Much has been written around the subject of maximising worker productivity but have companies focused on implementing initiatives that may be counterproductive?
One of the key trends we have noticed is the increase in companies offering more flexibility in working hours, one of these being the implementation of early finish on Fridays for their staff.
Employees are generally the largest individual cost line for companies within their profit and loss statement; service industries’ employment costs regularly account for 50%+ of their revenue. Now this ratio will vary by industry, but there is no doubt, employees are an expensive necessity to any company. The key, therefore, is for companies to find ways to ensure they are ‘getting the most’ from their employees.
Research has found that worker productivity is at its highest on Monday and decreases throughout the week. In addition, the same trend is reflected when applied to hours in the day; the morning is the most productive time, decreasing as the day progresses. By looking at these two trends together, it would seem that Friday afternoon is the least productive time of the week.
Another interesting finding comes from Hudson, who performed a detailed employee productivity investigation on behalf of British Airways. They were actually able to pinpoint the time when employees’ output ‘fell off the cliff’. This time was exactly 2.39pm.
So what are the benefits of offering employees early finish Fridays or Summer Fridays (this is when companies allow employees to leave early during the summer months)?
- It enhances the Employee Value Proposition (EVP) as every human being values free time, especially when it may allow them to: miss their rush hour commute; enjoy more of the evening with family and friends; enjoy the sunshine; and bond with their fellow workers as ‘after work’ drinks do not require a trade off against other commitments. An Absolute Vodka study revealed 87% of those who had summer hours, said this benefit contributed to a healthy work/life balance. 76% agreed Summer Friday policies were an effective tool to boost productivity.
- It creates a differential advantage for a company against those who do not offer such a benefit.
- If workers make up the time by coming in ½ hour earlier each day, you are maximising their productivity.
Now this doesn’t mean employers should shut down their offices at 2.39pm each Friday. There are many different approaches taken by companies who recognise this Friday afternoon slump. Some organise Friday afternoon drinks to improve team bonding, some adjust the early leave time to 4pm each Friday but then, on the last weekend of the month when people are paid, adjust this to 2pm.
There are no hard and fast rules, but if you want to maximise employee productivity, why not provide them with a benefit they will value, that could improve your company culture, differentiate you from competitors, while adding no cost? The question is when you can implement this initiative rather than if you should.
To find out how Innecto can help with any aspect of pay and reward, get in touch: 020 3457 0894
