Productivity: from stagnation to success

Tom Martin at Kinly explains how UK businesses can turn the productivity tide

 

UK productivity has stalled according to the Office for National Statistics (ONS), and business leaders are feeling the pressure. While other major economies have recovered from post-pandemic workforce shrinkage, Britain is still lagging behind.

 

Given this, it’s hardly surprising that Kinly’s recent report — Trusted Connections 2025 — found that nearly half (41%) of UK businesses have made employee productivity their top priority.

 

Recognising the problem is, of course, an important first step in solving the crisis. But the report — based on a survey 425 AV professionals across the public and private sectors in the UK and Europe — makes one thing abundantly clear: businesses aren’t struggling from a lack of effort, but rather that the effort is being misdirected. 

 

 

Tech is holding workers back

With hybrid work now firmly established, having reliable, high-quality communication tools are no longer just a perk — they’re essential for keeping teams, connected and productive, while enabling businesses to moving forward. 

 

The snag is that these technologies have become so ubiquitous that they’re often taken for granted and easily overlooked when it comes to allocating resources.

 

As a result, many employees are still working with outdated systems and inefficient workflows that act as a brake on their work life. AV and collaboration tools should be empowering workers. And yet, the reality is that clunky legacy technology has become a major source of frustration, ultimately harming efficiency.

 

In fact, the report found that less than a third (31%) of UK organisations are actively replacing legacy AV tech. This is despite nearly two-thirds (62%) recognising that outdated AV technology is damaging productivity in hybrid environments. 

 

This highlights a clear disconnect between what businesses know to be hurting their bottom line and their investment priorities. Without serious commitment to modern infrastructure, UK businesses risk falling even further behind, especially in an era where efficiency and agility are key.

 

 

The cost of budget cuts to productivity

Cutting costs remains a dominant theme in UK boardrooms – which under the current economic climate, isn’t surprising. But there’s a problem. Making smaller investments to save money may provide a short-term fix, but it often creates long-term damage.

 

The issue is already playing out in UK businesses. More than half (55%) of UK enterprises are operating with reduced budgets in 2025. While businesses look to keep a lid on costs, this lack of investment is damaging employee efficiency and morale. Even more concerning, the full impact of failing to invest isn’t always immediately visible. 

 

One major consequence is employee wellbeing. It’s widely understood that happier, healthier employees are also more productive. However, forcing staff to do more with less doesn’t just hamper their ability to perform, it also demotivates them and fuels frustration. Kinly’s survey found that only a quarter (26%) of UK businesses are prioritising employee wellbeing, falling behind the European average of 29% and significantly behind countries like the Nordics (38%). 

 

Taken together, these statistics paint a concerning picture. UK businesses understand the gravity of the nationwide productivity crisis – but they don’t always seem to acknowledge the solutions.

 

The reality is that increasing employee output goes hand in hand with supporting their wellbeing. UK organisations that follow the lead of their European counterparts are far more likely to see real improvements in engagement, efficiency, and long-term growth.

 

So, where does that leave us?

 

 

Smarter investment delivers real productivity gains 

UK businesses need to shift away from short-term cost-cutting and, instead, embrace long-term value creation. The focus should be on meaningful digital transformation, ensuring that new technology is properly integrated and genuinely improves workflows, while keeping employee needs at the core

 

This means adopting a balanced budgeting approach that recognises that cutting investment in technology and employee support now will only lead to greater costs in the long run. 

 

Why? Because communication tools aren’t just about ‘communicating’ — they drive engagement, efficiency and collaboration. Businesses that integrate intelligent AV workflows are already seeing tangible benefits, from faster decision-making through real-time collaboration to increased employee engagement with immersive, intuitive technology. 

 

But to truly unlock these advantages, businesses must take a strategic approach, ensuring that technology works seamlessly across hybrid and in-office setups, rather than implementing them in a fragmented, piecemeal manner.

 

The challenge is no longer just about adopting new tools — it is about using them effectively. Businesses that invest wisely in their communication technology will find that it does far more than connect people — it transforms how they work.

 

As I said at the outset, solving the productivity crisis is not an easy task. It requires a multi-faceted approach that could take years to resolve.

 

And yet, one of the most immediate and impactful steps companies can take is to empower their employees — not by squeezing more out of them but by giving them the tools, resources, and support to enable them to thrive. 

 

---

 

Tom Martin is CEO at Kinly

 

Main image courtesy of iStockPhoto.com and SeizaVisuals