While almost 90% of large UK firms say they are concerned about increasing their productivity, they are investing a mere 0.25% of revenues in initiatives to improve it, according to a new survey by the Centre for Economics and Business Research and Concentra Analytics.
And this is at a time when output per hour worked just fell for the third successive quarter in the first three months of 2019 – the Bank of England says productivity is around 20% below where it would have been had it continued at pre-2008 crisis levels.
CEBR estimates that UK GDP could increase £10.4bn in the coming years if employers develop a better understanding of how employees’ productivity can be boosted.
One issue is that large companies prefer to spend money on new technologies such as automation without properly thinking through how they could best be used to increase workers’ productivity.
“There is a clear correlation between organisations that are most productive and have both macro and micro insight into employee productivity,” says Kay Neufeld, head of macroeconomics at CEBR.