Singapore, South Korea and Malaysia recorded the largest drops in productivity per person with -3.12%, -2.34% and -2.22% respectively.
This is compared to India, which had the highest gain at 2.71%, followed by Indonesia at 0.68%, according to a new report from Workforce Analytics Institute.
Across Asia, most markets have seen a slump in labour productivity, showing steeper decreasing productivity levels between 2008 and 2016, compared to 1999-2007.
The report found that rising wage pressure, lack of skills to leverage technology, ineffective leadership and low engagement levels were making it difficult for firms to deliver productivity gains.
For countries with falling labour productivity, the report suggests using the following strategies to change the trend, based on interviews with over 50 HR professionals in Asia: developing more effective leaders; leveraging technology; and enhancing employee engagement.
“In Asia, where the demand for skilled labour far exceeds supply, companies in the region are encountering substantial difficulties: they are realizing that the link between productivity and business performance is one of an organisation’s key resources and if effectively managed can lead to significant payoffs,” said Siddarth Mehta, Leader, Workforce Planning & Analytics, Mercer.
“Gone are the days when productivity could spike simply with the introduction of technology. Going forward, companies need to be more innovative.”
Report co-author Caitlin Pan, and Senior Researcher, Asia Region of The Conference Board, said organisations need to develop a systematic approach toward tracking and analysing the quality of their productivity interventions.
“Before designing and implementing an intervention, it is imperative to determine the current productivity levels so as to effectively evaluate the changes in productivity,” said Pan.
Source: HRM Asia, Image: Newsdog