Businesses need to make productivity a priority to improve growth
Recent official figures show that the UK has a problem with encouraging productivity in the workplace.
The latest figures released by the Office for National Statistics shows that UK productivity fell by 1.2 per cent in the last quarter of 2015.
The biggest decline was in the manufacturing sector, where output per hour fell by two per cent. The service sector also experience a decline of 0.7 per cent per hour, yet this figure was still 1.1 per cent higher than a year earlier.
Productivity is a key element of business growth, but it appears businesses across the UK are struggling to improve productivity.
For the last few years, productivity in the UK has been severely in decline. It is often the case in most businesses that workers feel they should be earning more for the work they do.
And yet many businesses find it hard to justify increasing wages without demonstrable benefits in productivity, leaving many owners in a Catch 22 situation.
Productivity isn’t the only sign of a successful business and that other factors have a part to play. Some businesses could be doing more to improve processes and the work environment to make employees more productive.
It is hard to admit it when you’re running a company, but sometimes owners and managers could do with some professional help. This shouldn’t be viewed as an admission of defeat, but more as an investment in future success.
Author: Alan Taylor FCCA
A former pupil at Ripley St Thomas C of E High School in Lancaster, Alan joined Scott & Wilkinson directly from school in 1994 and qualified as an Accountant in 2001. Alan is the Partner with responsibility for the day-to-day...
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