Driving Productivity Upward |
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Productivity is the key driver in making our economy grow and our companies hum. So when the U.S. Department of Labor reports that worker output fell in the first two quarters of 2011, the first back to back decline since the crash of 2008, alarms sound. In fact, many economists now believe productivity in the U.S. is likely to limp for the foreseeable future.
Why? Companies continue to pull back spending on new equipment, technology and labor-a perfect cocktail for killing productivity. There are lots of reasons for doing this, but the results are still the same-and that's the problem.
While each of us cannot cure the overall economy, we can address productivity in our own organizations. As I noted in writing Uncomplicating Management, there are four strategies that will increase productivity in your organization:
- Invest in technology: technology increase labor productivity by increasing efficiency, reducing errors, and allowing people to focus on essential activities.
- Train your people: while many organizations are pulling back here, a 10% increase in the average education of workers is associated with an 8.6% increase in productivity (National Institute of Literacy).
- Focus on teamwork: apply teamwork rather than emphasizing individual contributions to many work processes has proven to accelerate productivity while reducing cost of production.
- Emphasize continuous improvement: if you simply improve your operation by 1% each day, in 70 days, you're twice as good (Alan Weiss).
Productivity growth is the key to profitability and survival in these tough economic times. You have the ability to control it in your organization.
What steps are you taking now?
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MODEST SALARY INCREASES FOR 2012 |
Salaries will increase by a median of just 2.8% in 2012, up slightly from 2.6% in 2011 and 2010, according to Towers Watson Data Services.
Analysts for several other research organizations also predict moderate wage growth. For example, researchers for WorldatWork and Hay Group expect a median increase of 3% next year. Analysts for the Society for Human Resource Management's custom benchmarking service project a median salary increase of just 2.3% for 2011-12. Expect greater increases for star performers.
Merit increases will vary depending on geographical location and position in the company. Begin addressing your compensation plans for 2012 now. |
| SEMINAR: IMPORTANT HR ISSUES |
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Join me when I provide small business owners the tool to manage, engage and inspire their staff to achieve higher productivity and extraordinary results. Some of the topics will include hiring and retaining great people, understanding employment laws, getting people excited about their company, and addressing poor performance.
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| SPEAKING ENGAGEMENTS |
 | | Mainebiz Momentum Conference |
I recently spoke before the Mainebiz Momentum Convention and the MassALFA Annual Conference--both on the topic of Succession Planning.
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