Productivity & Workforce Fluctuation

In the third quarter of 2009, The New York Times reported that “worker productivity in the United States was less robust than previously thought in the third quarter as workers earned more money and output rose at a slower pace.”

With reduced resources, companies were sure to feel the squeeze of production pressure – a situation that thousands of managers and teams have dealt with throughout the past year. With Wall Street economists expecting unemployment insurance claims to drop by 20,000, companies are finding new ways to make the most of their resources, encouraging collaboration and maintaining a stream of productivity.

According to the Labor Department, productivity in Q4 of 2009 rose by 6.2 percent (about .2 percent higher than predicted). Innovative technologies and collaborative excercizes are allowing companies to find new and innovative ways to manage the work, be resourceful and work as a team for the sake of production.

As mentioned in The Times, “Productivity often rises at the end of recessions as companies ramp up output before hiring new workers. Rising productivity can raise living standards in the long run. But it can also make it easier for companies to postpone hiring.” Clearly  a balance is required in order to stimulate the economy to full recovery.

Has your organization put a heavier emphasis on productivity lately? The challenge to increase efficiency and performance is one that top companies should strive for, no matter what the economic climate.