UK productivity lagging due to outdated tech & budgets

The UK's productivity is lagging behind its European counterparts, with British businesses facing challenges due to outdated systems, limited budgets, and insufficient focus on employee wellbeing, according to a recent report by Kinly.

The "Trusted Connections 2025" report surveyed 425 enterprise audio-visual (AV) professionals across the UK, Germany, the Nordics, and the Netherlands. The findings suggest a pressing need for UK enterprises to modernise technology and enhance employee support to improve productivity amidst financial constraints and technological challenges.

A significant portion of UK businesses prioritise employee productivity, with 41% focusing on boosting this aspect in 2025, compared to 36% of enterprises in Europe. However, there are systemic hurdles impeding these efforts.

The report highlights that less than one-third (31%) of UK organisations are investing in replacing outdated technology, in contrast to Germany (36%) and the Netherlands (44%). Outdated AV technology is cited as a growing challenge, with 62% of UK respondents indicating that it negatively impacts productivity in remote work environments. This constitutes an increase from 60% in 2024.

Financial limitations exacerbate these technological shortcomings, as more than half (55%) of UK enterprises report operating with reduced budgets in 2025. This figure is notably higher compared to Germany, where only 31% of enterprises face similar budget constraints.

The report also reveals that employee wellbeing is often neglected. Only 26% of UK businesses are placing emphasis on employee wellbeing, trailing the overall average of 29%, and considerably lower than the focus in the Nordics, where it stands at 38%. Despite growing evidence that improved employee wellbeing enhances engagement and productivity, many UK companies are not prioritising it.

Commenting on the situation, Tom Martin, CEO of Kinly, stated, "The UK's productivity crisis is no longer just a business problem – it's a national economic emergency. While other major economies have recovered from post-pandemic workforce shrinkage, Britain is still struggling. Businesses are trying to boost productivity, but many are failing to address the root causes: outdated technology, budget constraints, and a lack of focus on employee wellbeing."

He added, "The companies that invest in both modern technology and workplace wellbeing will be the ones that thrive in this new economy. Productivity isn't just about working harder – it's about working smarter, and right now, too many UK businesses are missing that opportunity."

These findings underscore the necessity for UK businesses to address the challenges outlined in the report to regain competitive advantage and enhance productivity sustainably.