Employment and wages continue to edge up, but real debate should be about improving productivity through better management

Gerwyn Davies, Labour Market Adviser at the Chartered Institute of Personnel and Development (CIPD) comments as follows on official labour market statistics published earlier today by the Office for National Statistics (ONS):

“Today’s headline employment figures provide a lot of festive sparkle given the improvement in the quality and quantity of jobs that have been created over the past year.  However, while average earnings have moved up a little in the last few months, this will not be sustainable unless we can improve our productivity.

“CIPD research published today shows that the UK management is one area where we are falling behind our international competitors.  It shows that managers are failing to adopt many of the sophisticated management practices associated with hgher levels of productivity. With anywhere between 30 and 45 per cent of employees having some type of managerial responsibility, there are many small but simple improvements each manager that can make a big difference to the growth prospects of UK organisations. If these practices were adopted more widely, the prospect of real wages accelerating sustainably against the backdrop of low inflation would offer a welcome change of fortunes for people in work in 2015.”