UK businesses are fighting against a productivity slump, with nearly half set to prioritise worker productivity this year, compared to just over a third of enterprises in Europe, according to new data from audio-visual integration and collaboration services provider, Kinly.

The firm’s Trusted Connections 2025 report found that despite 41% of UK businesses looking to focus on employee productivity, many are struggling with systemic challenges, including outdated technology and budget constraints. 

Kinly’s study, which surveyed 425 enterprise AV professionals working in the UK and Europe, highlights an urgent need for UK firms to modernise technology and support employee wellbeing if they are to overcome the productivity slump.

The data shows that 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%). 

Kinly claims that an overreliance on outdated AV technology is increasingly damaging productivity for the UK’s remote workers, with 62% of respondents citing it as a top challenge, up from 60% last year.

More companies are, however, looking to build robust, up-to-date communication systems using emerging tech, with 61% reporting that AI will drive AV advancements this year, 20% investing more in immersive reality tech, and 13% even looking to holograms, avatars, and 3D comms.    

Beyond technology, a lack of focus on employee wellbeing is further compounding the UK’s productivity crisis, with just a quarter (26%) of UK businesses prioritising employee wellbeing, falling behind the average of 29%, and significantly lower than countries like the Nordics (38%). 

Budget cuts are also intensifying productivity challenges, as more than half of UK enterprises (55%) 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.

While the data shows that law enforcement and higher education have been hit the hardest, with nearly two-thirds of organisations polled having faced budget cuts, private industries have also felt the pinch, with the finance (47%), professional services (41%), and energy (37%) sectors all facing reduced budgets. 

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“The UK’s productivity crisis is no longer just a business problem – it’s a national economic emergency,” said Tom Martin, CEO of Kinly.

“While other major economies have recovered from post-pandemic workforce shrinkage, Britain is still struggling.

“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.”