Many of us saw the recent announcement by the Bank of Canada, which raised alarm bells about the levels of productivity in this country. Productivity is important, as it acts as a hedge against inflation; productivity means growth, leading to more jobs, and higher wages. In this post, we'd like to explore what these stats mean for a typical employer - and what can be done about it.
The State of Low Productivity:
Before delving into solutions, it's crucial to understand the scope of the issue. Low productivity poses a significant challenge for businesses across industries in Canada, and erodes our competitiveness on the global stage.
According to a study by the Workforce Institute, 85% of employees report they're not engaged or actively disengaged at work, leading to a staggering loss in productivity. Additionally, research by Gallup reveals that disengaged employees cost Canadian companies approximately $45 billion to $55 billion in lost productivity each year.
Closing Skill Gaps:
One of the primary drivers of low productivity is the presence of skill gaps within the workforce. In today's rapidly evolving business landscape, employees often find themselves struggling to keep pace with technological advancements and changing job requirements. However, targeted training programs can bridge these gaps effectively.
Research by the Association for Talent Development (ATD) reveals that companies that offer comprehensive training programs have 218% higher income per employee than those with less comprehensive training.
Empowering Through Education:
Education and training initiatives provide a powerful avenue to address the root causes of low productivity. By equipping employees with relevant skills and knowledge, organizations foster a culture of growth and development, leading to enhanced performance and productivity.
According to a survey by LinkedIn, 94% of employees would stay at a company longer if it invested in their career development.
Fostering Innovation:
Innovation serves as a catalyst for productivity growth, driving businesses forward in a competitive market. However, fostering a culture of innovation requires more than just a creative spark; it demands a workforce equipped with the necessary skills and knowledge to bring ideas to fruition.
A study by PwC found that 79% of CEOs are concerned about the lack of essential skills in their workforce, highlighting the critical role of education and training in nurturing innovation.
Boosting Employee Morale and Engagement:
Employee morale and engagement play a pivotal role in determining productivity levels within an organization. Investing in education and training communicates to employees that their growth and development are valued, leading to increased job satisfaction and commitment.
According to a report by the American Society for Training and Development (ASTD), companies that offer comprehensive training programs enjoy a 24% higher profit margin than those who spend less on training.
Conclusion:
In a world where productivity reigns supreme, organizations must leverage every available resource to stay ahead of the curve. Employee education and training stand as potent tools in this endeavor, offering a pathway to address the underlying causes of low productivity while fostering a culture of growth, innovation, and engagement.
As the statistics show, investing in employee development isn't just a strategic move; it's a fundamental driver of success in today's competitive landscape.
So, let's empower our workforce, unlock their full potential, and propel our businesses to new heights of productivity and prosperity. If you’d like to understand how your company can take the first step to solve this issue, Benefi has solutions!