Commenting in response to the latest productivity stats from the ONS, Jon Boys, labour market economist at the CIPD, said:
“Whilst the recent return to real-terms pay rises will be welcomed by employees, this has contributed to a rise in labour costs – already the largest cost facing most businesses in the UK. In the absence of much needed productivity growth, this will likely result in inflation.
“To guarantee sustainable growth for businesses and wage rises for workers, productivity must rise. A growing body of evidence, including from the ONS, underlines the important role that effective people management practices have in boosting workplace productivity.
“The government and employers need to heed this and place more focus on improving people management practices.”
The CIPD is the professional body for HR and people development. The not for profit organisation champions better work and working lives and has been setting the benchmark for excellence in people and organisation development for more than 100 years. It has a community of 150,000 members across the world, provides thought leadership through independent research on the world of work, and offers professional training and accreditation for those working in HR and learning and development. www.cipd.co.uk