For startups and SMEs, the challenge is twofold; remaining agile in a changing business landscape while ensuring that employees can work in ways that best suit their lifestyle. The risk many organisations face is creating an ‘always-on’ culture where employees feel pressured to be available at all hours. Without a structured digital strategy, businesses may struggle to optimise remote working arrangements, leading to disengagement, burnout and talent stagnation.

As decision makers across organisations reevaluate their approaches, one thing is clear: a digital-first workplace will be the key to unlocking productivity, bolstering employee engagement, and guaranteeing business resilience.

The productivity debate

With collaboration, workplace culture and efficiency as commonly cited reasons for enforcing return-to-office mandates, our recent research with the Centre of Economics and Business Research (Cebr) suggests that businesses investing in digital solutions are seeing positive outcomes, regardless of where their teams work. Over half (52%) of all surveyed companies that made digital investments reported improvements in productivity, demonstrating that digitally equipped workplaces are unlocking benefits from this cultural transformation.

Employees today expect greater flexibility, but that flexibility must be underpinned by a robust digital infrastructure. Without the right tools and connectivity, remote and hybrid models can create inefficiencies, communication gaps, and perpetuate employee dissatisfaction. Companies that prioritise digital strategies not only empower their workforce but also future-proof their business operations.

Digital investment is a competitive advantage

Unlike large corporations, which are often hampered by legacy systems, smaller businesses have the advantage of agility of their side. They can build modern digital-first operations from the ground up. This means integrating technology that facilitates seamless workflows, from cloud-based project management tools to AI-driven automation that not only enhances efficiency but optimises the customer journey.

Our research highlights that companies identified as ‘digital leaders’ – those who are actively increasing their use of digital technology – report employee satisfaction rates three times higher than their counterparts who lag behind. This suggests that fostering a strong digital environment isn’t just about productivity; it also plays a critical role in workplace morale, engagement, and long-term staff retention.

Digital investment shouldn’t just be an imperative to benefit employees but should also directly impact business growth. The ability to scale and enter new markets is greatly enhanced when a company’s digital strategy is at the core of its operations. Our research showed that 75% of SMEs were under-investing in tech – our Get More Fund gives SMEs access to the devices and connectivity they need, with an expert review to guide them in making the right tech choices. SMEs that proactively embrace digital will find themselves in a stronger competitive position than those that merely react to change.

Building digital skills and confidence

Having the technology is one thing, having the skills to use it is the other piece of the productivity puzzle. Ensuring that employees have the digital skills necessary to navigate a tech-driven workplace is essential for maximising productivity. Our study found that while 93% of digital leaders view upskilling as crucial to their strategy, only 44% of organisations offer regular digital skills training. 

Providing ongoing, structured training and clearly communicating the benefits and reasons behind introducing new technology can pave the way for digitally fluent workforces who are more adaptable and innovative.

Bringing onboard an external partner can help bridge the gap. They can offer both advice and solutions, and ongoing consultative help past the point of implementation. The right partner will also be able to guide you to a personalised digital approach, one that meets the specific needs of your business. 

Businesses that prioritise ongoing digital education not only improve their operational capabilities but also boost employee confidence and engagement. This is especially relevant for startups and SMEs, where smaller teams mean that each individual’s proficiency in digital tools can have a significant impact on an organisation’s overall performance.

Being digitally prepared for the future

By investing in connectivity, workforce training, and flexible working models, business leaders can create environments where employees thrive – whether onsite or remote.  As our research shows, there are positive parallels between employees’ digital preparedness for the future and the strength of a business’ overall digital culture. Businesses who are digital leaders are more attractive to talent, more productive and better positioned for sustainable growth. The challenge now is for leaders to take action and ensure their organisations are ready for the next era of work.

Ross Pearson is the Head of Small Enterprise, Virgin Media O2 Business.

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