Now we’ve survived the recession……………
May 20, 2015 3:03 pm
Now we’ve survived the recession, Productivity is the big challenge for business.
The Bank of England has been “successively disappointed in the productivity performance of the UK economy”, its Governor Mark Carney told the Today programme. It does seem to be the British problem, contrasting sharply with similar economic cultures like Germany who are much more productive than we are. Mark said that productivity matters enormously. It matters in two ways… to help achieve the Bank’s core responsibility, which is to deliver low, stable, predictable inflation, a 2% rate of inflation… and it matters ultimately for living standards in the country, the incomes of us all.
Many businesses, from very small to very large, reflect this national need for better productivity. For a business it means efficient ways of working – doing more with the same, or doing more with less, and creativity in how things are done. Across the board we are nationally less productive than we were 7 years ago, even though we work longer hours. As staff are the main business tool, it is worth making productivity a constant factor in review of performance. Just being there at work is not enough and just doing more of the same in the same way is not enough. The aim is that each individual works more efficiently and so is more productive.
Consider what it is you are ‘producing’ – goods or a service or both – and consider how your staff can work more efficiently and therefore more productively within existing working hours and cost. Increased productivity should then translate directly into increased income, and on existing costs that must therefore mean higher profit. Good for the country and good for you!
Frances Barker, Employment.