Factors that reduce work performance

The decrease in employee performance happens when the size of the business grows and causes many impacts on both the finance and resources. This article will show the reasons that affect employee performance.

1. Lack of connection between employees

Factors affecting employee performance may be a lack of cohesion between employees and managers. Because then, the management cannot know specifically what the employee’s work is, is there any obstacle? Employees think superiors do not support them.


This thing will lead to employee boredom, productivity decrease, and high job-hopping intentions. Therefore, businesses need to standardize processes and put all the work on the same platform to make it easy for leaders and employees to interact. At the same time, businesses should also build a culture of exchange, face-to-face meetings by monthly or quarterly activities to support and understand each other.

2. Staff lack of feedback from superiors

For employees, suggestions from superiors are necessary, because they need to improve themselves, better work in the future. But when superiors do not respond to employees’ work, they will lack the motivation to work or recognize mistakes to correct. This leads to reduced productivity, affecting employee morale in the long run.

Therefore, leadership should give timely feedback on employees’ works, and make positive contributions based on their results. Doing so will motivate employees to work more efficiently, as well as retain talent.

3. Lack of recognition

The employee’s recognition desire is very high, and if there is a lack of recognition and reward from the leadership level, it will affect their productivity and work results. Therefore, businesses should have incentives such as financial, promotion, or other incentives to motivate employees.


If the enterprise has not yet finalized the reward policy, employees should be allowed to contribute ideas. Thus, enterprises will easily choose the appropriate form of bonus to include in their internal policies.

4. Businesses lack direction

Because of not seeing a clear business direction, employees will lack work enthusiasm and less contribution. The reason is that employees do not know the meaning of their job, and what benefits their contributions will bring to the business. In the long run, employees will become tired, and leave the business.

Therefore, businesses need to let employees see clear business goals and directions to make them excited to contribute their abilities and complete the best-assigned work.

5. Workflow lacks technology

Too complex progress also causes poor productivity consequences since employees have to spend time searching for the data and accessing many archived files. In the digital age, every employee wants a more convenient, modern working process to optimize efficiency.

Therefore, businesses should consider implementing an “all-in-one” management system such as ERP to standardize the process to help all activities take place continuously. In addition, the board of directors can also view the work and reports from the departments without intervening in their work process.

These are common causes of employee productivity reduction in businesses that are growing in size. As for work processes, leaders should consider using an ERP system to manage all departmental activities to bring better work results.