Working fewer hours and investing in staff are key to business success, according to a report from auditor Kingston Smith and the Cranfield School of Management.
The report rated the tactics of ‘champion’ organisations – fast growing businesses – against their ‘static’ counterparts, termed as businesses just ‘treading water’.
It found that more than three-quarters of successful business managers worked 35-55 hours per week, while 86% of less successful owners were putting in 45-70 hours.
Similarly, 93% of champion bosses believed the quality of staff was the most important factor impacting on their financial performance. Only half of managers at static firms agreed.
Fruitful companies were also more prepared to invest in staff training. Some 85% allocated over 2% of company turnover to improve their workforce, compared to 60% of less successful leaders.
Staff appraisals, gathering feedback and profit sharing were popular techniques among champion rated businesses.