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by Dennis DePeiza
When the term productivity is used to describe the performance of labour, it is usually associated with the measurement of the output of workers. Employers sometimes used different means to measure the performance of their employees. Regardless of the measurement used, the bottom line remains that the employer is concerned with the efficiency and general aggregate output that is achieved or recorded based on expectation, targets and goals which the company has set.
The measurement of productivity is said by experts to fall into five categories. These are personal productivity, workforce productivity, sector productivity, team or department productivity, national or global productivity.
It can be therefore misleading when the term of worker productivity is used in a general sense to apply to the overall workers’ performance. This is usually the problem when generalisations are made, as this tends to blanket all workers; often without the proper analysis being completed, in the absence of a basis for making a determination.
It is well established that economists pay particular attention to national or global productivity. Economists have a vested interest in the gross national output, as this is essential to the measurement of the growth of the economy. They are joined by employers in attaching efficiency as a measurement tool, as this is considered to be fundamental to positioning in order to compete in market; with respect to distribution of goods and services, so as to be able to generate high profits.
It is to be expected that employers would have a vested interest in workplace productivity, since this addresses the aggregate output or productivity of the employees within the enterprise. For them, this is the effective gauge of the performance of their business. For the consumer’s point of view, the high level of output by employees which sees the enterprise benefitting significantly, there is the expectation that there would be a reduction in prices of goods and services.
There is a greater level of expectation on the part of the employees, as they look forward to benefitting from the fruits of their labour, through greater disposable income. On having secured substantial financial returns, employers would be expected to share part of their excess earnings with their employees. This could take the form of bonus payments, percentage payments made on employee’ share holdings, and moreover, improvement in wages and salaries.
There is much satisfaction to be had when high levels of productivity are recorded in a department or by a team of workers. Such performance should never go unnoticed as it is a key factor in the motivation of employees.
Employers should use their good sense of judgment and appreciation, by offering monetary rewards, especially in the instance where the enterprise has gained financially from the labour of its employees. When it comes to sector productivity, this may prove a bit more difficult in determining an across-the-board incentive payment for all employees.
The difficulty comes with the assessment, inasmuch that all enterprises may not have performed at the same level, albeit that various reasons may apply.
This brings us to taking a look at personal responsibility. This is a decisive factor in the equation of productivity. Personal responsibility is about what the individual can attain on a daily basis in their personal and work life. This can be dependent on the prevailing circumstances in the individual’s life, inclusive of domestic issues, health and wellness, the workplace environment and conditions of work. Good employers by having good workplace policies in place, observing good workplace practices, maintaining an interest in the welfare and interest of their employees, can make a fundamental difference in the attitude, disposition and motivation of their workers.
It is to be regretted that productivity is seen to be measured on the narrow basis of one’s functionality. It should be considered that there are a number of Key Performance Indicators (KPI’s) which ought to be put into the mix, that should relate to the type of work or business to which they apply. Most employers tend to focus on the concept of value for money. That speaks to the wage or salary paid for the work to be done. This is understandable.
However, employers should satisfy themselves that they are providing the resources needed to get the job done. There should also be consciousness that their expectations, requirements and demands are not excessive.
Common measurements used by most employers would include daily product production, sales generated at the end of the day and business transactions completed. These can be applied to outcomes within the manufacturing sector, wholesale and retail businesses, the services sector and aspects of the hospitality sector. The position of employers that they are to pay attention to the bottom line cannot be faulted, as such is the nature of a business investment.
What seems to escape the attention of employers, is that the way they treat to their employees, the poor working conditions that exist and the low levels of wages and salaries paid, do little to stimulate and motivate workers to up the ante on their output. It would seem that some employers are not moved to address these concerns, and to do so in the interest of achieving the goal of maintaining a profitable and sustainable businesses.
It would appear that some employers are not conscious of the drawbacks that come from the incidence of the constant turnover of staff. This can be a significant factor in reducing levels of productivity, as new entrants now have to go through the paces of learning the job and even being exposed to training. Interesting enough, in some instances, the replacement of workers can sometimes be challenging, as there is a problem in finding persons with the required skill sets.
Dennis DePeiza is a labour & employee relations consultant, Regional Management Services Inc. www.regionalmanagementservices.com
