Why The Drop In Productivity Is Not So Bad After All?

Post written by Marlon Ribunal.
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“Productivity falls in the spring by largest amount in nearly 4 years while labor costs rise.”

San Francisco Examiner – 2 September 2010

With more work load and leaner workforce, drop in productivity is inevitable. We might have productivity successes individually but facts don’t lie – productivity in general is falling, at least in the United States. The San Francisco Examiner states that “American companies experienced the largest drop in workplace productivity this spring in nearly four years and a rise in labor costs, suggesting businesses may no longer be able to squeeze more work out leaner staffs.” I believe this is not only happening in the United States as the situation has a lot to do with the global economic meltdown.

Bad News To Companies

According to the San Francisco Examiner news, “Productivity dropped at an annual rate of 1.8 percent.” And that’s probably just the beginning if no drastic measure is to take place. I don’t know how that rate translates into tangible work output. What I know is that it is bad to the businesses. Any drop in productivity, no matter how small or big that drop is, can have serious consequences in the company’s standing. And you probably know by experience what happens when one’s productivity lags. Aside from failed goals, non-productivity can negatively impact your overall performance.

Why Is That A Good News For You

The San Francisco Examiner news adds, “Unit labor costs rose 1.1 percent, the biggest rise in labor costs since late 2008.” Now we have lower productivity and higher labor costs. I don’t know how but there seems to be a correlation between the two statistics – when productivity goes down, labor costs tend to go up. According to the news there’s a belief that “companies need to start hiring more workers because they can no longer make gains from their existing work force.” There will be a number of opportunities waiting for those looking for a job or looking to make a lateral move. You can do the following to prepare to meet those opportunities when they finally knock at your door:

Sit Back And Relax

If the threat of layoff is still lingering in your head, stay positive. There will be opportunities in the horizons. Laying off more people is not a logical solution to bleeding profits. Lean workforce cannot get any leaner lest it could cause more loss on profit. Continue on improving your productivity by:

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