Search Results for: productivity

May 17, 2017

Automation starting to generate productivity gains, but no major job losses yet ⁰

by Neil Franklin • News, Technology, Workplace

Business process automation is enabling companies to realise significant productivity gains in such areas as finance, accounting and HR, but it is not yet leading to broad job losses, according to a new study from tech research firm Information Services Group (ISG). Beyond automation’s impact on enterprises, the first ISG Automation Index report also claims that IT service providers are extensively introducing automation into their offerings, leading to dramatic improvements in productivity and service levels. This accelerated pace of change is prompting the vast majority of IT and business leaders to say that IT will be the business function most impacted by automation in the next two years.

April 21, 2017

Governments need to address perfect storm of low wages, productivity and automation ⁰

by Mark Eltringham • News, Technology

Governments need to act now to address issues such as productivity, automation and stagnating or falling wages, according to two new reports from the International Monetary Fund (IMF). In both its Spring global policy agenda and world economic outlook, the IMF claims that workers are subject to a perfect storm of factors that will destabilise their jobs and lives unless governments implement robust policies to help them work more flexibly, acquire new skills and work alongside the new generation of automated technologies instead of in competition with them. Addressing the issues in a speech last week, IMF managing director Christine Lagarde said that governments need to create a new economic and social architecture that allows everybody to take advantage of the opportunities offered by technology and the current growth in the world economy.

April 14, 2017

New OECD study sets out link between a dynamic business environment and productivity ⁰

by Neil Franklin • News, Workplace

The OECD has published a new report which uses data from firms in eight countries (Belgium, Brazil, Canada, Costa Rica, Japan, New Zealand, Norway, United Kingdom) to assess the link between ‘business dynamics’ and productivity. The study, Business Dynamics and Productivity, claims that a dynamic business environment plays ‘an important role not only as a key driver of job creation but also as an engine of productivity growth. A growing body of research highlights significant differences in business dynamics across countries and over time, in particular over the different phases of the business cycle.’ Although the definition of ‘dynamic’ remains vague, the report suggests that firms who go beyond the average that is expected of them are not only better equipped to capitalise on the good times but also better at dealing with major economic shocks. The report looks in depth at the question of whether business growth and productivity are best served by organic growth through job creation or non-organic growth through mergers and acquisitions.

April 13, 2017

UK productivity crisis deepens…but technology probably isn’t the solution ⁰

by Neil Franklin • News

Following last week’s report from the ONS on the UK’s intransigent productivity challenge, and the Bank of England’s Chief Economist Andy Haldane’s intervention on the issue, a new report from accountants and business advisers BDO claims that the UK’s productivity crisis is deepening, rather than improving. The latest report claims that while firms are continuing to hire more staff, business output is struggling to pick up. The amount of output produced for each hour worked is therefore likely to slow further, undermining the UK’s already low productivity levels. This is despite the steady increase in employment levels which have been relatively unaffected by the uncertainty surrounding Brexit.

April 6, 2017

UK productivity is up but the underlying puzzle remains unsolved ⁰

by Mark Eltringham • News, Workplace

The latest productivity data from the Office for National Statistics shows that UK productivity is up, although the accompanying briefing admits that the data ‘provides little sign of an end to the UK’s productivity puzzle’. According to the report, output per hour increased in the final quarter of 2016 at its fastest rate for more than a year. Quarterly growth of 0.4 percent lifted output per hour 1.2 percent higher than a year ago. While the productivity puzzle is a feature of most developed economies, it is particularly intransigent in the UK, which has a significant gap compared to other nations such as Germany, the US and France. This is despite the fact that Britons spend more time working than those in any comparable nation, except the US.

February 15, 2017

UK employment rises to record levels (and productivity is up too) ⁰

by Mark Eltringham • News

The UK’s employment rate rose to 74.6 per cent in the final three months of last year, the highest rate recorded since data started being collected in 1971, according to the latest figures from the Office for National Statistics published today. The data also showed that UK productivity grew by 0.3 percent in Quarter 4 of 2016, following an increase of 0.4 percent in Q3, and that average earnings were 2.6 per cent higher over the fourth quarter compared with the same period in 2015. The growth in employment is seen to reflect a decline in the proportion of adults who are inactive but not seeking work. The unemployment rate remained at 4.8 per cent, the lowest level since 2005. The number of people in full-time employment rose by 45,000 in the three months to December. This was partly offset by a 7,000 fall in the number of people working part-time.

February 7, 2017

Brexit impact on UK’s future workforce size could undermine productivity ⁰

by Sara Bean • Knowledge, Legal news, News, Technology, Workplace

With the UK facing at best, very slow growth, or even shrinkage, of the working population, future changes to migration levels into the UK due to Brexit could exacerbate the financial stresses and strains caused by the UK’s aging workforce. This is according to the Mercer Workforce Monitor™ which claims that companies will need to invest heavily in automation, sectors of society historically under-represented in the workforce and look at ways of increasing productivity. According to the analysis, since 2013, the levels of EU and non-EU born immigration into the UK workforce has filled a gap left by the aging of the nation’s UK-born workforce which sees more in this group leave the workforce – through retirement, emigration or death – than enter it. National growth is closely linked to workforce growth; so reducing its future size would create major headwinds for the UK economy and since another 3.4 million people will reach the age of 65 in 2030; unless the UK decides to make drastic changes to the funding of pensions, health and social care, this smaller working population will be required to proportionally spend more of their income to care for their older citizens.

January 11, 2017

Detoxify the workplace to improve employee wellbeing and productivity ⁰

by Sara Bean • Case studies, News, Wellbeing, Workplace design

While most organisations recognise the importance of keeping their employees safe, not enough focus is being given to wellness, and those organisations that do not prioritise employee wellness and design their workplaces accordingly will lose talent and potentially face bottom line repercussions. This is according to AECOM, which is urging organisations to “detoxify” their work environments to improve employee wellbeing. With 9.9 million working days lost due to work-related stress, depression or anxiety in Great Britain in 2014/151, employees’ health and happiness can have a direct impact on business performance. Making improvements to the physical environment can help organisations create spaces and working cultures that encourage creativity, support wellbeing and increase job satisfaction. More →

December 23, 2016

Presenteeism doesn’t aid productivity, so employers should set workers free ⁰

by Mark Eltringham • Comment, Flexible working

At this time of year, the days are short, the morning commute can be hellish and traffic grid-locked. Wouldn’t it be ideal if more employers recognised this and offered a solution involving flexible hours, remote collaboration or even home-working? And not just at Christmas, but the whole year round? More and more companies are switching on to the benefits this can bring in terms of their employees’ well-being and productivity. Firms can allow colleagues to occasionally work from home or a third place, provide tools that enable them to work remotely and support an agile working agenda. This can be done in parallel with making provision for a hi-tech and collaborative workplace where colleagues can get together regularly to connect, get work done and be part of an effective team.

December 9, 2016

The workplace holds the key to enormous productivity boost, claims study ⁰

by Mark Eltringham • Facilities management, News, Workplace design

Companies could boost their productivity by between 1 and 3.5 per cent, adding as much as £70 billion to the UK economy, by focusing on how the workplace might be used to generate revenue, instead of regarding them simply as a cost to be managed. That is according to the newly published The Workplace Advantage report from The Stoddart Review based on a meta-analysis of 200 studies by workplace expert Dr Nigel Oseland. Taking a new approach to how space is used to help employees to be productive and changing who is responsible for the decisions is the first step. The Review, a collaboration between business leaders and workplace experts, found that only a little over a half (53 percent) of the UK’s office workers can say their workplace enables them to be productive. For the rest, a workplace that’s unproductive is also affecting their pride in the company, its image and culture. It found that too many businesses are prioritising filling up their offices with people rather than asking themselves ‘what will make their staff productive’. As a result, as many as 70 percent say their office is too noisy and they are disappointed by the lack of different types of workspace including communal areas and break-out zones.

December 6, 2016

Sleep deprivation hits workplace health and productivity harder than we thought ⁰

by Sara Bean • Flexible working, News, Wellbeing, Workplace

Politicians and corporate bosses who seems to pride themselves on being able to function on less than six hours of sleep a night are sending out the wrong message to the workforce, as recent research suggests that a lack of sleep among UK workers is costing the economy up to £40 billion a year, 1.86 per cent of the country’s GDP. According to researchers at the not-for-profit research organisation RAND Europe, sleep deprivation leads to a higher mortality risk and lower productivity levels among the workforce, which, when combined, has a significant impact on a nation’s economy. A person who sleeps on average less than six hours a night has a 13 per cent higher mortality risk than someone sleeping between seven and nine hours, researchers found, while those sleeping between six and seven hours a day have a 7 per cent higher mortality risk. The report, Why Sleep Matters – The Economic Costs of Insufficient Sleep, describes sleeping between seven and nine hours per night as the “healthy daily sleep range”.