The Bureau of Labor Statistics released the second quarter productivity rates for the non-farm employment showing a decline in productivity of about 0.3 percent. This should be a wake up call for business enterprises worldwide.
Corporations in these difficult economic times, have resorted to trying to save costs by laying off great numbers of employees. They claimed that the result was that they were reporting higher level of productivity in years. This was achieved on the backs of their human capital assets. Heavier workloads. Longer hours. What has happened is that the stress levels have come back to haunt.
It is time for business organizations to realize that they have gutted their human capital assets by drastically cutting their staffs in the name of austerity. When they can then return by reporting high profit levels while gutting innovation and collaboration the only ones they are hurting in the long run is the reputation of the organization.