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Boost your business productivity in 5 easy steps

Dr Biz • Aug 06, 2020

Singaporeans are famously content. Since independence in 1965, the country has seen consistently strong wage growth, rising living standards and increasing life expectancy, Indeed, today Singapore boasts the fourth highest adjusted GDP per capita in the world, just behind Luxembourg. Along with many other developed nations, however, Singapore has – admittedly – faced somewhat of a productivity problem in recent years.

According to the Department of Statistics Singapore, the growth in value added per worker in the country has been in steady decline since the fourth quarter of 2018, shrinking -2.1 percent last quarter. This was the steepest fall since the financial crisis of 2008. Meanwhile, real value-added per actual hour worked declined by -1.5 percent, the first negative reading since the series began in 2010.

While recent figures reflect the huge impact that the Covid-19 pandemic is having on every country in the world, Singapore’s businesses have been struggling to consistently boost productivity since at least 2013. All is not lost, though. With strong and growing support from the Government, many companies now have a big opportunity to boost operations in the post-Covid era. Below we highlight some of the best ways to boost productivity and spur growth in your business.

1. Focus on cultural change

Companies, like people, can get a little set in their ways. After perhaps decades of proven experience, implementing change can be tricky. That’s why management consultancy Oliver Wyman recommends embedding cultural change as a first step to boosting productivity. The firm says companies should first become aware of new modes of behaviour and the need to change, closely monitoring competitors for a lead and then leading educational sessions with staff.

After this, businesses should focus on implementing changes slowly and steadily, reinforcing the positive aspects of change. This might include action learning seminars, live feedback sessions and leadership coaching over the first crucial three months of implementation. Following that, the focus should be on sustaining change and, perhaps most importantly, measuring the positive impact it is having on your staff and business.

2. Use time saving tools

Anyone that has run a business knows how time consuming administration can be. From HR, to payroll, to accounting: these essential tasks not only take a lot of time, but can also slow recruitment and onboarding processes, both of which are crucial to maintaining high productivity. To remedy this, businesses can consider one of the many online tools that now exist to help companies manage and streamline these processes.

At Dr Biz, we support Xero: a fully integrated, online accounting software that allows clients to monitor payments, invoices and even log expenses digitally. When linked with professional accountancy services, this can give business owners more time to focus on growing their businesses. Smooth HR and payroll services can also save time, but, more importantly, they can lead to increasingly satisfied - and so more productive - employees.

3. Reach for the cloud

Digitalisation is an important part of increasing productivity, and one of the first actions a business can take is to move their internal IT systems onto the cloud. This can be particularly effective for resource-tight SMEs, as it frees them-up from maintaining costly servers and software programmes, while also helping to streamline supply and product lines, again cutting unnecessary costs.

Cloud-based IT systems can also help managers and staff to communicate more effectively with each other: an essential component of a harmonious, productive team. Moreover, easy access to data on business operations will allow key decision makers to make those all-important decisions much faster, and with more information to base them on. Combined, the benefits of cloud computing lead to reduced costs and increased productivity.

4. Automate and reorganise

Labour intensive processes should be the first that any business targets when it comes to increasing productivity. For more than ten years, for example, Aljunied-based Thai grocer Siam Coconut Pte Ltd. hand-wrapped all of the coconuts the company stored in its warehouse. However, in 2016 the company automated this process, cutting the number of staff needed to perform this task from five to two.

Rather than lose those employees, though, the canny grocer retrained and redistributed them to the marketing department, aiming to help the company to reach new customers and grow. This provides a valuable model for how Singapore’s smaller businesses can reorganise themselves to seize new technological opportunities, while maintaining and even enhancing the capabilities of their existing members of staff.

5. Productivity says: relax!

Introducing new processes can be exciting, but it’s important not to get too carried away. When implementing a big culture change, for example, monitoring success through training and feedback sessions is important; however keeping too-close-tabs on staff is likely to make them feel you don’t trust or value them. The same goes for asking staff to complete lengthy timesheets or expense claims. This often breeds resentment and, in turn, can lead to a drop-off in productivity.

Instead of micromanaging every process, focus instead on fostering a stronger community spirit among your staff. Even for those companies focussing on cutting costs, organising the occasional team building day at a fun venue can pay for itself several times over through stronger bonds between staff and goodwill towards the company. Remember: happy workers make loyal and productive workers!

At Dr Biz, we provide tailored and comprehensive solutions for our client's business needs. From incorporation to accountancy, tax and payroll, to professional advisory services, we help businesses in Singapore assess potential risks and become more cost effective and efficient.

To find out more, please feel free to contact us.

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