The following report analyses the apparent productivity gap in the UK and makes useful recommendations for businesses who would like to improve their productivity, competitiveness and market share.
– productivity can be thought of as how effectively organisations, and the people working in them, produce value from available inputs
– output per hour worked is still nearly 2% lower than it was when the recession started in early 2008
– weak productivity is also the main reason why average hourly earnings are still some 6% lower in real terms than they were in 2008
– sustained productivity growth has been the main driver of higher living standards in industrialised capitalist economies
– product or service delivery strategies that are based on premium quality (rather than standard or basic quality) are associated with higher productivity
– business leaders need to regularly check whether the prevailing culture is going to be the right one in the years ahead
– analysis also confirms that investment in training is associated with higher relative productivity, especially when all or nearly all of the workforce receives regular training