Improving worker commitment key to closing Canada’s productivity gap – ICP
Labour productivity in Canada is lagging – we generate less value per hour worked relative to our international peers. [1] Despite the fact that labour effort (work hours per capita) has grown over the past two decades, the economic value per hour worked (GDP per capita) has fallen behind. In short, Canadians are working harder, but not smarter.
Reducing this productivity gap requires either increasing the value of outputs or the efficiency of inputs. Here, complementary compensation and organizational policies can be used in the workplace to enhance labour productivity. While compensation practices have proven useful tools to incentivize workers, they may not provide an enduring competitive advantage.[2] By contrast, organizational policies can provide a cost-effective and distinct means for employers to close the productivity gap.]
