Productivity remains a thorny issue in many US workplaces. With the exception of the 1995-2003 period, annual productivity rates have declined by 36 percent since the late 1940′s, going from 2.2 percent to the current rate of 1.4 percent. Some years, productivity rate increases can be as low as 0.8 percent, a figure that has led many to affirm that America has a productivity problem. Low productivity has far-reaching repercussions, going from diminished economic output to a slow increase in living standards. So what can US employers do to improve productivity in the workplace?

In the first place, it is important to understand that productivity growth is closely linked to worker output (whether this output is measured on an hourly basis or otherwise). This means that identifying the reasons behind low employee productivity is a crucial step when it comes to defining a productivity strategy. To that end, business owners should critically assess how their company is performing along the following dimensions:

Resources

Inadequate resources are one of the main causes behind low workplace productivity. When staff lack resources to do their job, their performance is unsatisfactory and their stress levels are high, and these factors will eventually lead to dissatisfaction, frustration, and employee burnout.

It is worth noting that resources can be tangible (equipment, technology) and intangible (training, systems, and procedures). On this note, most modern businesses can benefit from investing in technological resources that automate processes and therefore liberate employees from having to perform redundant and unnecessarily time-consuming tasks.

Training

No matter how many resources you may put at the disposal of your employees, if they lack training their productivity will be severely affected. Adequate training helps staff make efficient use of the resources available, bolsters their confidence, and strengthens their motivation to get the job well done. Read more »

The effects of the EU referendum are the most widely debated topic in social and economic circles across the UK. So far, there is a lack of unanimity regarding the magnitude of this development, since conflicting reports emerge depending of which figures are being analysed. To assess the impact of the referendum thus far, we examine several individual indicators linked to the performance of the economy, based on data collected by the Office for National Statistics.

- On the whole, the UK’s economy grew by 2 per cent in 2016, mainly thanks to a resilient manufacturing sector that compensated for a weakened retail sector.

- The value of pound sterling experienced a sharp drop: three months after the referendum it was 20 per cent lower on a year-on-year basis.

- Linked to devaluation of the pound was an increase in the Consumer Prices Index, along with a rise in inflation and in the price of imports due to unfavourable currency exchange rates. Nevertheless, a PwC report affirmed that consumer spending has not been as negatively affected by the Brexit vote as it was initially predicted.

- On the brighter side, the drop in value of the pound had a positive effect on the export sector, which accounts for a significant part of the country’s overall economic activity. Barely two months after the referendum, manufacturing output growth reached its highest level since 2014, and some suggest that the fall in sterling value is the main reason behind this spike.

- A modest increase in GDP (2 per cent higher than in 2015). Short-term prospects in this respect will depend on the performance of the services sector.

- A minor increase (0.8 per cent) in the Index of Services during the quarter that followed the referendum. This is a positive figure considering the connection between this indicator, the services industry, and the overall economy. Read more »