Britain’s productivity puzzle may be attributed to poor management, according to Chancellor Philip Hammond. The UK is lagging behind its G7 peers in terms of output per hour worked, with France and Germany outpacing the UK by approximately 30%. Hammond suggests that the issue lies with the ‘long tail’ of British businesses that are poorly managed, as opposed to the top tier of companies that are world-class.
Poor management is often the result of a lack of skills and training, and can lead to low staff morale and engagement, and subsequently, lower productivity. The government is urged to invest in management training and skills development to address the issue.
The Brexit vote is also seen as a factor in the productivity puzzle, with uncertainty leading to reduced investment in machinery and technology. The Brexit process could further exacerbate this issue if it leads to reduced access to skilled workers from abroad.
Addressing productivity is crucial for the UK’s future economic growth and prosperity. If the UK can match the productivity of its G7 peers, it could potentially add £250bn to the economy by 2025.
Hammond’s comments underscore the need for a renewed focus on management skills and training in the UK, as well as a clear Brexit strategy to ensure access to skilled workers and maintain investment levels.
Go to source article: http://www.independent.co.uk/voices/brexit-productivity-puzzle-philip-hammond-britains-bad-managers-to-blame-a7458471.html