Despite this, the 2012 Telstra Productivity Indicator shows that while 80 per cent of Australian businesses identify employee efficiency as an ongoing priority, only 25 per cent are making moves to quantify, assess and improve it.
The survey, which examines the views of 387 private enterprises and 109 government organisations, also highlights that a failure to take productivity seriously can see businesses forfeit market share and create major barriers to growth.
CEO, mentor and executive coach Prakash Menon believes that this inability to recognise the true impact of productivity stems from a lack of understanding about employees’ motivations and goals. Menon, who previously served as the logistics director for Myer, says that the contemporary employee is driven by “learning opportunity” and that employers who fail to address this will see a slump in productivity.
“While it’s true that employees are a company’s biggest asset, if your staff aren’t learning anything new, it’s common for productivity to peak after the first or second year,” he says. “This can often result in high staff turnover and employee absenteeism – two important signs that employers are losing the battle when it comes to employee efficiency and productivity.”
Reaping what you sow
Menon says that while most businesses advocate the value of employee development on a surface level, there is often a major disconnect between the values of an organisation and the culture it fosters. He suggests that businesses that cultivate knowledge and thought leadership, particularly in the case of top-tier or executive-level staff, are those best placed to reap productivity gains.
“US company Cisco is a great example of this,” says Menon. “They pay employees to attend and speak at industry events, put together presentations and position themselves as a brand. As a result, they experience much greater productivity levels and higher rates of employee retention.”
