Lack of Tech Investment Aggravating UK's Productivity Problems
New research from Slack has found that just 21% of UK companies are investing in new technology and 27% in artificial intelligence with a view to enhancing productivity
Poor Productivity
As we highlighted in a recent article, the UK has a long standing problem in terms of poor productivity and skills shortages which goes back many years.
Over the last 2 decades, that problem has been masked by the availability of EU workers under the free movement rules. However, with the ending of free movement under Brexit, the problems arising out of the lack of investment in skills, training and new technology by employers has returned. Indeed, the problem has been aggravated further by the large numbers of over 50’s retiring early during the Covid-19 pandemic, which have added to the labour shortages caused by the ending of free movement.
Moreover, new research conducted by CM.com found that on average, managers in the UK are wasting 7 working days per annum dealing with just general administrative and procedural queries, a problem that could quite easily be rectified with the right training, and through investment in the right technology.
As Kirstie Donnelly, the Chief Executive Officer at City & Guilds Group, points out: “low productivity and growing skills gaps are plaguing businesses and the wider economy. When compared with our G7 counterparts, the UK’s low levels of productivity see us lagging well behind…The government has recently announced far stricter caps on immigration and told employers that the new points-based system will not allow them to fill job roles as free movement has enabled them to in the past. Clearly investing in training is now even more critical and the stakes are higher.“
New Research By Slack
In their new report entitled, 'The State of Work', slack found that:-
- Just 21% of UK companies have invested in new technology and 27% in AI tools with a view to improving productivity
- 30% of UK companies staff waste their time on tasks that are not in accordance with the objectives of the company, but were done for no better reason than that they "appear productive."
- As AI and automation can simplify and rationalize processes that would otherwise be monotonous, repetitive, and time consuming, 90% of those companies that have invested in AI tools and automation stated that they believe that that investment has paid off in terms of improved productivity. Moreover, UK employees from those companies that had invested in AI are 51% more likely to report productivity gains compared to those whose employers had not invested. Furthermore, 77% of UK workers believe that automation enhances productivity, and would save an estimated 3.3 working hours a week
- Employees were of the view that 43% of work meetings could be dispensed with, simply by investing in AI, automation, and new technology. Indeed, Slack highlight the success of Spotify in this regard, as their advertising team implemented automated workflows which optimised collaboration amongst their accounts teams, which in turn delivered a productivity gain of 40% in the process by reducing email traffic and the need for regular meetings.
Reaction
Commenting upon the findings, the SVP at Slack, Christina Janzer, states: "Many companies are stuck in old ways of thinking about productivity...Most of us can think of some repetitive work that we do that isn’t valuable but has to be done in our jobs. That’s where AI and automation become extremely valuable....We’re learning more about the potential benefits of these tools every day. So, companies who may not have jumped on board yet will want to catch up fast to keep up."
Janzer adds: "There’s much more to productivity than inputs alone....It’s key to build a culture that measures performance based on results instead of solely tracking inputs like hours worked or emails sent."
