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How productivity impacts your company’s revenue

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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 seek the answer to 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 smart work.

employee productivity measurement

Marginalised Pricing

A business owner always has to be very careful while allocating his resources to different departments, which is 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 is giving 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 and every department. And if your employees are honest in their work and improve their productivity, then your human capital is optimised.

Optimise Your Workforce

employee tracking software -

Concept Of Satiety

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

In a business where several resources are working together, it is essential to check which resource is effectively working 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, especially after COVID19 smashed our economies.

Restore The Equilibrium

Another amazing 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 to increase its revenue.

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

employee productivity

How productivity impacts your company’s revenue

We saw all the revenue strategies that will help your company to increase its revenue, but only if you noticed one thing was constant in all the four strategies that were “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 from seeking returns, but you should know who is an asset and who is a liability. And here Employee Monitoring Software steps in, you can actually judge who is an asset and who is a liability by tracking your 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. helps you block unproductive domains that might distract or tempt your employees to waste their 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. 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 easier. Employee Monitoring Software helps you to optimise your workspace both a poffisional and personal lever. So, see your productivity and revenue graph increasing with

Written by: Tanvi Kaushik

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