Menu
 

The Pandemic Productivity Gap

March 2021

How organisations manage scarce time, talent, and energy of their workforces before COVID-19 has shown to be a key driver in why some have fared better during the pandemic.

There is a considerable difference in how organisations have been buffeted by the coronavirus pandemic, with a recent article published by the Harvard Business Review showing that how an organisation harnessed its resources pre-COVID has major bearing on how it has managed through the crisis – for better and worse.

The Pandemic is Widening a Corporate Productivity Gap by Bain&Co suggests that the pandemic has widened the productivity gap between top performing companies and others stating:

 "Some have remained remarkably productive during the Covid-era, capitalising on the latest technology to collaborate effectively and efficiently. Most, however, are less productive now than they were 12 months ago. The key difference between the best and the rest is how successful they were at managing the scarce time, talent, and energy of their workforces before Covid-19."

Atlassian data scientists also crunched the numbers on the intensity and length of work days of software users during the pandemic.

The results found that workdays were longer with a general inability to separate work and home life, and workers were working longer hours (predominantly because during lockdowns, there is no set start and end of the workday routine).

The length of the day doesn't necessarily mean a more productive one

Interestingly, the average length of a day for Australian workers is shorter than our international peers by up to an hour pre pandemic. Australia's average working day is around 6.8 active hours whereas the US is close to 7.2.

However, working longer does not mean working more productively. Atlassian's research shows that while the length of the working day increased and the intensity of work increased earlier and later in the day, intensity during "normal" hours generally decreased.

So, how do we measure productivity? Bain & Co suggests:

  • The best companies have minimised wasted time and kept employees focused; the rest have not. Those that were able to collaborate effectively with team members and customers pre pandemic fared the best. Poor collaboration and inefficient work practices reduce productivity.
  • The best have capitalised on changing work patterns to access difference-making talent (they acquire, develop, team, and lead scarce, difference-making talent).
  • The best have found ways to engage and inspire their employees. Research shows an engaged employee is 45% more productive than one that is merely a satisfied worker.

The productivity gap was always there. The pandemic merely brought the gap into stark contrast.

Follow Bates Cosgrave on Linkedin, Facebook or Twitter


Disclaimer

This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

Share this


Get Small Business News each month


ChineseLanguage Select

Archive
20212020201920182017 

Sign up to our monthly client bulletin.