Research Finds Smaller Companies Have More Productive Employees

New research conducted by The Guardian Life Small Business Research Institute found that maintaining productivity among employees as the company grows is a common challenge. Businesses with 2 to 9 employees tend to revolve around the owner and typically generate far higher revenues per employee than ones with 50 to 99 employees—between 100 percent and 400 percent higher on average, according to The Guardian Life Index.

The research showed a change in the business owner as the company grows, too—they experience shifting priorities. According to the report, priorities for business owners when they first start their companies are, “desire for personal freedom” or “to maintain a work-life balance.” These priorities decline once the company grows and, “creating opportunities for others” becomes a more key component of what drives them. The full report is available at The Guardian Life Small Business Research Institute’s website, smallbizdom.com.