How Improving Team Performance Can Boost Your Business Profit Margin
How Improving Team Performance
Can Boost Your Business Profit Margin
Profit margins in your business can reflect how effectively your team is performing. For all businesses, no matter the size, there is a direct correlation between productivity & profitability. Just as you put oil in a machine for it to work effectively, how you manage your workforce can impact your bottom line. So, if you are looking to boost your profits, let’s look at ways that you can do this from within your organisation.
Productivity: The Underlying Current of Profitability
The concept is straightforward: higher productivity leads to bigger profits for a business. Businesses that thrive not only focus on a financial strategy, but also on the efficiency of output vs input. Your team needs to be working at optimum levels to ensure that you get maximum output throughout the working day.
The equation is simple: if your team's productivity levels are soaring, profits will follow.
But with the impact of increased number of sick days, and rising long term absence [Link]
[Link] these worrying statistics show us that employees are not happy and underscore challenges being faced by business owners today.
It’s clear that companies need a strategy to absence-proof their business.
Cultivating a Thriving Business Culture
The cornerstone of a thriving business is its culture. A culture that not only promotes creativity, but also values each member's contributions, lays the foundation for success. When employees feel valued and connected to your brand's vision, they are motivated to invest more effort into its growth. By fostering an environment where creativity and innovation are celebrated, you empower your workforce to tap into the wealth of their experience, sharing transformative ideas that drive your business forward.
If you feel valued - you do more.
The Exit Door: Poor Managers Drive Away Top Talent
It’s a well-known fact that people will leave bad managers, not bad companies. In fact, 28% [Link: ]
of workers have left their jobs for this reason. Your managers might be excellent at business development and understanding the company but not everyone knows how to manage a team, so it is worth looking at training your team to boost productivity.
Do your managers know where to signpost if a mental health issue is identified?
Are your managers well supported by you?
If morale dips, it isn’t just productivity that is impacted; the cascading effect on profitability is tangible, influencing your success metrics and, eventually, your earnings.
Supporting Team Performance to Boost Performance
How invested are you in your team's growth? Upskilling, training, and personal development plans aren't just HR jargon; they are the scaffolds on which future company leaders stand.
While businesses often tunnel-vision on end results, the underlying strategy should focus on and nurture comprehensive employee support.
- Clear Job Descriptions
Start with a detailed job outline. This should not only encompass an employee's day-to-day responsibilities but should also draw connections to broader company objectives and the overarching vision. A personal development plan for each team member strengthens future succession and company sustainability.
- Invest in your Workforce
Is your business actively investing in its human assets? Regular training sessions, upskilling areas that have been identified as skill gaps, and personal development plans aren't just beneficial for employees—they're crucial for the company's long term sustainability.
- Constant Conversations
Annual reviews are no longer an effective tool for managing performance. You need to be having (and welcome) open and frank discussions, encouraging an employee voice and learning from feedback.
Managers should maintain dialogue channels with their teams. Regular one-on-one sessions for individuals, and team meetings with clear communication of key performance indicators (kpi’s), can significantly boost team morale. People need recognition, rewards, and avenues for feedback.
- Wellbeing
This isn’t just a buzzword. Are managers trained to recognise signs of stress, work overload and burnout, and provide the necessary support?
With statistics revealing an average of 18.6 days of annual staff absence due to stress and anxiety, this highlights the essential requirement to take not only the mental and physical well-being of your team into consideration, but workplace environment, financial and social well-being too. Establishing a clear policy for employees to discuss any concerns is critical.
Managers also need signposting knowledge in order to consider external factors that could affect an employee's mental state. This includes their home life, past life experiences (such as PTSD), family dynamics (caring responsibilities), and societal pressures like the festive seasons or major sporting events, which may exacerbate personal issues such as domestic violence.
Teamwork Makes the Dream Work
As you can see, a cohesive and well supported team is intrinsically linked to your business goals and ultimate success. Building on the team's success will enable and empower a team to work together in creative, inspirational, innovative, and collaborative ways. By fostering a united environment that elevates staff well-being and an inclusive sense of belonging - potential challenges are promptly addressed, training needs are met and skills gaps are bridged, ensuring that you retain valuable staff members, and your top line turnover grows.
If you are looking for ways to boost your team performance and identify key areas needed to ensure optimum team performance, book your free 1hr consultation HERE
