The UK’s productivity continues to lag behind its European counterparts, with businesses struggling to balance innovation, worker wellbeing, and outdated practices
British businesses are fighting back against the UK’s productivity slump, with nearly half (41%) prioritising employee productivity in 2025, compared to a third of enterprises in Europe (36%). That’s according to new data from global provider of audio-visual integration and collaboration services, Kinly.
The new Trusted Connections 2025 research report, which surveyed 425 enterprise AV professionals working in the UK, Germany, Nordics, and the Netherlands, highlights an urgent need for UK businesses to modernise their technology and support employee wellbeing to overcome the productivity slump.
Despite ambitions to improve productivity, UK businesses are struggling with systemic challenges, including outdated technology and budget constraints.
Less than a third (31%) of UK organisations are investing in replacing legacy technology, falling behind other European counterparts such as Germany (36%) and the Netherlands (44%). This comes at a time when outdated AV technology is increasingly damaging productivity in remote work, with 62% of UK respondents citing it as a challenge – up from 60% in 2024.
Budget cuts are also intensifying the problem. More than half (55%) of UK enterprises surveyed said they’re operating with reduced funding in 2025, significantly higher than Germany, where only a third (31%) of respondents cited budget constraints as a challenge.
Beyond technology, a lack of focus on employee wellbeing is further compounding the UK’s productivity crisis. Just a quarter (26%) of UK businesses are prioritising employee wellbeing, falling behind the overall average of 29%, and significantly lower than countries like the Nordics (38%). This is despite evidence that happier, healthier employees are more engaged and productive.
Commenting on these findings, Tom Martin, CEO of Kinly said, “The UK’s productivity crisis is no longer just a business problem – it’s a national economic emergency. While other major economies have recovered from post-pandemic workforce shrinkage, Britain is still struggling. Businesses are trying to boost productivity, but many are failing to address the root causes: outdated technology, budget constraints, and a lack of focus on employee wellbeing.”
“The companies that invest in both modern technology and workplace wellbeing will be the ones that thrive in this new economy. Productivity isn’t just about working harder – it’s about working smarter, and right now, too many UK businesses are missing that opportunity.”
To find out more about the new Trusted Connections 2025 research and download your own copy, visit the Kinly website here.
