ThePeopleAlchemist Edit: HR, Business and how to improve productivity
Can you improve productivity? And 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 before the recession.
The lack of productivity growth is particularly worrying given the national living wage, which could jeopardise jobs if productivity doesn’t catch up.
So, what is the problem? Well, it depends on who you ask…
Here are just a few potential causes:
- low investment
- lack of credit
- diminishing skills
- UK’s strong employment rate during and since the recession
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.
Suppose a business has an internal culture aligned with the strategic direction and a balanced approach to investment in capital, equipment, and people. In that case, it is also likely to have higher productivity. If a business also equips its people to change and acquire more skills through time, it can then influence productivity