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Addressing the UK's Productivity Challenges: Insights from Belinda Johnson at Worklab Ltd

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leslie-estes
24 diapositives · 371 Views · Nov 05, 2014

In September 2014, Belinda Johnson of Worklab Ltd explored the pressing issue of the UK's productivity shortfall compared to other G7 nations. Key factors contributing to this crisis include low pay, employee dissatisfaction, and the evolving nature of work. Over 21% of UK employees earn below the minimum wage, while many are disengaged and seeking new opportunities. As businesses transition to outcomes-based working and increasingly rely on AI and automation, addressing skills gaps and employee sentiment will be crucial for improving productivity and fostering innovation.

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  1. Looking Forward.. Belinda Johnson – Worklab Ltd September 2014

  2. Looking forward towards… ..the potential impact of the UK’s (World’s) productivity issue

  3. The UK’s productivity issue… Shortfall in UK’s productivity compared to other G7 countries • Source: ONS

  4. The UK’s productivity issue… To what extent is worker sentiment a major contributor to this productivity shortfall?

  5. The UK’s productivity issue… • One in five employees (21%) in the UK earn below £7.50 an hour – two thirds of the UK median wage – putting them under the official OECD definition of low pay. Source: Resolution Foundation

  6. The UK’s productivity issue… The minimum wage “was put in place as a safety net” but, in many instances, it has now become a standard… “Too many employers are seeing that as the level, in fact it's the national wage, not the national minimum wage.” Norman Pickavance, NED - HMRC and SFO & former HRD Morrisons According to the ONS, 3.1m people want or need to work more hours/earn more money

  7. The UK’s productivity issue… Source: Kelly Global Workforce Index: Career Development August 2014

  8. The UK’s productivity issue… Source: Kelly Global Workforce Index: Career Development August 2014

  9. The UK’s productivity issue… Source: Gallup

  10. The UK’s productivity issue.. Source: Kelly Global Workforce Index: Career Development August 2014

  11. The UK’s productivity issue… • Workers: • Continually concerned about earnings/outgoings… • Disengaged and unhappy… • Continually looking for new opportunities…including new ways of working… • Many are working, but not serving.

  12. Additional challenges.. • Less money available to fund public services • Harder for legacy commercial enterprises to make same levels of profits • New technologies enabling unprecedented levels of innovation – and competition.

  13. The productivity crisis will bring ‘total resource’ into view

  14. Of note amongst ‘total resource’.. Officially, c. 42% of the UK workforce works outside the legacy concept of fixed, full-time employment… Source: ONS Labour Market Statistics series

  15. The productivity crisis will drive outcomes-based working

  16. …the shift to outcomes based working • Employers: • Challenged with sourcing (and being responsible for growing) newly emerging skills.. • Looking for a return on their investment in people. • Will increasingly consider AI and automation alternatives. • Being impacted with significant costs associated with rising churn..

  17. …the shift to outcomes-based working • Time taken for new/replacement workers to reach optimum productivity: • Time taken to reach optimum productivity, based on source: Source: Oxford Economics/Unum

  18. …the shift to outcomes based working • Cost of replacement / new worker (£25k+ salary) in large organisation = >£30,000 Source: Oxford Economics / Unum

  19. …the shift to outcomes based working • When starting to evaluate ‘total resource’, hirers will realise that there are an increasing array of new sources of talent/resource available and new ways of ‘work’ being delivered…. • Statement of Work assignments • On-line working / on-line services • The fragmented, networked enterprise • AI / Robotics… • …all work on the principle of guaranteed/known outcomes.

  20. …the shift to outcomes-based working Source: SIA European Contingent Buyer Survey 2013

  21. …the shift to outcomes-based working Matt Cooper, oDesk REC: The Client Paradox “Those who are successful are those who view it akin to starting their own business, where the necessity is to sell yourself, market yourself to prospects, manage your work efficiently and do what you say when you say you are going to do it.” “This is a new type of professional, a new workforce, to whom it is totally acceptable to work to outcomes and to be hired – or not – based on their reputation for delivery.”

  22. …the shift to outcomes-based working % workers with experience of on-line working 41% of large buyers in 2013 said they were aware of on-line staffing, up from 32% in 2012 Source: SIA Contingent Buyer Survey 2013 % workers interested in on-line working “The shift reflects a change in mind set as much as in work practices….employees (are) more ready to accept an element of risk in their pay in return for improved output.” Kelly Global Workforce Index 2013

  23. The impact of outcomes based working.. Why, if workers are increasingly going to be rewarded on outcome, should the recruitment industry continue to warrant the same reward for their simply turning up for work? Task-orientated working, outside sensitive areas, has eradicated the need for traditional forms of vetting/checking/worker validation. A broader shift to outcome-based working will bring with it a reform in what we check for…and what the industry can subsequently charge for.

  24. Contacts Belinda Johnson owner - worklab e:belinda.johnson@work-lab.co.uk T: @worklabinsights m: 07771 534365 www.work-lab.co.uk