The Effects Of Low Productivity On Business Growth

When people start businesses, they are often focused on just a single outcome: Growth. Getting to the “growth” period of a business’s life takes dedicated employees and a high-productivity work environment. Most business owners understand how high output can affect a company, but few stop to consider the various detriments low productivity may bring. If a business wants to scale fast, it should lookout for signs of low efficiency. Here are the top effects of low productivity on business growth to look out for, especially in the early stages of a business’s life.

Low Morale

Workers who are not motivated to do their jobs tend to have low morale. After all, if there’s no motivation to work hard, why should they work at all? Low morale can spread across teams and the company at large. This can create a hostile work environment that impacts a business’s ability to scale fast. In time, it will hamper a company’s ability to bring in skilled and motivated employees.

Lack of Creativity

A workplace with no motivation or team goals will lead to less innovation. A decreased or missing drive to innovate will significantly impact whether the business grows in size and revenue. Plus, a lack of innovation will affect the CX and the overall quality of deliverables.

Reduced Profitability

With decreased worker production comes less progress – and lower profitability. If employees are not motivated to work hard, their work will be subpar, which will impact the CX and whether clients and customers want to work with the business. Over time, this translates to less money flowing into the business. In some cases, it can damage a business’s reputation.

Underutilization of Employee Talents

People have surprising skills and talents. In an unproductive workplace or workforce, there are fewer reasons and opportunities to show off those talents. This may look like assigning mundane administrative tasks to a high-energy worker, or it could look like neglecting to consider employee requests. Look to streamline more tedious workplace tasks, like administration, and highlight worker talents and interests in day-to-day operations.


Productive workers and well-defined team goals make business growth easy. When a workforce’s talents and creativity are appropriately utilized, everyone benefits. Business owners who begin to see signs of low morale or production should address issues as soon as possible. This is the only way to guarantee a business’s success over time.

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