How to increase profit per employee up to 59%
Statistics show that in most domestic companies only 25% of the efforts of employees bring results, and the remaining 75% are useless. How to increase labor productivity in your company – says Vasily Pigin
According to the statements of the RAS and the Ministry of Economic Development, the labor productivity of Russians is very low and they are fatally incapable of group work. Is it so? Statistics say that in most domestic companies, only 25% of the efforts of workers bring results, and the remaining 75% are useless. It turns out that most of the personnel’s actions are not only not productive, but often do harm: breakdowns, shortages, marriage, downtime, loss of customers. And the employer pays for all this. The situation in other countries is much better. But the leading economies are not so rosy. More than 700 top managers of the largest companies in the world participating in the Conference Board study named low productivity among the most serious business development problems.
It is not surprising that in many countries, including Russia, they are looking for ways to improve business performance. Domestic realities are characterized by a paradigm that minimizes risks from the human factor. Everyone is striving to implement CRM, automate customer service, and standardize business processes. This is understandable: the losses from low productivity of employees are too high.
The now popular KPI system should solve the problem of motivation, develop a fair system for evaluating the actions of employees and provide information for making informed decisions. But in most cases it does not work. The problem is much deeper than it seems, and it cannot be solved with dry numbers. Business optimization tools give results where there is such an organizational culture in which they maximize the potential of employees.
A classic example is Toyota, where labor productivity is one of the highest in the world. This is explained by the fact that the company’s philosophy is primarily aimed at creating a set of factors under which employees work better. A person is selected for the position who, in principle, is capable of completing this task, he understands the goal – why is he doing this work within the company and for himself personally, and also has the support of management. Therefore, Toyota says: “Before we create cars, we create people.”
So what determines the productivity of personnel and how to increase it? It may seem paradoxical, but human performance is largely dependent on the biochemical reactions that occur in the brain.
Neurobiological surveys conducted by Paul Zack, the founding director of the Center for Neuroeconomic Research, have revealed that an atmosphere of trust and joy from work stimulates the production of oxytocin, which contributes to productive activities. The question arises: how to increase the production of hormones that contribute to increased performance?
A person performs most actions “on the machine”. We say, walk, eat, open doors, type on the keyboard at the level of reflexes, that is, at this moment the brain is not in active thinking mode. “Turning on the brain” is a very energy-intensive process that requires 16 times more energy than with muscle efforts per unit mass.
This suggests that when performing operations characteristic of his psychological personality style, a person is more productive than with actions unusual for him. When you need to connect additional reserves, a person at least does the work more slowly.
For example, if an employee is an extrovert, and his functional duties are associated with perseverance, attentiveness and do not involve communication with other people, he will have to spend much more effort on the work than an introvert. He will not work “on the machine”, he will “squeeze” from himself those abilities that are required to perform functions.
And vice versa: if the introvert is entrusted with work related to communication or direct sales, although he will try, productivity will only fall, in the end the person will burn out. This will not benefit either the company or the employee.
When a person is not in his place, he daily has to suppress natural behavioral reflexes, “break himself”, which provokes stress, which inhibits the production of oxytocin. Therefore, people in a state of stress cannot work normally, demonstrate low results, cannot cooperate with team members, make mistakes.
In other words, in order to achieve maximum productivity, it is necessary to create such conditions that the employee is engaged in something that does not contradict his internal “I” – the natural style of behavior and motivators – the root beliefs of the person.
How to recognize a person’s personality, highlight his strengths and weaknesses, the way he interacts in a team, his predisposition to a particular activity?