INCREASING THE PROFITABILITY OF YOUR BUSINESS THROUGH HUMAN ADDED VALUE

What would a business be without its employees? It’s a concept that is almost impossible to conceive. Human resources are a major asset for every company, whether for its sustainability, growth or development. It is therefore essential, if not a priority, that employees are included in organizational change and in continuous improvement. Here at Synecdo, we believe that optimizing human added value is key to increasing the performance and productivity of organizations over the long run, no matter the industry.

When employees use their working hours to fulfill their job responsibilities, they create value for their business. The latter therefore has an interest in reducing any non-added value activity. This helps increase productivity by reducing wasted time in the day-to-day life of the organization.

Find out in this blog post how employees can be at the heart of continuous improvement!

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Human added value

In general, added value represents all the work done in a company, for which its customers agree to pay. This principle can be applied to employees with human added value. This is created when employees devote most of their working time in assuming responsibilities for which they have been hired.

Let us take a real life situation in order to illustrate this concept. When would a public sector physician create value for society? It’s when he heals and is in direct contact with his patients. Any other activity that does not support this responsibility should be considered “non-added value”. It’s precisely these operations that create losses, both of time and money, and which should be automated, even eliminated if possible.

Employees therefore create value when their work is directly related to their responsibilities and skills. Indeed, the production capacity of employees should in no case be determined solely by the number of activities performed each day: this performance indicator is only adequate for machines and technological tools.

Synecdo firmly believes that the quality of the work done by humans should be evaluated by its impact on the overall productivity of the organization. By giving an individual the opportunity to be creative and innovative in their work, they can increase their productivity and use their time to create a significant impact in their business!

Impact on productivity

So, what is the main point of promoting human added value among the members of your organization? It’s quite simple: it creates real, long-term effects on the profitability of the business, while giving more autonomy to the workforce.

Implementing new technologies to help employees productivity is a valid option. However, this decision can also involve significant expenses. These sums of money would likely be better invested if they eliminate non-value added activities from the daily lives of employees. In this way, we can target interventions and investments to be made without creating friction and resistance to change among members.

In order to put the right measures in place,that will increase the profitability of organizations, it’s essential to listen to the people who are directly involved – such as the employees. Therefore, they can improve the quality of their work and feel like collaborating with their employer for the good of the organization!

By using our solutions, an employee was able to pinpoint waiting periods that were wasting time for many employees within the organization. Managers also realized that these wasted time periods cost them approximately $ 85,000 per year! By investing $ 30,000 for a heavy-duty overhead crane, the company was able to save money and employees reduced their sources of wasted time, which allowed them to increase their productivity! Focusing on the elimination of non-added value activities allows a rapid and lasting return on investment.

In doing so, the cases in which we have participated clearly demonstrate better profitability for organizations and greater mobilization of human resources. It’s these tools, used by your employees, that’ll allow the implementation of solutions to eliminate unnecessary tasks through value-added activities.

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It’s time to broaden our definition of business productivity to include and emphasize on the importance of employees, whether they are in management or in the workforce. Let us stop limiting our notion of productivity to the function of production. As soon as an employee uses its time for activities that create impact for their organization, he or she creates value and allows for better production capacity.

At Synecdo, 5 years of research and development have enabled us to design solutions to help you determine the organizational changes to be made. We can guide you in setting up concrete means adapted to your organization. It’s by transforming an approach inherited from Taylorism (where people are considered an expense) by one where they will be identified as an added value that your organization will ensure its long-term sustainability.

Learn more about SimulBest!

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