Labor productivity is increasing, but at what cost?

Labor productivity is increasing, but at what cost?

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Diving certificate:

  • Employee productivity is increasing – but working hours are also longer, putting them at risk of burnout and low morale. According to research by Robert Half published on August 19th.
  • Nearly 7 in 10 managers say their employees’ productivity has increased year-on-year, attributing this to improved management practices, enhanced employee training and the adoption of new technologies, including generative AI. Employees cited hybrid work models, flexible work schedules and compressed week schedules as ways to help them feel more engaged and productive.
  • What is particularly noteworthy is that more than a third of the employees surveyed said they are working longer hours compared to the previous year, according to Robert Half.

Diving insight:

The fact that higher productivity is associated with longer working hours may be a cause for concern, Dawn Fay, operations manager at Robert Half, said in a statement.

In 2023, studies showed that worker productivity was declining – and some blamed this problem to remote work in the broader sense.

However, other studies and experts assume that productivity losses are due to a number of complex aspects: IT issues due to remote working, ongoing uncertainty related to disruptions due to COVID-19, and general burnout related to these issues.

“While technological advances and improved processes have led to greater efficiencies, it is critical to keep an eye on employee wellbeing and burnout,” said Fay.

Similar to Robert Half’s suggestions, other survey results suggest that flexible working hours can prevent burnout and promote employee retention. What this looks like can vary. An analysis by Flexa showed that job seekers prefer roles that offer “core working hours”The start and end times of working days may vary as long as the core working hours specified by the company are adhered to.

A report from ResumeBuilder.com states: 3 out of 4 employees would change jobs to work a four-day shift – another suggestion from workers surveyed by Robert Half.

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