6 Ways to Increase Work Performance and Widen Profit Margins

According to Harvard Business Review, while high-pressure, cut-throat companies can increase employee performance levels, it does come with high costs. Harvard Business Review goes on to state that these high-pressure organizations’ healthcare costs are almost 50% greater than other companies. What this shows is that high performance in a stressful environment comes with a price and that organizations can, in fact, have high performance in a low-stress environment, which will not only improve work performance but widen profit margins. This is but one way to increase performance and profits. Read on to learn 6 more, plus why you should conduct a business names availability search.

1. Performance Reviews

According to Chron, giving consistent performance reviews to employees is an integral part in boosting work performance. When you do give performance reviews, make sure that they are accurate, reflecting areas employees are excelling at as well as areas they need to work on. Especially when giving feedback on ways they can improve, list practical steps for them to take, as well as giving specific praise. In fact, according to CNN, the ratio of complements to criticism is 6 to 1. CNN goes so far to state that the best-performing teams use this ratio while the worst only have a ratio of 3 complements for every criticism. At the end of the day, err on the side of complements infused with one or two constructive critiques.

2. Track Your Time

Inc. states that many employees don’t have a good grasp on time estimation. Meaning, that 2-hour report most likely will take 4 hours (or longer). Also, it helps to know that the average employee spends roughly 3 hours out of an 8-hour workday on work (with social media, reading the news, making a drink, etc. making up the rest of it). To help employees track their time, we recommend using the Pomodoro Technique. This method breaks up an employee’s workday in 25-minute increments. Employees work for 25 minutes straight. Once the timer is up, they take a break for 5 minutes, and then return back to work for another 25 minutes. After 4 rounds of this, the employee then takes a 15-minute break. By scheduling breaks, employees will waste less time and get more done, which means more productivity and profit for the company.

3. Make a Plan (And Stick to It)

It is important to have goals (and stick to them). Make sure they are obvious, and are broken down into reasonable steps. Track your progress by re-evaluating your goals on a weekly basis. Perhaps schedule in a set time to go over your goals to ensure that they are met? Also, know that the goals may change, which is why consistent re-evaluation is necessary for companies.

4. Incentivize, Incentivize, Incentivize

According to The Balance, pick your top 3 most important things (MITs) for the day. As the name sounds, these are the tasks you prioritize the most. Instead of picking the MITs that day, make an effort to set aside the last 15 minutes of the day to plan for your MITs for the following day. That way, you come into the office knowing exactly what you need to get done without wasting any time.

5. Do Not Multitask

Stanford research claims that multitaskers have less attention than those who have a “streamlined workflow.” This makes sense, given that multitasking puts more stress on the brain; it takes more work to shift from one task to another to back to the original task. Nonetheless, according to a study, 2.5% of individuals can multitask. If you happen to be one of those 2.5% lucky for you; for the rest, consider engaging in mindfulness and focus on one task at a time. Doing so will up your productivity, getting more done and increasing revenue.

6. Maintain a Healthy Sleep Routine

Fatigue not only decreases creativity but productivity levels as well. In order for employees to be at the top of their game, it is important to have a regular sleep routine in place—not to mention regular work, play, and rest times. That way, your body can keep a stable circadian rhythm. According to the Sleep Foundation, adults need 7-8 hours of sleep. (It is important to factor in age and lifestyle.) Having less will wreak havoc on your body while actually sleeping more—otherwise known as oversleeping—can have an equally detrimental effect. At the end of the day, keep a solid sleep routine of 7-8 hours to maintain high productivity levels.

Bonus: Who You Work Next to Matters

Harvard Business Review (HBR) indicates that who you sit next to has an effect on your work performance. And, it isn’t just the employee who sits adjacent; factor in the employee who is 25 feet away and 50 feet away. The study revealed that there was a 10% spillover, meaning a high-performing employee would boost an employee who may not have been performing as well. Consequently, the opposite would happen, where a low-performing employee would decrease the productivity of his/her high-performing co-worker. What HBR did highlight is that employees that have opposite strengths do well together. So, that employee who goes into detail on projects but procrastinates may do well sitting next to an employee who consistently manages work but doesn’t go as in depth.

Final Thoughts

Having a highly competitive work environment is not the solution to increasing productivity and widening profit margins. If anything, it increases stress. To boost employee productivity, encourage employees to invest in their health (which may even reduce the amount of health care services used). Also, employees should use time-tracking methods—such as the Pomodoro Technique—to ensure that they make the most of work. Plus, encouraging employees to choose and prioritize their MITs and routinely check their progress in meeting goals will increase the likelihood of boosting productivity and profits.

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