Xero Productivity XSBI

Xero recently released a special Xero Small Business Insights (XSBI) report outlining the reduced productivity and additional pressure being felt by Kiwi small business owners. 
 

Productivity in New Zealand small businesses (adjusted for inflation) was generally between $100/hour and $110/hour in the three year period prior to the pandemic. The first lockdown business closures and disruptions saw it plunge as low as $59.20/hour in April 2020. 
 

Kiwi small businesses are often working long hours, with less to show for it in this inflationary environment. Although Xero data ranks New Zealand ahead of Australia and the UK in terms of productivity, New Zealand still lags behind in the OECD’s recent productivity rankings, sitting 30th out of the 38 countries.
 

Important moves are required to boost small business productivity across the country. This will empower them to lift profits, pay higher wages, achieve more value per hour, and ultimately strengthen New Zealand’s economy. 
 

Digitalisation is a fundamental part of the solution; previous NZIER researchcommissioned by Xero revealed a 20% uptake in the number of businesses adopting cloud-based business tools in the future could add up to $7.8 billion to Aotearoa’s annual GDP through improved productivity. 
 

It’s important for both small businesses to consider how digital tools can be incorporated into the workplace, and for the Government to take action to support the development of our digital economy. 

The full report can be viewed here; Xero has also put together a guide 
 including tips on how small businesses can lift their own productivity.