Corporate Focus on Employee Productivity Growing Rapidly

i4cp study finds that, despite the focus, more than half of companies feel they still aren’t getting enough out of their workforce

SEATTLE, WA (July 2, 2008) – Organizations are hopping on the productivity bandwagon at an increasing rate, according to a recent study by the Institute for Corporate Productivity (i4cp). Fifty-nine percent of organizations taking part in the survey say their emphasis on improving employee productivity and efficiency has increased over the last year, and 49% say they focus on increasing productivity to a high or very high degree.

However, the study suggests there’s work yet to be done. When asked if their organization “gets the most” out of its employees, more than half reported they strongly disagree, disagree or are undecided. And when queried about whether or not their company’s output per hour is higher than that of industry competitors, 58% disagree, strongly disagree or are undecided. Organizational pride, though, lives on. More than half of respondents agree or highly agree that their company delivers “greater value” than their industry competition.

“Belief in the organization and the value it creates for its customers is an important contributor to enhanced performance,” observed i4cp senior research analyst Carol Morrison. “The survey tells us that organizations are looking at their performance, at the results it produces, and they’re proactively working to make improvements. Accurate metrics play a big role in that process.”

To measure productivity, 58% of reporting companies favor tracking output per work group (teams, departments, etc.) to a moderate or very high extent. Output per person was measured to a moderate or high extent by 57% of reporting companies, and revenue per employee was measured by 56% of companies to a moderate or very high extent. The least-measured area reported was ROI on intellectual capital, with 67% reporting it is considered either to a small degree or not at all.

When asked to identify factors that have the potential to boost productivity in their organization, half of respondents tabbed corporate culture as important to a high or very high degree, while 48% reported leadership as a factor to a high or very high degree. Other high-ranking factors include compensation and benefits, training and development, and performance management.

The top tool for tracking productivity is accounting software, with 63% of companies reporting they use it to a moderate or very high degree. Time-tracking applications are favored to a moderate or very high degree by 56% of respondents, followed by use of balance sheets, at 55%.

The Taking the Pulse: Productivity/Efficiency survey was conducted by i4cp, in conjunction with HR.com, in May 2008. The full results of the survey are available exclusively for all i4cp corporate members.

About i4cp, inc.

i4cp is the world’s largest private network of corporations focused on improving workforce productivity. Our vendor-free community facilitates innovation by giving our members – among the largest and most respected organizations in the world – access to:
  1. Peers to spark new ideas and prevent “reinventing the wheel,”
  2. Research to enable members to understand current practices and next practices,
  3. Tools to put ideas and research into action,
  4. Technology to enable members to easily access tailored information and execute workforce strategies.

With more than 40 years of experience and the industry’s largest team of human capital analysts, i4cp is the definitive destination for organizations seeking innovative ways to improve workforce productivity. For more information, visit http://www.i4cp.com/

Greg Pernula
Director of Research Services, i4cp, inc.
Greg.Pernula@i4cp.com
(727) 345-2226

Bill Perry
i4cp, inc.
bill.perry@i4cp.com
(614) 975-7538
Erik Samdahl
Erik is the head of marketing at i4cp, and has nearly 20 years in the market research and human capital research industry.