Labor productivity, which is the ratio of output to the input in a production process, is a matter of significant concern to American policymakers. It has reported stagnant progress, averaging at only approximately one percent since 2009, a historical low and points to possible labor economic flares within our system. A productive workforce generates "more output with few hours worked" necessary in bolstering the gross domestic product, and its subsequent boost would go towards strong economic performance (Soergel N.p). Moreover, enhanced labor productivity is crucial towards harmonizing and stabilizing wage disparities favorable to the employee population. As a result, policymakers have for a long time examined the root causes of this declining …show more content…
Despite employees investing more time at work, they are achieving less, i.e. the output rate per input unit as measured by the number of hours worked per worker, the productivity keeps plummeting, reaching the lowest levels in twenty-five years (Seager N.p). The author attributes this dramatic deterioration in productivity to various reasons including the rising wage inequalities which have "barely increased in the past 15 years, " and the country has been subject to the greatest decline in real pay after the recession among all OECD countries (Seager N.p). Further, there is a lack of motivation to keep the employees on the job due to the inadequate wage compensation, short-term contracts, and inadequate employee training for efficient service delivery. She sums up by suggesting that employee motivation (autonomy, fair remuneration, engagement) is crucial to enhancing productivity for corporates in the long …show more content…
These are distinctly enumerated, and the worker is protected from effects of an economic downturn while eliminating the costs associated with attaining new employment opportunities, providing multiple sources of income, enhancing their flexibility in undertaking other duties, and assuring of continuous income. In addition to improved productivity and efficiency in the organization's systems, a flexible work system would allow for quick and accurate adjustments in the business cycle, while hiring relevant talent at only the necessary time in the business process, avoiding unnecessary expenses. Also, this will translate to reduced government social spending on unemployment because opportunities are created across the board, resulting in increased workforce and a vast talent pool that can be tapped it whenever