Growth through productivity – our #1 aim
The Economist assessed Britain’s economic situation in the wake of the 2015 General Election results stating that “productivity growth has been the missing ingredient of Britain’s economic recovery. In 2014 output per hour worked was 1.3% lower than in 2011, and some 14% beneath its pre-crisis trend. Much like predictions of interest-rate rises, forecasts of a return to productivity growth have come and gone. If productivity had grown as predicted by the Office for Budget Responsibility, Britain’s fiscal watchdog, in 2010, it would be 8.4% higher than it is today.”
Employment has been on a positive curve for some time and unemployment is now at an encouraging 5.6%, down from 8.5% in 2011. The CIPD publishes a regular Labour Market Outlook based on statistics published by the Office for National Statistics. CIPD advisers’ message has been the same for some months: employment is improving but real term wages are not. They also call for better productivity and urge employers to invest in better technology, improved processes and employee development.
In light of our ongoing Productivity blog series, this is all very interesting reading. Both individuals and businesses can work toward growth through productivity on many levels. Our blog series approaches the topic from perhaps a more personal standpoint but the same principles can – and should – be implemented into corporate governance to achieve better outputs. Of course, one thing that is sure to reduce productivity is a high absence level. Absenteeism not only stops the production line, so to speak, where there is a worker missing but it is also detrimental to the motivation and morale of the rest of team. Those left to pick up the slack, will struggle to focus on their primary tasks to the fullest and trying to spread yourself too thin will result in rushed and sub-optimal results.
Engage is a great tool for analysing absence patterns and can ultimately help you achieve growth through productivity – benefiting not only your company but the economy in general.