Budget highlights productivity fears
Much of the post-budget analysis has centred on a tax on sugary drink. The real issue affecting the UK’s economy, which businesses will be focussing on in the coming days is the country’s productivity. Can remote working and hot desking be key ingredients for success?
Productivity is seen as the key indicator of a thriving economy. It measures how much output is produced per hour by every worker. However, it has been consistently disappointing since the credit crunch years. Alarmingly, the Office for Budgetary Responsibility (OBR), assumes this will not bounce back very soon. Indeed, Robert Chote, Chairman of the OBR, has described the productivity downgrade as the most significant part of his report. Of course, as economists will tell us, much of it is to do still with the shock caused by the global recession a few years ago.
Cloudbooking believes that there is much that can be done in the UK to help make us far more productive. The good news though is that we are still one of the world’s richest economies and unemployment is low. The bad news, however, is that businesses need to address why we produce on average 30% less per hour than our German and French counterparts. It is well-documented by economists the main reasons we are less productive is due to a poor transport infrastructure, which cannot easily be overcome in the short term. The other two reasons can be dealt with proactively now.
Poor management and lack of technology are things we can tackle. For instance, Germany has much more research and development staff embracing innovation. 17% more in fact. Wouldn’t it help the UK if we had more? We at Cloudbooking know that stats can paint a distorted picture and we are fortunate that our organisation deals with some of the country’s most forward-thinking businesses. Our clients have a thirst for knowledge, innovation and are focused on staying ahead of the competition.
They know that technology and management skills are crucial to their own business’s productivity and they embrace it. Highly skilled staff, remote working and hot desking are some of the key ingredients to success. It’s what’s needed for the benefit of the UK economy.
Learning, embracing change and thinking smart is what growth is all about. After a downbeat budget, UK businesses need reminding of this seemingly transparent truth.