivity is the decrease in the staff turnover rate. This data becomes especially significant in the case of talent, which is usually scarce in the market.

Other tangible benefits of productivity for the business are:

  • The reduction of labor conflicts
  • A drop in the absenteeism rate
  • An increase in the generation of new ideas
  • Better communication between different areas or teams
  • The highest customer satisfaction
  • The natural attraction of new talent (due to the positive opinion of current employees about the company)

Now, the big question you have to ask yourself is, how to achieve that productivity? Of course, there are many factors to take into account; but, without a doubt, technology plays a very important role. For example, in the adoption of comprehensive payroll systems that make it possible to efficiently manage attendance and arrival records , as well as the calculation of Christmas bonuses , vacation pay , taxes, and social security contributions . In addition to the use of platforms that allow managing collaborative work projects, managing the relationship with customers and automating functions , such as inventory, when making the leap towards ae-commerce .

What remains for the Human Resources area ? First, understand the importance of productivity in a good work environment and talent retention. So, assuming an active participation in everything related to process improvements and communication within the company.

Secondly, HR managers have to constantly monitor the work environment , since this is where they can obtain valuable information about operational problems , internal conflicts and poor customer service ; in order to be able to communicate it to those responsible for areas such as Operations, Logistics or Customer Service so that they can implement the necessary adjustments in the processes.

In summary, productivity is a clear indicator of the efficiency of business owners when making use of their resources: and a key factor for the motivation and permanence of the best talent. Don’t forget to keep these lessons in mind!