The UK has had a perennial productivity crisis since the financial crash in 2007. Figures from the Office of National Statistics have shown that productivity in the UK has reached an all-time low.
A ready supply of cheap overseas labour since 2007 has meant that the UK has struggled with its productivity and continues to do so. This, however, will need to change in the post-Brexit era as this ready supply of labour no longer comes into the UK to work. Other financial experts have said that also the rise in self-employment and the “long tail” of poorly run small businesses have also contributed to this down trajectory in productivity within the UK.
As wages rise, experts have warned that this will only lead to further inflation rises if it is not followed by a sharp rise in productivity; however others have said that wage rises will automatically correspond with productivity rises as employers will invest in more labour-saving training in an attempt to beat out other “long tail” business competitors.
How Can The UK Become More Productive?
The pandemic might provide exactly what the UK needed in the terms of a jolt to improve productivity within its borders. With many companies having to shut down or become smaller due to complexities around the pandemic, it provided businesses with a chance to start again.
In this sense they had a chance to re-optimise and improve from the first time around, and in that sense hopefully become more productive and efficient with their work. Many people decided to start new and original businesses during the pandemic and this could rise productivity levels and technologies that have been invested in for working from home might provide a much needed opportunity for UK employees to be happy with their place of work.
The pandemic and investment from the government is, however, only one part of the puzzle of fixing the UK’s productivity problem. There are other ways that you can make sure that you and your business stay productive and ahead of the competition as those around you struggle.
Mia Naumoska, Chief Marketing Officer at Chanty commented on this: “The financial crisis of 2008, Brexit, and most recently COVID, all played their part in creating the UK’s productivity crisis. Although all advanced countries suffered this economic and productivity hit, the UK was by far the most affected. Genuine, urgent reforms are necessary for the UK to create a bulletproof future of productivity and economic growth.
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These revolutionary reforms should be implemented at the core of the UK system to be truly effective. Among the possible plans of action is digitisation at every level of economic activity, huge emphasis on the education and labour systems, implementation of remote/hybrid business models. On top of that, the government has to step up and create new policies that support investments, privatisation, and reduction of income tax to grant more security to the British workers.
Although the list of potential reforms is pretty clear, choosing the most effective plan of action is far from easy. However, the UK needs to decide and fully commit to its new course of action to realise its true productivity potential as a powerful nation.”
How Can Your Businesses Be More Productive?
There is no sure-way in which to raise productivity levels in any organisation. However, there are steps that can be taken by managers and CEOs for example to increase the chances of productivity lifting across any company and organisation, no matter its scale and size.
Use Tools To Automate and Manage Tasks Effectively
One thing that businesses might struggle to deal with is the amount of tasks that are on their plate. If productivity levels are already low then not managing your tasks efficiently will lead to less tasks being completed and therefore a struggling company. Nowadays, there are so many online tools and software that allows you to both automate and organise tasks. There are tools for task management, live chat, email automation and more; using these tools for your business will make your company more productive and your employees work better as a collaborative team.
Do Not Be Afraid To Delegate
Small businesses can often struggle because some of the people in important positions are not willing to delegate tasks. This means that employees are looking for work to do whilst executives are struggling with their workload. Learning to delegate efficiently and effectively can make your business and your employees much more productive and your business will run more smoothly than ever before.
Many businesses can be afraid of embracing change when they grow bigger or unfortunately have to downsize, but embracing change can make your company more productive and efficient. Understanding where your strengths and weaknesses are as a business will make employees understand their tasks better and therefore overall make your business more productive. Although the UK may be struggling with their productivity problem, you can put some steps into action to make your business more productive today.