Essential pieces of the Productivity Puzzle No 1: Build your skill base
Improving productivity has become a top priority for the UK. But what are the factors that make the biggest difference? This article from the productivitypuzzle.com website discusses the importance of skills.
Some sources are claiming that productivity improvement will only be achieved through raising the levels of skills in UK employees.
The automotive industry, for instance, is seen to be a leader in productivity. But there are concerns that it lacks engineers and R&D investment.
However the impressive productivity numbers, UK auto producers are covering up a shortfall in R&D investment and the number of skilled engineers on offer. A new report ranks the UK 13th out of 24 countries for Government investment in the sector. Top performing countries like the USA, Germany or South Korea spend between 0.8 per cent and 1.0 per cent of their GDP on R&D. Almost twice the UK spend of just 0.5 per cent.
Iain Wright MP, Chair of the Business Innovation and Skills Committee, cited education and skills a fundamental to helping the UK solve the productivity puzzle
“Getting to grips with the UK’s productivity puzzle is crucial to our economic competitiveness, and to improving workers’ living standards,” he wrote in a recent report. Education and skills policy has an important role to play in boosting productivity and living standards. It is vital that there is closer alignment between the requirements of business and the skills and capabilities our education system provides to young people.
Similarly, a report from the CIPD recently criticised businesses for failing to invest enough in their people.
In a survey of 930 organisations the CIPD found that despite two years of solid economic growth, 21% of the organisations surveyed for our report are still stuck in ‘survival mode’ and aren’t making the necessary investments in equipment or people to boost their productivity.
To read the CIPD report click the link below
To read the about the automotive industry report, click below
To read the new research from The Education Committee and Business, Innovation and Skills Committee click the link below
Author: Frank Nigriello
Director of Corporate Affairs at Unipart Group Ltd