Home > News > November 2004 > 26-Nov-2004

Britain's bosses pass the buck for productivity problems, says report

Senior managers across the country expect huge increases in their organisations' productivity in the next five years - but accuse their peers of undermining Britain's progress and leaving it languishing behind its competitors. That's the finding of new research carried out by the Future Foundation on behalf of Investors in People

The research, conducted amongst nearly 700 senior managers across Britain, found that respondents anticipate an average productivity increase of 23% in their organisations in the next five years. However, when asked to consider the country as a whole, only one in five believe that British organisations focus enough on improving productivity, and a clear majority (55%) forecast that productivity will continue to lag behind that of international competitors. Furthermore, 56% think substandard management skills are a major contributory factor in these productivity problems.

Nearly 90% of those surveyed agree that more effective use of employees is the best way to increase the country's productivity. And, over 75% of senior managers say that effective development of employees will be vital or important to the future productivity of their organisations.

"Britain is employing more people than ever before, but the country still lags behind competitors in terms of employee productivity," said Ruth Spellman, Chief Executive of Investors in People. "Although three quarters of senior managers make the link between effective employee development and increased productivity, they are failing to convert this understanding into action. It seems that senior managers still see productivity as someone else's problem, which is disturbing and potentially damaging, not just to their organisations but to Britain as a whole."

"Failing to apply a critical eye to their own organisations means senior managers risk undermining their ability to deliver the growth they are predicting. Britain's boardrooms must take action now to prioritise employee development in the face of other demands if they are to achieve their business goals and help the country rise to its productivity challenge."

Paul Flatters, Chief Executive of the Future Foundation, commented: "The research shows unexpectedly high levels of confidence within British business. But it also shows lack of clear consensus about how to turn this optimism into output. Without boardroom commitment to take both individual and collective responsibility for closing the productivity gap, this optimism may prove illusory and Britain will continue to lag behind the competitors it is chasing."

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