Most countries around the world are grappling with the lack of growth in productivity. The developed western economies are generally slowing down with growth rates much lower than even a decade back. A vicious cycle meanwhile has emerged at several developing ones due to low revenue growth. Most policy makers’ drafts on raising productivity levels have two major shortcomings. One is that they are often abstract and theoretical. Secondly, they are often guilty of only exploring a single angle, so lack a holistic focus. BCG has thus developed a framework that looks at three levels- individual, company and the national level. This BCG Productivity Framework has outlined ten key drivers to improve labour productivity. At the individual level skill upgrades need to be taken up. Companies need to be acutely aware of the capital in hand and the domain knowledge requirements so it can plan its talent recruitment strategies accordingly. Technology needs to be aligned to the workforce structure and adequate research needs to be professed. At the national level, infrastructure, economic diversity and sound labour regulations are of utmost importance. Universal education needs to be provided to its population.

Source:https://www.bcg.com/industries/public-sector/how-governments-can-boost-labor-productivity.aspx?linkId=53948338&redir=true

Uploaded Date:24 July 2018