Higher Productivity

Higher Productivity

Investments, in education and training, pay-off in terms of higher productivity and noninflationary wage growth. Raising the educational level of employees, by a year, results in 8-13 percent higher employee productivity.

In addition, there is evidence to support the view that employers who invest in computer training, have significantly higher productivity than their competitors.

But investing in human capital is not the only way in which employers can improve productivity. The use of benchmarking and increasing the proportion of employees involved in discussing workplace issues, raise employee productivity. Computer technology is generating many well paid high skilled jobs and has raised the productivity of many businesses.

The challenge remains to ensure that more employees are equipped with the skills that allow them access to these better jobs so that they can enjoy a rising standard of living and firms can achieve higher productivity growth. Therefore, investments in education and training for incumbent employees, especially for dislocated employees, are critical to minimise the costs of this displacement.