Productivity in SMEs struggles due to staff's tech skill deficit

New findings published today indicate that almost four out of ten small and medium-sized enterprises (SMEs) have suffered productivity losses due to staff's fundamental lack of tech abilities. The research, led by Sharp, underscored the major productivity hurdle posed by employees' deficiencies in using Microsoft 365.

The study dissected the technological proficiency of employees in 5,770 SMEs dotted across Europe, with a special focus on 502 UK-based companies. The goal was to comprehend how gaps in rudimentary tech capabilities might be holding back productivity levels.

The crucial revelations of the study are both telling and disconcerting. A considerable chunk of these businesses (25%) credited their employees' struggle to utilise general software options as one of the primary challenges their companies faced in the last year. Furthermore, just over a third (37%) of tech decision-makers in these SMEs expressed confidence in their understanding of Microsoft 365 and the potential benefits it can bring to their operations.

The study has ignited a new debate over the productivity advantages of remote work. In the face of these technological competency gaps, a quarter of SME leaders believe that their employees exhibit more productivity when working from home. However, a slightly lower proportion of these leaders (20%) consider remote workers to be less productive.

Colin Blumenthal, Vice President of IT Services at Sharp Europe, offered his take on the revelations: "No matter the size of the business or organisation, there is a significant reliance in many firms on Microsoft 365 for the day-to-day tasks from standard document and spreadsheet work through to planning, managing operations and sales and marketing. Without the right training around how to get the most from this software, businesses are clearly missing out on being as productive as they could be."

Blumenthal also emphasised the need for SMEs to swiftly address this skills gap, particularly in light of evolving technology, such as AI enhancements in Microsoft 365, which present fresh avenues for improving productivity. He highlighted how these opportunities could bolster competitiveness, especially for SMEs willing to tackle this tech skills gap head-on.

Nevertheless, the study revealed that the technological proficiency bottleneck was only part of the productivity picture. SMEs are also divided on the impact of remote working on productivity. The data showed that 45% of the companies believed productivity remained the same, regardless of whether employees worked from the office or from home. However, 25% of these businesses held the view that remote working enhances productivity, but another fifth thought it reduces output.

Additionally, as Blumenthal pointed out, concerns extend beyond mere tech competencies. Other factors are shaping perceptions around remote working productivity. He mentioned that "almost a third think that a productivity issue is how an employee's desk or table is set up when working from home."

This research clearly shows that addressing basic tech skills gaps and contemplating the broader context of modern working practices could be pivotal in boosting productivity levels and, ultimately, the success of SMEs.