Australian & NZ Organisations behind the Productivity Curve

Australian and New Zealand Organisations are behind the Productivity Curve

Hay Group releases nine critical drivers to increase productivity in new Focus report

Auckland, November 8, 2011 — Hay Group launched today its annual ‘Focus’ report that discusses the topic of ‘Productivity’ and how productivity as the key driver of performance offers a window of opportunity for companies in Australia and New Zealand to take a dramatic leap forward to catch up to high-performing organisations globally.

In the new Focus report, Hay Group Pacific’s senior executives as well as industry experts and local business leaders provide a clear picture of how business leaders on both sides of the Tasman are trying to tackle the issue of productivity as a key factor to business growth, and attracting foreign and local investment.

Commenting on the new edition of Focus, Henriette Rothschild, General Manager, Hay Group Pacific, said, “To be globally competitive, secure investment and return our economy and organisations to healthy growth, productivity is the next big challenge.”

“Australian and New Zealand businesses are at risk of falling behind the productivity curve compared to the world’s best. Our engagement research shows that many companies in the Pacific lag behind the world’s leading organisations on key areas such as effective leadership, embracing innovation and rewarding great performance,” Rothschild continued.

For many years, companies across every industry have focused on improving employee engagement as a means of increasing productivity. Hay Group research from more than 400 companies globally has highlighted the combination of engagement and employee enablement as the missing link to productivity. On average 15 per cent of employees are engaged but not enabled, which ultimately leads to frustrations.

“Growth in productivity is essential if Australian and New Zealand organisations are to stay competitive now and in the future,” added Rothschild.

The nine drivers of productivity within Hay Group’s Productivity Framework include:

1. Clarity and direction
Organisations that continue to clearly communicate their goals and direction, and are clear about their expectations of employees, are more likely to have strong engagement and better productivity
2. Confidence in leaders
The most significant impact on a team member’s ‘discretionary effort’ and their willingness to go the extra mile for the organisation is their view of their direct line manager. A key starting point for organisations wanting to raise productivity is to strengthen the capability and impact of their leaders on the team they manage.
3. Quality and customer focus
Long-term substantial performance improvements can only come through examining fundamental organisational design change. That means a clear focus on what the customer wants and creating the most sustainable structure to meet customer needs.
4. Reward only the best – respect and recognition
Organisations must learn to reward the best and manage all employees. That doesn’t mean paying everyone more, it means better differentiating and identifying the best performing staff – and retaining them.
5. The ROI on reward – compensation and benefits
Organisations that look at pay as an investment and view rewards as a mechanism, can stimulate employee performance for the longer term, in line with the strategy. Pay is one of a company’s strongest communicators of what is valued
6. Performance management
ANZ business leaders struggle with managing the link between individual and business performance. Performance management is a key lever in productivity and a great opportunity for local business leaders to drive organisational performance.
7. Your workforce is critical – empowerment and authority
Employees want empowerment and authority to act in the best interest of the organisation – having the confidence to let team members lead is a great way to unleash potential and performance.
8. Collaboration
A more diverse workforce, well managed and enabled can unblock performance and strengthen collaboration that helps the organisation achieve innovative breakthroughs in customer focus and process improvements.
9. Structure, work and process
The biggest impediments to business performance are often internal – systems that are too complicated, too technical and lack transparency. A well designed organisation however recognises and often automates the key systems and processes to add value.

According to Hay Group, most companies in Australia and New Zealand are still doing a lot better than their American or European counterparts in the broader economic environment. However, the differences between local organisations and the world’s best are clear and tangible.

“Local organisations need to take advantage of the breathing space created by the current economic condition by acting now. They need to unleash the potential of their employees by enabling them for optimal productivity,” said Henriette Rothschild, General Manager at Hay Group Pacific.

More information is available online at: www.Haygroup.com/au/focus

About Hay Group
Hay Group is a global consulting firm that works with leaders to turn strategies into reality. We develop talent, organise people to be more effective, and motivate them to perform at their best. With 84 offices in 48 countries, we work with over 7,000 clients across the world. Our clients are from the public and private sector, across every major industry, and represent diverse business challenges. Our focus is on making change happen and helping organisations realise their potential.

ENDS

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