UK businesses continue to
struggle to match, let alone
exceed, the productivity levels
achieved by our global competitors.
Over the last decade, the UK’s labour
productivity growth rate fell to a level
lower than at any time during the 20th
century, with little indication that the
situation will improve any time soon.
With the UK now currently ranked
behind many of its main European
counterparts for productivity, including
Germany, the Netherlands, France,
Switzerland and Denmark, it’s crucial
that businesses address the issue sooner
rather than later – especially as Brexit
uncertainty continues to build.
Productivity is measured by the
amount of work produced per working
hour, and is the main driver of long-term
economic growth and higher living
standards. According to data from the
O ice for National Statistics (ONS), the
UK has achieved productivity growth
of just two per cent in the last decade
– a rate that was previously managed
every year. Widely referred to as the
UK’s ‘productivity puzzle’, the statistics
support the idea that despite more
people being employed, organisations
still face an uphill battle when it comes
to improving business output.
In theory, recruiting more workers
or increasing working hours could
help solve this long-standing problem.
However, in practice it is having the
opposite e ect, as more people seem
to be entering unproductive jobs.
Businesses are beginning to take more
extreme measures to improve the
situation, whether by turning to new
technology like artificial intelligence or
spending more money on recruitment.
Of course, investing in state-ofthe
art technology can be a positive
move and a sign of growth as firms
allocate significant resources to making
processes more e icient. However, new
research from the CBI suggests the UK
could add £110 billion to the economy
by improving people management
practices within firms – using personal
development to help workers realise
their full potential.
Rather than replace workers with
technology, improvements can be
made by providing more focused
training, helping individuals learn the
skills needed to complete high pay-o
activities.
NURTURING THE TALENT WITHIN
Not only will personal development
enhance workplace productivity, but it
FM CAREERS - RECRUITMENT
will also reduce the need for businesses
to recruit talent from elsewhere, saving
significant time and money.
While some organisations attempt to
solve the productivity puzzle by bringing
in experienced leaders, others recognise
the potential in their existing workforce,
using bespoke development courses
to help sta progress into more senior
positions.
For many years, there has been a
false perception that productivity can
be improved by simply working longer
hours. However, some of the most
productive nations in the world have
a shorter average working week than
the UK. According to research, the UK
averages 1,677 annual hours with £16.84
hourly productivity, ranking behind
many of its European counterparts.
Germany, for example, has 1,371 annual
hours and £25.95 hourly productivity,
while the Netherlands claim 1,425
annual hours with £28.35 hourly
productivity.
I would argue that a better course is to
discover the strengths of your existing
team, using your workforce e ectively to
accomplish tasks. There are programmes
available designed to teach people how
to use their time and talent e ectively.
Refined and improved over time, these
courses help individuals understand the
true power of goal-setting and teaching
communication, time management and
delegation skills – all vital to operating
within a highly productive team.
Other programmes focus on the
strategic side of personal development,
recognising the need for clear-thinking
leaders who can create e ective
business strategies. Helping workers
to become strategic leaders is crucial
to long-term business growth, as they
begin to optimise internal structures and
enhance productivity using new skills.
While training your team and inspiring
a new wave of leaders is a major part
of the journey, businesses must also
look for ways to continuously improve
standards. In recent years, psychometric
assessments have become increasingly
popular, allowing organisations
to uncover the personalities and
motivations of new and existing
workers. Typically used during the
recruitment process, these assessments
allow businesses to clearly judge
potential candidates, gaining a better
understanding of whether an individual
will fit the culture of the organisation.
Rather than testing individuals
with right or wrong questions, the
assessments are used to uncover hidden
traits, allowing organisations to find
exactly what they’re looking for. They
have become particularly popular within
organisations su ering from high sta
turnover, where decision-makers have
relied heavily on gut instinct and hired
the wrong candidate.
Psychometric assessments can also
be used within existing teams to identify
strengths and weaknesses, showing
businesses how to enhance productivity
by utilising the talent at their disposal.
The UK’s productivity puzzle has leƒ
organisations scratching their heads
as they continue to search for ways to
improve the situation. While expanding
the existing workforce or investing in
the latest technology may help soƒ en
the blow, these solutions tend to cost a
significant amount of money and are not
sustainable in the long term.
Instead, businesses must look closer
to home, recognising the potential of
their existing workers and giving them
the support and training needed to
become e ective leaders. This will mean
researching the development tools
and opportunities available, as well as
seeking advice and guidance from those
experienced in drawing out the best
from people.
THE RIGHT STUFF
Nick Howes, Managing Director at Leadership Management International
UK, argues that developing the skills of existing workers could be the
solution to closing the UK productivity gap
AUGUST 2019 53