Australia faces massive productivity deficit

Filed under: [Retention & Motivation]

Australia is currently facing a massive shortfall in productivity due to unengaged employees, according to a new report.

The latest Ernst & Young Australian Productivity Pulse - released May 6 - has revealed that Australia currently fails to realise upwards of $305 billion worth of potential productivity every year.

That amounts to around $26,300 per worker and indicates that many employers may not be doing everything they can to unlock the true potential of their staff.

Ernst & Young Oceania advisory leader Neil Plumridge has suggested that it is time that we "get our acts together" in order to advance the potential of the country. 

"Employees from all levels in organisations, and across all sectors, are saying that they could be working 20 per cent smarter - not to be confused with 20 per cent harder," said Mr Plumridge.

"If just five per cent of this potential was unleashed, the ASX200 could again approach and perhaps exceed the magical 6000 level last seen in 2007."

The study also revealed that nearly a third of participants agree having a culture that values staff and wellbeing can improve general productivity.

That statistic is indicative as to the value of workplace health checks, which can help ensure the wellbeing of employees and boost team performance.

Other factors which were named as potential productivity boosters included matching up employee's skill levels with their roles and improving process efficiency.

26 per cent of respondents said that another key factor which could improve productivity was ensuring that the best employees are attracted to the organisation, and that turnover of these top employees is reduced.

This is another area where work health checks can be of value, as these are seen by employees as an additional perk that might make them more likely to stick with their existing employer.

Mr Plumridge went on to say that the answer to unlocking this country's additional productivity lies "in having the right culture, the right people in the right jobs, and the right systems".

"There is anticipation that we’re entering a period of productivity growth, but without the tools to tap into and realise its potential, our complacency will place us squarely where we found ourselves in more prosperous times," he said.