Productivity – Getting the most out of people – the Chartered Institute of Personnel Development (CIPD)


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.

The problem:

– 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

The solution:

– 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

Productivity – Getting the most out of people