Productivity at new lows on stagnant job | Bangkok Business Brief

Productivity levels last year saw a sharp drop following a period of relative stability from 2006-10, suggesting an increase in employee costs, which jumped 16 per cent from 2009 to about US$55,000 (Bt1.7 million) last year, according to PwC.

The Nation

Its ?Key Trends in Human Capital? report, which based on data from over 2,400 organisations in over 50 countries, suggests that this increase in employee costs is largely down to companies cutting back on their recruitment of lower grade employees during the downturn.

This has left companies with a higher proportion of experienced workers who command greater pay, compared to younger, less experienced workers. This comes at a time when companies are seeing little, or no, revenue growth.

Western European companies are getting a much lower return from their investment in their workforce.

?Our analysis reveals that the percentage of employees with less than two years? service has fallen sharply to 22 per cent. Many organisations across Europe have chosen experience over youth to see them through the recession, but cutting the recruitment of younger workers means they are paying out much more for their workforce for less return,? said Richard Phelps, human resource services partner at PwC.

?The difficult job market means many experienced workers are staying longer in jobs, leaving companies struggling with top heavy structures, little staff turnover and rising wage bills.?

PwC suggests that many companies need to go back to basics and improve their performance management processes to ensure that people of all levels are delivering value. For many companies, this will mean implementing more vigorous performance management, which really differentiates between higher and weaker performers and rewards them accordingly. This is where better use and interpretation of people data can?

Full story from?The Nation?at?http://goo.gl/4Ky5D

Source: http://www.bangkokbusinessbrief.com/2012/08/02/productivity-at-new-lows-on-stagnant-job/?utm_source=rss&utm_medium=rss&utm_campaign=productivity-at-new-lows-on-stagnant-job

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