Majority of SMEs ‘are suffering from productivity problems’
MORE THAN three-quarters of Yorkshire’s SMES (small-and-medium-sized enterprises) claim to be suffering from productivity problems, according to new research.
However, smaller businesses in the region report that they are more productive than their counterparts in many other areas of the UK.
In London, for example, 93 per cent of SMEs reported a productivity problem, according to the study by Opus Energy. The survey found 78 per cent of Yorkshire SMEs suffered from productivity issues, which is lower than the UK-wide figure of 86 per cent.
It follows the publication of CYBG’s quarterly SME Health Check Index for Yorkshire and the Humber, which fell by four points to 37 in the last quarter of 2017, although it was the only region outside London to witness an upturn in confidence during those three months.
Nikki Flanders, Opus Energy’s chief operating officer, commented: “It’s a wake-up call to hear that 86 per cent of SMEs across the country are struggling with productivity. We need to think of different ways to engage with and energise our teams – we all know that our businesses are nothing without them. We need to consider reward and development opportunities in the broadest sense to boost our employee offering.”
Ms Flanders urged small and medium-sized businesses to learn from each other and share best practices.
She added: “People are happiest when working in a role that suits them and their talents.
“It’s undeniable that certain areas of the country are hotspots for certain skills, and so businesses need to look at what core skills they need, and where they are in abundance. By being strategic about choosing your company location, you help build a platform of success for your teams.”