A recent report by Mario Draghi highlights that Europe is lagging behind the United States in terms of labour productivity. This is a concerning trend, especially for rapidly evolving service organisations that need to compete in an ever-changing market.
For operations managers and resource planners, it is essential to implement strategies that enhance labour productivity. In this blog, we discuss three initiatives you can take to improve productivity within your organisation.
1. Invest in technology and automation
The first step towards improving labour productivity is investing in technology and automation. The US has an advantage in this area, and European organisations must close this gap. By automating processes, employees can focus on strategic tasks rather than repetitive work. This not only saves time but also increases employee satisfaction.
How to implement technology:
- Identify repetitive tasks: Start by mapping out tasks that are frequently repeated and can be automated.
- Choose the right technology: Research software and tools that are specifically geared towards your industry and can enhance efficiency.
- Train your staff: Ensure that your teams are well-trained in using new technologies. This maximises the effectiveness of the implementation.
Example:
An organisation that successfully achieved this is a customer service company that implemented chatbots. This led to a significant reduction in the turnaround time for customer queries, allowing employees more time to handle complex issues.
2. Flexible work policies and remote working
A second initiative is to introduce a flexible work policy, including remote working options. The pandemic has demonstrated that many employees can be just as productive, if not more so, when working from home. By offering the opportunity to work remotely, organisations can improve work-life balance and provide employees with greater autonomy.
Benefits of a flexible work policy:
- Increased employee satisfaction: Employees who have the freedom to choose their workplace are often more content and motivated.
- Reduced overhead costs: A decreased need for physical office space can lead to significant cost savings.
- Access to a broader talent pool: The possibility of remote work allows for attracting talent from various regions.
Example:
A company that expanded its remote work policy achieved a 15% higher productivity level among employees working from home. This demonstrates that flexibility benefits not only the employee but the organisation as a whole.
3. Continuous training and development
The third initiative is to foster a culture of continuous training and development. In a rapidly changing world, it is crucial for employees to keep developing their skills. By offering regular training sessions and workshops, you can ensure that your teams stay informed about the latest trends and technologies in your sector.
How to implement training:
- Create a training plan: Establish a plan identifying the skills necessary for the future of your organisation.
- Provide a variety of learning methods: Ensure a mix of online courses, workshops, and on-the-job training to cater to different learning styles.
- Encourage knowledge sharing: Motivate employees to share their knowledge and experiences with colleagues, which can lead to new ideas and innovations.
Example:
An organisation that has successfully implemented this is a tech company that holds a “learning day” every month. This has resulted in increased creativity and productivity, as employees have time to develop new skills and experiment with new technologies.
Conclusion
It is clear that Europe, and particularly rapidly evolving service organisations, must take steps to improve labour productivity and compete with the US. By investing in technology and automation, embracing flexible work policies, and promoting continuous training and development, organisations can boost their productivity and gain a competitive edge.
As operations managers and resource planners, it is your responsibility to consider and implement these initiatives. The future of your organisation depends on your ability to adapt and innovate in an ever-changing market. Start applying these strategies today and see how your organisation thrives in a competitive world.
The use of resource planning software plays a significant role in this. It allows you to measure productivity and therefore the effectiveness of your initiatives. Specifically concerning training and development, resource planning software indicates what the future demand will be from projects. Based on this, you can effectively train your workforce.
