How can organisations solve the productivity puzzle?

We’re falling behind. There’s a yawning gap in productivity between Britain and the rest of Europe, commonly referred to as the ‘productivity puzzle’. Indeed, it seems the UK is missing a piece of the jigsaw. It all started a short while before the 2008 financial crisis, when our productivity began falling behind other countries. We also experienced a comparatively more severe decline throughout and the impact of this plummet can still be felt today.

After the crisis, employment recovered well; in fact, the growth of employment exceeded the more slow-to-recover growth in demand. And yet, productivity is still somehow lagging. Why?

What exactly is productivity and why would it matter to HR and L&D?

Productivity refers to the efficiency of a process. It’s measured by how much we get out from what we put in, or the input-to-output ratio. Remember those playdough spaghetti-making machines you had as a kid? You get back what you put in, with an added benefit (you now have spaghetti!).

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