Productivity Benchmarking – Do You Measure Up?

Posted on: 19 , July 2018

The office of National Statistics (ONS) has developed an online tool that aids businesses to calculate their productivity and compare their performance to other businesses in Great Britain.

Productivity is a measure of the amount of output a business produces for a unit of input. In its simplest form, labour productivity measures the amount of output produced per worker: higher productivity means that a business produces more output for each worker it employs.

Productivity is important because it is a key determinant of living standards in the long term. Growing productivity over time means businesses can produce more goods and services per unit of input (labour, capital and others), permitting higher wages, supporting economic growth, holding back inflation and increasing tax revenues, in turn making it easier for government to provide essential services.

To help businesses better understand their productivity, and how they compare to other businesses, the ONS has launched an interactive productivity benchmarking tool. This will let you calculate the productivity of your own business over time; and compare your productivity performance to other businesses in your industry. You only need three pieces of information: your turnover (or sales), your purchases of inputs (excluding investment), and how many people you employ.

So, how do you measure up? If you’re looking to improve productivity, Boost has a range of business support programmes to help you. Start the growth conversation with Boost today by calling 0800 488 0057 or complete our contact form and one of our business advisors will contact you.

To read the original article, please visit https://goo.gl/s7L93C