Financial Services Could Help Flagging UK Productivity

28th March 2018.

Pay is failing to rise in line with productivity and with the eurozone in a productivity revival, the UK is set to lag behind our competition.

The British economy risks splintering itself further as parts of the country fail to match pay rises with increases in worker productivity, leading to decreases in self-worth amongst workers. According to research conducted by thinktank Localis, the areas suffering most have been reported to be inhabited by constituents who voted to remain in the EU, prompting further division between political stances. While worker output improved near the end of 2017, a continued dissatisfaction amongst workers could lead to a dramatic fall in overall productivity and economic health.

As growth within Europe overtakes the UK and wage growth struggles to keep up, reviving productivity becomes more important. At the Credit Protection Association, our members use our debt recovery services to grow their business or to merely improve it. By uncovering some extra cash, business owners can afford new machines or technology, more relaxing break areas and automated systems; all giving their workforce a bit of a boost.

Two-thirds of 1,641 people polled for the report said they felt little to no benefit when the national economy grew or when their employer did well financially. Half said they felt their colleagues and friends were paid less than their work is worth.

Many areas analysed by the report by Localis were found to have raised their productivity rates yet had seen relatively weak- and even negative- growth in wages.

For places getting left behind economically in the last five years, the report found pay and worker satisfaction was plummeting and warned that without significant intervention from government, there is the risk that these places could fall lower still.

The UK’s well-known struggle with productivity has dominated the economy for a while, with wage growth and the squeeze on households affecting the average worker’s performance. Now that Brexit talks are underway and the grip on households is loosening, there is a chance for businesses to encourage their workers and incite greater profits.

While there is a multitude of ways to increase productivity, they unmistakenly pull hard on the purse strings. At the Credit Protection Association, our debt recovery services uncover the cash that our members can use to make the daily grind easier on themselves, their customers and employees. From installing a seating area in the break room to introducing management training schemes, you can encourage your employees’ position within the company while ensuring they work their hardest at it.

The UK is never going to recoup the power it lost after the 2016 referendum if it continues to lag behind its European rivals, so contact CPA for any help and advice on how to encourage the productivity in your office.