How do you improve productivity ?
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| Pic from www.managers.org.uk |
How do you characterise productivity in economic terms? It is more complex than just measuring how much you are doing in a given time.
While labour productivity in other countries has grown in the last few years, UK businesses aren't as productive as they should be and it is still lower than it was before the recession.
The lack of productivity growth is particularly worrying in view of the national living wage which could jeopardise jobs if productivity doesn't catch up.
So, what is the problem?
Well, it depends who you ask...
Here just a few potential causes:
- low investment
- lack of credit
- diminishing skills
- UK strong employment rate during and since the recession
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| Pic from www.productivity501.com |
One thing is sure, it is not laziness: working long hours is not the same as working more productively so comparing a middle income country like China with the UK is like comparing apples and pears.
If a business has an internal culture that is aligned with the strategic direction together with a balanced approach to investment in capital, equipment and people, it is also likely to have higher productivity. If a business also equips their people to change and acquire more skills through time, it can really then influence productivity.
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