Transport delays undermine firms’ productivity

A poor transport infrastructure is to blame for increasing staff lateness and loss of production time among small businesses in the UK, new research shows.

A survey by Bibby Financial Services found that 40% of small firms in the UK are suffering from staff tardiness, which owners and managers blame on excessive traffic congestion and public transport delays.

Nearly a quarter of those surveyed said that transport problems make their workers late at least once a week, and 6% blame the transport infrastructure for making their employees late every day of the workweek.

“Every small business owner or manager knows their staff are going to be late from time to time, but we had no idea of the true extent of the problem,” said David Robertson, chief executive of Bibby.

“Most bosses will except this is going to happen, but I don’t imagine they have any idea of the overall detrimental effect it has on their businesses,” he added.

Two of every 10 owners and managers surveyed stated that their company loses valuable production time due to employee lateness, a trend which cost small businesses in the UK £755 million in lost productivity and profits last year.

The figures come in the wake of news of a planned strike on 23 May by train drivers working for London Underground’s District Line, which is expected to disrupt service on other tube lines.

Two more strikes are also planned for 21 May and 7 June by train conductors for mainline operator One, which runs services into the City at Fenchurch Street Station.

As 37% of respondents in the Bibby study stated traffic congestion was the number-one cause of employee lateness, some have called for extending the London Mayor Ken Livingstone’s congestion charge on motorists to other cities in the UK. However, Robertson cast doubts on this move and suggested the problem is deeper.

“Extending congestion charging to other UK cities may not be the answer, but changes will have to be made to prevent small business from buckling under the strain caused by an outdated road and rail network,” he said.