Opinion and People

The key to productivity

Alex Kaitsis says motivation is the solution to construction’s productivity problem
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Construction struggles to retain high rates of productivity. The complex nature of the industry leads to difficulties in defining the problem and in providing solutions. Variables include fragmentation, low profit margins, the supply of skilled labour and environmental issues.

Economists argue that a productivity rise could come from better workforce motivation. Here are four areas that could be addressed.

Wages. There is a strong connection between productivity and salary, but it is not enough just to increase salaries as this would have a negative impact in the economy. Sustainable improvement in productivity comes when it generates noninflationary increases in wages, which means that the money added to the economy must be the result of production.

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