Employees emerge as biggest factor impacting productivity
Nearly half of organisations across New Zealand are hiking salaries and introducing flexible work arrangements in a bid to attract and retain the right talent, which they said are major drivers to productivity.
In a survey among 701 decision makers, telecommunications company 2degrees revealed that 48% of employers in New Zealand are increasing salaries to attract and keep the right qualified labour in their business. Another 43% said they introduced flexible working, according to the report.
"Increasing salaries and introducing flexible working continue to be key initiatives to attract and retain qualified labour this year," the report said.
Other efforts implemented by organisations to recruit and retain talent this year include:
- Increased training (36%)
- Offered more perks (23%)
- Increased leave options (17%)
Employees as drivers of productivity
The findings come as employers also revealed that their staff as the biggest factor impacting productivity in the workplace.
"Businesses reference how upskilling/recruiting highly skilled staff can increase productivity, while on the other hand, unmotivated staff and retention can create barriers," the report said.
To boost productivity, employers are implementing people-centred measures such as motivating staff through initiatives (41%) and employing more highly skilled people (37%). Other efforts to achieve high levels of productivity include:
- Better use of technology (35%)
- Internal process improvement or outsourcing (25%)
- Automating processes (24%)
- Changes to supply chain management (22%)
- Better inventory management (17%)
- Acquire a new business (8%)
The findings come as productivity levels across businesses remained the same for more than half (51%) of organisations this year.
Andrew Fairgray, Chief Business Officer at 2degrees, said businesses looking to get ahead is to increase their productivity and deliver more value with their resources.
"Attracting and holding onto the best staff will be top of the list for most businesses, and making sure that modern technology tools are reducing friction and adding value shouldn’t be far behind. The combination of these two factors will be how businesses can set themselves apart and thrive long term," Fairgray said in a media release.
