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How productivity impacts your company’s revenue


December 18, 2021

Economists state that revenue is the number of units sold amplified by the average cost. This basic economics formula acts as an analysis, but sadly, laws do not help you expand your businesses. But, we stand with a question: how productivity impacts a company’s revenue? To answer the question, we first have to go through some revenue strategies that most businesses follow. Some of the most effective revenue strategies are viz. These are just a set of rules that will help you seek insights, but what will help you expand your business is blending your revenue strategies with hard work and intelligent work.

Employee Productivity Measurement-We360.ai

Marginalised Pricing

A business owner always has to be very careful while allocating resources to different departments, called Marginalised Pricing. Business empires are built or ruined by this strategy. When a business owner analyses his monthly revenue, he can see which department gives him returns and which is a long-run liability.

Optimum Utilisation of Resources

The Modernist School of Economics gave a concept of Optimising your resources to help your business flourish. Optimising your resources might sound like quite a lot of work, but it is easy when you are tracking your employees in each department. And if your employees are honest in their work and improve their productivity, then your human capital is optimised.

Concept Of Satiety

The concept states there is a line of satiety, and every resource should be on that line to keep your business wholly optimised. And the resources that care under the satiety line should be eliminated or checked. Some of the resources might exceed the line of satiety, which means that resources are functioning correctly and are running ahead of their targets.

In a business where several resources are working together, it is essential to check which resource effectively works and which is not. Because malfunctioning of resources can lead to long term losses. 40% of businesses do not keep a check on their resources, which might be one reason why 3 out of every 5 businesses are going bankrupt, wildly after COVID19 smashed our economies.

Restore The Equilibrium

Another fantastic concept given by Modern Economist states that a business should always run on equilibrium. Restoring the equilibrium means equalising the assets with liabilities and profits with expenses. However, in the 21st century restoring the equilibrium is unrealistic because of the rising inflation and the non-variable cost. But individual departments in a business can restore their equilibrium. The company will continue to function in a non-equal zone. Still, all the resources can equalise their profits and expenses, which will indirectly help the company increase its revenue.

For instance, your human capital is supposed to work eight hours a day, and each employee is working effectively without wasting the company’s time and money. Then, your company’s human capital will restore its equilibrium over time. And it would be a Win-Win for everyone.

Employee Productivity-We360.ai

How productivity impacts your company's revenue

We saw all the revenue strategies that will help your company increase its revenue, but only if you noticed one thing was constant in all the four strategies: "Productivity of all the resources." So, we come back to our question of how productivity impacts your company's revenue, and this is how:

Profits Over Loss

Your business is a Profit and Loss Equation.

According to Marginalised pricing and the Optimum Utilisation of Resources, one should always invest by seeking returns, but you should know who is an asset and liability. And here, Employee Monitoring Software steps in. You can judge who is an asset and liability by tracking your employees.We360.ai acts employees productivity tool. You can seek information on your employee's productivity percentage, which will make it easy for you to judge who is gaining profits and who is at a loss.

Then according to the strategies mentioned above, you can allocate your resources to a functioning asset or find a way to push your resources to satiety.

Optimise Your Human Capital

Grow Through What You Go Through

You can optimise your human capital by helping them through their rough patches. We360.ai helps you block unproductive domains that might distract or tempt your employees to waste time. You can help them stay focused on their work. It would be a Win-Win for everyone.

Profitable Organisation Will Benefit All

Your Organisation Is A Family

You do not require any strategy to understand that your organisation is not a team. It's a family. We360.ai acts as a bridge of communication between the employer and the employees, strengthening employee and employer relationships.

Improve your company's revenue by making your employees productive meanwhile making working more accessible. Employee Monitoring Software helps you optimise your workspace both a professional and personal lever. So, see your productivity and revenue graph increasing with We360.ai.


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