Are We Suffering From Low Productivity?
“Are we suffering from low productivity because we have underinvested in human capital? Or are we unable to invest in human capital because structural factors are permanently reducing productivity?” Eric Garton and Michael Mankins, authors of the book “Time, Talent, and Energy”, present evidence and make the case for the former: “we could improve productivity if we stopped systematically underinvesting in human capital.”
Total Factor Productivity Measures the Impact of Technological Innovation
In a recent Harvard Business Review article, Garton points to evidence that “periods of breakout productivity in the United States were not the result of capital deepening (applying more capital to each hour of labor), but of what economists call total factor productivity, a catch-all measure for the impact of technological innovation.
Three Key Investments That Could “Reinvigorate the Productivity Cycle”: Wages, Time, and Energy.
Who has these inspirational ideas and translates them into productivity-driving innovations? People do.” Specifically, Garton and Mankins' research revealed that top-quartile companies "unlocked 40% more productive power in their workforce through better practices in time, talent and energy management", and the article takes a close look at at three key investments that could “reinvigorate the productivity cycle”: wages, time, and energy.