Productivity is the gift that staff keep on giving if you lead them right

Right now, Europe’s economy is progressing at the pace of a tractor that’s clogging up the streets of Paris and threatening to use all of its reverse gears. German car workers cost nearly double that of their counterparts in China who are now churning out nearly 60% of all electric vehicles. France’s GDP will grow by juste un petit peu in 2025, about a quarter the rate of the US. And although the Brits hoped that Brexit would be the gateway to an economy on a par with the other western European countries that aren’t in the EU, the latest figures show that, like an old man, the UK either hasn’t grown or has shrunk for four out of the last five months.

Companies can downsize their workforce but, ultimately, countries cannot. In fact the EU grew by 1.6m people in 2023. So the only way out is up – by upping productivity. Germany remains hellbent on throwing more money at its car workers than anywhere else in the world. The French still want to retire years earlier than their major competitors. The UK wants to continue flying solo despite its recent track record of swerving to hit every bird strike within range.

Everyone’s going to have to do more with less.

And that includes the big guns. Trump’s threat of 60% tariffs will materially affect 3% of China’s GDP - the flipside of which is that American workers will need to up their game inside Fortress USA if they’re going to make America competitive again.

So what’s the fastest way to drive productivity? Agile? Lean Sigma? Multi-disciplinary teams? Change Management? Well, they are all approaches that are proven to work well.

But nothing makes people work better than better leadership.

Sure, you can dictate and micro-manage productivity gains out of people, but not for long. Eventually they’ll either leave, or worse, stay and go toxic. If you’re serious about long term gains though, you need staff who are prepared to give you their discretionary effort, and for that, you need them onside. And the best way to do that is no surprise.

According to Gallup, managers account for over 70% of the variation in employee engagement.

To put that in context, just think about how many different ways there are to engage – and disengage – staff. And the manager holds the key to over 70% of that. What that means is that it doesn’t matter what shiny tools and techniques you force down their throats. If they’re not engaged, they won’t swallow it.

If you’re a driven leader who celebrates Christmas but finds it hard to switch off, you wouldn't be the first to think about how great it would be if you could get your people to make stuff as fast as the elves and deliver it as fast as Santa. Of course, the laws of physics prevent such performance in the real world, but high levels of engagement are absolutely possible. And when they’re achieved, high levels of productivity become a racing certainty. And a study proved just that, showing that ‘great’ leaders (from 360 feedback) delivered double the incomed of ‘good’ leaders. Still not a patch on Santa admittedly, but anywhere south of the North Pole and outside of Christmas Eve, that’s a result you’d take any day of the year.

If productivity is the red thread on your agenda, take a look at where you’re spending most of your dollars. If salary is your biggest drain on cashflow, think about how much more bang for those bucks you could get from your people being better led.

Happy Holidays everyone, and thanks so much for your support this year! The office is closed From Monday 23rd December – Monday 6th January. I look forward to connecting with you again in 2025, which I hope will be a highly engaging and productive year for you all!

Rich Alderton specialises in profitability through Leadership Development and Adaptability Intelligence, so why not call us on 07873 823 800, email us or complete our enquiry form to find out more?