Fair treatment of employees is a cornerstone for improving productivity

Improving productivity is a concern for all businesses but it is harder to achieve if employees do not believe they are receiving fair treatment.

As I have said in many previous blogs, a motivated workforce is more likely to go the extra mile if they feel valued as people, this means managers treating them with respect, listening to them, showing consideration to them, recognising their contribution, rewarding their contribution and protecting them from inappropriate behaviour by others at work. In summary treating them with respect and showing them that their effort is valued.

Recognition can simply be saying “thank you” for a job well done, it is not just about money.

However, money can become an issue when there is a clear disparity in pay. While discrimination is illegal and applies to any disparity of remuneration on grounds of gender, race, religion or ethnicity, this is not about legislating for staff motivation.

To be motivated staff need to feel they are treated...

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UK productivity – is it time to move to a four-day working week?

economy productivity Aug 20, 2019

The UK’s comparatively low productivity and how to improve it has long been a source of debate and analysis.

The ONS (Office for National Statistics) has reported a reduction in UK productivity for three successive quarters and according to the Resolution Foundation productivity is now 28% below the average rate before the 2008 financial crisis.  Yet this is a time when employment levels in the UK are the highest they have ever been.

Business productivity has traditionally been calculated by dividing average output per period by the total costs incurred (capital, energy, material, personnel) consumed in that period and is used as a determinant of efficiency.

Productivity in both national economies and individual businesses is much scrutinised by governments, business commentators and business owners as an indication of performance, efficiency and economic health.

All of this is based on the assumption that perpetual growth and competition are the cornerstones of...

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What are the prospects for UK manufacturing?

economy growth productivity Jul 18, 2019

UK manufacturing output growth held steady in the three months to May, according to the Confederation for British Industry’s (CBI) monthly industrial trends survey.

In July, the CBI reported that in the three months to June UK factory output had turned in its slowest quarterly growth since April 2016.

Furthermore, the CBI reported that ten out of sixteen sub-sectors experienced growth with chemicals, food, drink and tobacco being resilient, while car manufacturing struggled.

Confusingly the CBI also reported that order books deteriorated in the quarter.

By comparison the monthly snapshot from IHS Markit and the Chartered Institute of Procurement and Supply showed that activity levels in the UK manufacturing sector in June had dropped to the lowest level since February 2013.

IHS Markit/Cips found that high stock levels, ongoing Brexit uncertainty, a deteriorating economic backdrop and rising competition contributed to the drop in output. Weak export demand amid a...

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Redefining measures of national economic health

economy growth productivity Jul 02, 2019

For almost 40 years the defining measure of a country’s national economic health has been GDP (Gross Domestic Product).

As such, my monthly Key Indicators have focused on various specific aspects, such as oil prices, factory output or investment decisions and the like. This time, however, given that the summer is generally a time to pause and reflect, the Key Indicator considers this notion of how we measure national economic health.

There are signs of a growing resistance to using such a simplistic measure as GDP to compare the relative success of national economies.

For example, Evan Davies, the BBC’s former economics editor argues: “It is barely an exaggeration to say it has been fetishised in economics, despite obvious weaknesses in its capacity to encapsulate a whole economy in a single number” in an article analysing where economists have been going wrong.

National economies are, he argues, both too complex and too theoretically...

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Is an Employee Ownership Trust the way forward to show your workers they are valued?

In May this year Julian Richer gave his employees shares in the company through an Employee Ownership Trust (EOT) whereby they will own 60% of the business.

Announcing the decision, Richer said that he felt it was better to do it now he had reached the age of 60, than to wait until his death, as originally intended. This way, he said, he could ensure the transition would go smoothly.

Richer Sounds, the hi-fi and TV retail chain, since it was set up in 1978 has survived the last five recessions and is regarded as one of the best companies to work for.

Julian Richer’s success as founder and owner can very much be attributed to his commitment to his employees which includes initiatives such as an extra day of holiday on their birthday, heavily discounted access to holiday homes for all employees with over six month’s service, a month’s use of the company Bentley to the store that has scored highest on customer service each month and chiropody treatment and massages...

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What kinds of jobs will be taken over by automation?

In late March, the ONS (Office for National Statistics) published its latest findings on the effects of automation on the jobs market.

It found that some 1.5 million jobs were at high risk from automation, but, tellingly, 70% of these roles were currently held by women. The next most at risk groups were part timers and young people.

The ONS calculates that around 710,000 jobs in the City may be taken over by automated technology, with around 39% of jobs in the accounting, legal and financial services sectors most likely to be automated and that 34% of roles in tax advice could be affected..

Waiters and waitresses, shelf fillers and elementary sales occupations, are most likely to go, all roles defined as low-skilled or routine. Increasing numbers of factory workers are also at risk of being replaced by machines.

Least endangered are medical practitioners, higher education teaching professionals, and senior professionals in education although many of their support functions such...

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Flexible working can foster innovation and creativity

A set of annual awards launched seven years ago is demonstrating the positive benefits of allowing employees to work flexible and part time hours.

The Timewise Power Awards winners for 2019 have just been announced and, as the founders say, they demonstrate the art of the possible.

Among them is Srin Madipalli, a wheelchair user who works 85% full time for AirBnB and combines this with public speaking to raise disability and accessibility issues at forums including the United Nations, Rio Paralympics and the Tech Inclusion Summit.

Chris Bryant, a partner at Bryan Cave Leighton Paisner, works three days a week helping clients from all sectors to prepare for Brexit, and at the same time cares for his daughter and writes for musical theatre. His work has been performed at the Edinburgh Festival and is now being developed for a nationwide tour.

Amy Haworth, a director working on an 80% contract for Deloitte, combines her working life with 60 to 80 performances a year as an international...

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The tide may be turning to improve workers’ rights

employees productivity smes Mar 14, 2019

In December Christina Blacklaws, the president of the Law Society, warned in a letter to the Financial Times that employment law on workers’ rights had not kept pace with the changes in the way people work nowadays.

Her concerns were primarily for people working in the so-called ‘gig’ economy after the High Court ruled that Deliveroo riders had no right to bargain collectively.

Her letter said: “Case after case highlights concerns about how the workplace rights of employees, workers and contractors are affected by a law not fit for purpose and not easily understood. The lack of certainty means people are having to go to court to clarify their rights.”

Perhaps in some areas the situation is being clarified by case law such as the recent Supreme Court ruling re Pimlico Plumbers that a sub-contractor cannot be classed as an independent self-employed contractor for employment law purposes and should be treated as a “worker” who is entitled to...

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Is your business barely managing and if so why?

brexit productivity smes Feb 12, 2019

Evidence suggests that many UK businesses are barely managing when compared to foreign-owned businesses of equivalent size operating in the UK.

At the moment it is easy to blame everything on the uncertainty surrounding the outcome of the UK’s negotiations to leave the EU, especially as political positions remain entrenched and seemingly irreconcilable with just 40 or so days to go before the deadline.

As the most recent productivity figures from the ONS (Office for National Statistics) showed, productivity and output per hour fell to their weakest in two years at the end of 2018, prompting FSB (Federation of Small Businesses) Chairman, Mike Cherry, to opine: “”Productivity data demonstrates exactly what a prolonged period of uncertainty does to an economy. Small business confidence has dropped to its lowest point since the financial crash, with four in ten firms expecting their performance to worsen.”

Of course, Brexit has prompted more businesses to divert...

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