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Productivity only a priority for a third of employers as skills shortages persist

February 19, 2019 / Sara Bean

Despite its importance to the economy, productivity is only a priority for 36 percent of employers and only half (50 percent) use the term when discussing organisational performance according to the latest Labour Market Outlook from the CIPD and the Adecco Group. And LMO data suggests that employers are overconfident when it comes to assessing their own productivity, with just 7 percent believing their organisation’s productivity is below average. The report also makes a link between high performance working (HPW) practices and productivity, as organisations that have productivity measures have a larger proportion of staff that received training and a larger proportion of staff that received a formal performance appraisal. Yet skills shortages will continue to put pressure on wages, and starting salaries in particular. Two-thirds (66 percent) of private sector firms have increased starting salaries in response to recruitment challenges, up from 56 percent in the previous qua...