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to lag behind its European counterparts, with businesses struggling to balance innovation, worker wellbeing and outdated practices.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 now fighting back against the slump, with nearly half prioritising employee productivity in 2025, compared to a third of enterprises in Europe. That’s the findings from Kinly’s third annual Trusted Connections report which explores the state of play in industries where AV solutions play a critical role.
The 2025 research, which surveyed 425 enterprise AV professionals working in the UK, Germany, Nordics and the Netherlands, highlights an urgent need for UK businesses to modernise technology and support employee wellbeing to overcome drops in productivity.
Despite ambitions to improve productivity, UK businesses are struggling with systemic challenges including outdated technology and budget constraints.
Less than a third of UK organisations are investing in replacing legacy technology, falling behind their European counterparts, Germany (36 per cent), and the Netherlands (44 per cent). This comes at a time when outdated AV technology is increasingly damaging productivity in remote work, with 62 per cent of UK respondents citing it as a challenge, a statistic up from 60 per cent in 2024.
Budget cuts are also intensifying the problem. More than half of UK enterprises surveyed said they’re operating with reduced funding in 2025, significantly higher than Germany, where less than a third 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 26 per cent of UK businesses are prioritising employee wellbeing, falling behind the overall average of 29 per cent, and significantly lower than countries like the Nordics (38 per cent). This is despite evidence from the University of Oxford’s Wellbeing Research Centre showing that happier, healthier employees are more engaged and productive.
Tom Martin, CEO, 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 Businesses are trying to boost productivity, but many are failing to address the root causes: outdated technology, budget constraints and a lack of focus on employee wellbeing.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."
Discover the state of play in the 2025 AV industry. Download your copy of Kinly Trusted Connections 2025 here.
