can good work solve the productivity puzzle? · 2020-01-15 · the roots of this productivity...

Can Good Work Solve the Productivity Puzzle?

Collected essays

Can Good Work Solve the Productivity Puzzle? b

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Edited by Gail Irvine, Carnegie UK Trust

Carnegie UK TrustThe Carnegie UK Trust works to improve the lives of people throughout the UK and Ireland, by changing minds through influencing policy, and by changing lives through innovative practice and partnership work. The Carnegie UK Trust was established by Scots–American philanthropist Andrew Carnegie in 1913.

RSA Future Work CentreThe RSA Future Work Centre aims to prepare today’s workforce for tomorrow’s workplace. The centre explores how radical technologies could alter the world of work – both in terms of availability of jobs and their quantity and quality. Using a combination of scenario planning exercises, hands-on sector labs and research into policy and practice reform, our ambition is to equip policymakers, employers and educators with the insights they need to help workers capitalise on the opportunities of technology while mitigating its risks.

AcknowledgementsThe Carnegie UK Trust would like to express gratitude to all the contributors who have written for this collection. Particular thanks are due to the members of the Expert Group on Quality of Work and Productivity which has worked with Carnegie UK Trust and the RSA over the last eight months of this project providing invaluable insights and support, and to the energy and leadership of the Group’s Chair, Matthew Taylor. Finally, thank you to Andy Haldane for his interest and encouragement of the themes we have explored in this work.

Gail Irvine, Senior Policy and Development Officer at Carnegie UK Trust was the lead editor for the collection, with oversight provided by Douglas White, Head of Advocacy.

DisclaimerThese essays do not represent the collective view of the Carnegie UK Trust or the RSA, but only of the respective authors.

Fulfilling Work

Policy

2020Quality of Work and Productivity

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Can Good Work Solve the Productivity Puzzle? c

ContentsForeword by Andy Haldane, Chief Economist at Bank of England and Chair of the Industrial Strategy Council 1

1. Overview.ByMatthewTaylor,RSA 4

2. Doesgoodworkhaveapositiveeffectonproductivity? Developingtheevidencebase.ByDerekBosworthandChrisWarhurst, WarwickInstituteforEmploymentResearch 10

3. Fromtrade-offstowin-wins:howwecanunlockproductivity andgoodjobs.ByTeraAllasCBE,McKinsey&Co 20

4. Whatdoweknowaboutdigitalisation,productivityandchangingwork? ByMaryO’Mahony,King’sCollegeLondon 28

5. Technology,productivityandgoodwork:viewsfromtheground. ByFabianWallace-StephensandSarahDarrall,RSA 33

6. Cangigworkbegoodwork?ByGillDix,Acas 41

7. Enablingfairwork,productivityandinclusivegrowth: lessonsfromScotland.ByPatriciaFindlay,theFairWork ConventionandtheUniversityofStrathclyde 45

8. Fairwork,lowpayandproductivityinWales. ByAlanFelstead,CardiffUniversity 51

9. Thechallengeisurgentbutnotnew:goodwork,productivity andlessonsfromTavistock.ByZaynMeghji,RSA 56

10. Isittimetoturnthefutureofworkonitshead?ByJoshHardie,CBI 61

11. Productivitythroughpeople–supportingbestpracticeinSMEs. ByTonyDanker,BetheBusiness 67

12. Dead-endrelationship?Exploringthelinkbetweenproductivity andworkers’livingstandards.ByMattWhittaker,ResolutionFoundation 72

13. Canimprovingproductivityhelpourin-workpovertyproblem? ByLouiseWoodruff,JosephRowntreeFoundation 77

14. CanprioritisingworkerhealthhelpclosetheNorth’sproductivitygap? ByAnnaRound,InstituteforPublicPolicyResearchNorth 82

15. Whatweknow–andwhatwedon’t–aboutflexibleworking andproductivity.ByEmmaStewart,Timewise 86

16. Findingouredge:engagingemployersinthemovement tomakeworkbetter.ByPaulDevoy,InvestorsinPeople 91

17. Unlockingpotential:waysoftappingintoemployees’ideasto enhanceproductivity.ByAlanFelstead,CardiffUniversity; DuncanGallie,UniversityofOxford;andFrancisGreenand GoloHenseke,UniversityCollegeLondon 96

18. Howcanweensuremoreworkersdriveandbenefit fromproductivitygains?ByKateBell,TradesUnionCongress 101

19. Afterword.BySarahDavidson,CEO,CarnegieUKTrust 106

AbouttheAuthors 109

Endnotes 120

1Foreword

TheUK’s“productivitycrisis”–theflat-liningofeconomy-wideproductivitysincetheglobalfinancialcrisis–isthesingle most pressing issue facing the UKeconomy.Thecostofthiscrisisarealreadymultiplesofeventheworst-caseBrexitscenario.Understandingtherootsofthisproductivityproblem,and replanting them in more fertile soil, isthesignaturechallengefacingUKeconomicpolicymakerstoday.

Whenitcomestothelinkbetweenproductivityandonekeyaspectofwork–pay–thisrelationshiphasbeenextensivelystudied.Thetwoarestronglypositivelycorrelated.Inpart,thatreflectsacausativechainrunningfromlowproductivitythroughtolowpay:atalevelofacompany,itisproductivitygainsthat,overtime,“pay”forrealpayrises.Itshouldcomeasnosurprise,then,thatthe“lostdecade”forUKproductivityhascoincidedwithalostdecadeforrealpaytoo.

But the link between pay and productivityalsorunsinthereversedirection:ahigherrateofpaycanspurworkersatisfactionandmotivation,thusleadingtohigherlevelsofproductivity.Thisiscalled“efficiencywage”theory.It suggests higher pay can itself hold

thekeytohigherlevelsofproductivity.TherecentexperienceoftheUK,andanumberofothercountrieswhohaveintroduced minimum wage legislation, suggeststhistheoryhassupportinreal-worldexperience.

Far-lessexplored,untilrelativelyrecently, has been the link between productivityandtheother(thanpay)aspects of work, in particular measures ofworkquality.Structuralchangesin the world of work, including the riseofthe“gig”economy,havegivengreaterrecentprominencetothisissue.ThisculminatedinMatthewTaylor’sexcellentreviewofGoodWorkpublishedin2017andearlierfoundationalresearch by the Carnegie Trust and the RSAdevelopingmetricsofworkquality.

Thisvolumebringstogetheracollectionofinsightfulessaysexploring,ingreaterdepththanperhapseverpreviously,therelationshipbetweenproductivityandworkquality.Aswithpay,thisrelationshipisatwo-waystreet.Moreproductive,higher-performingfirmsaremorelikelytoinvestinenhancedworkersecurity, opportunity, training and engagement.Inthatsense,productivity“pays”forrisesinworkquality.

Foreword by Andy Haldane, Chief Economist at Bank of England and Chair of the Industrial Strategy Council

Can Good Work Solve the Productivity Puzzle? 2

But it also seems plausible that causality runsinthereversedirection:higherqualitywork,likehigherpay,canserveasa spur to greater work satisfaction and motivation,thusleadingtohigherlevelsofworkplaceproductivity.Youmightcallthisthe“efficiencywork”hypothesis.The public policy implications of thishypothesisarepotentiallyverysignificant.Forexample,itsuggeststherearenaturallimitstothebenefitsofa“flexible”labourmarketinboostinganeconomy’sefficiency.

Thisvolumeprovidesacomprehensiveassessmentoftheefficiencyworkhypothesis, drawing on a rich and diversearrayofevidenceandexperienceandanimpressivelistofcontributors.Letmedrawoutafewofthekeythemes.Interestingly,thesechime–andhelpmakesense–ofsomelong-standingstructuralfeaturesoftheUKeconomy,includingthe“longtail”oflowproductivitycompaniesandtheirslow rates of technological diffusion and weakmanagementskills.

First, while the correlation between most metricsofjobqualityandproductivityisstrongandpositive,itappearstobestrongest at the lower end of the work qualitydistribution.Inotherwords,thegreatestbenefitstoproductivitymaycome from increasing the quality of workamongthe“longtail”ofcompaniescurrentlywiththepoorestoffering.Indeed,thisevidencesuggestssomeofthelengtheningoftheUK’slongproductivitytailoverthepastdecadecouldbeexplainedbythelengtheningtailoflowqualitywork.Thisisaconcreteexampleofacostofthewrongtypeofjobmarketflexibility.

Second, the key to using and diffusing technology is known not to lie in technology itself, but in the people using it.OneofthereasonstechnologicaladvancesmaynothaveshownupinhigherlevelsofproductivityisbecauseUKworkershavelackedthetrainingand encouragement to make best use ofthistechnology.Thatmightexplainthecausativelinkfromworkqualityto

3

productivity.Anditmightalsoexplainwhy rates of technological diffusion havebeenfallingacrosstheUK.

Third, one of the roles of management istoprovidethesecurity,opportunity,training and engagement to enable workers to progress in pay and productivityterms.Perhapsitshouldcome as no surprise, then, that the UK’slongtailofpoorly-performingcompaniesandpoorly-paidworkershasasitscounterpartalongtailofpoorly-skilledmanagers.Managers’batteries,like those of workers, need to be fully charged if the full fruits of technology forproductivityaretobeharvested.

Theevidencehereisnotthelastwordongoodworkandproductivity.Indeed,Ihopethisvolumecanserveasthespringboard for further research on this importanttopicandforpolicyaction.

Goodworkisalreadyreshapingthecontours of the public policy debate on productivity.Forexample,theIndustrialStrategyCouncil(ISC)isusingmeasuresofworkqualityasoneofits“successmetrics”whenjudgingtheprogressoftheGovernment’seffortstotackletheproductivitycrisis.

Moreneedstobedone.Wordslike“productivitycrisis”and“industrialstrategy”leavemostpeopledazedandconfused.WhenIamaskedwhatthesewordsmeanfortheaveragepersonIsay“goodworkatagoodwage,everywhere”.Thisworksmuchbetterasa description of what is at stake and the prizeonoffer.Astheessaysheremakeonlytooclear,“workingbetter”shouldbe our watchword, for therein lies the keytounderstandingandsolvingtheUK’sproductivitycrisis.

Foreword


1. Overview By Matthew Taylor, RSA

5Overview

Workqualityandproductivityarebothissuesthathavemovedfastuptheagendainrecentyears.Myreviewofmodern employment, commissioned bythethenPrimeMinisterTheresaMayandpublishedin2017,wascalledGood Work1.Sincethentherehasbeen a welcome increase in research, commentary,advocacyandthesharingof good practice around the theme of workquality.ThisincludesanearlierCarnegieUKTrust–RSAcollaboration,which produced the report Measuring Good Work.2Thisexploredgoodwork metrics and sought to enable thegovernmenttodeliveronitsonlypartiallyfulfilledcommitmenttomeasure and be accountable for work qualityacrosstheUKeconomy.

TheMayGovernmentidentifiedbetterjobs as an element of its industrial strategy and, as a member of the IndustrialStrategyCouncil(ISC),Ihavebeenkeentoemphasisethislink.FortheISCtheUK’spronouncedproductivityproblemisclearlyamajorconcern.Ourperformancelagsmostofourcompetitorsandwehaveseenonlyaminimalincreaseinproductivityinthe12yearssincetheglobalfinancialcrisis.Whetherourgoalissimplyahighergrossdomesticproduct(GDP)perheadfor the contribution this can bring to livingstandards,orawiderobjectiveofinclusiveandsustainablegrowth,ourlong-termprospectsrestonincreasingthe underlying growth path of productivity.Therationaleforexploringthe relationship between work quality andproductivityisself-evident.

TheteamattheCarnegieUKTrustareto be commended for drawing together suchanimpressivelistofcontributorswithsomanyinterestingthingstosay.There is no question that this collection canhelpmovethedebateforward.Although I would strongly encourage anyone interested in this topic to read all the essays, in this introduction I will exploresomeofthekeythemes.

Thefirstbigquestionis,ofcourse,aregoodworkandproductivitylinked?Theansweritappearsis‘yes’butwithsomeunknownsandqualifications.The new analysis undertaken by Chris Warhurst and Derek Bosworthrevealsa correlation but one that is not uniform acrossthesevendimensionsofgoodworkidentifiedintheaforementionedCarnegieUKTrust–RSAreport.Theimplicationisthatsomeinterventions,focusing on different dimensions of goodwork,maydelivermoresubstantialproductivitygainsthanothers.Italsoappearsthatthecorrelationisoverallmuch stronger at the bottom end of thelabourmarket(intriguinglyatthehighestendtherelationshipreverses,suggesting that trying to make work ‘perfect’coulddistractfromoverallorganisationalperformance).Thisreinforcesaviewthatthefocusforbothgoodworkandproductivityinitiativesshouldbeonliftingmorepoor-qualityworkcloser,attheveryleast,totheaveragelevel.Thus,theeconomicimperativeofhighproductivityalignspowerfully with the social justice goal of making work better for those who are currentlyleastwellservedbythelabourmarket.


ChrisandDerek’sanalysisisprimarilyquantitative,andsoitisusefultobeable to read their research alongside morequalitativeanalysis.AstheRSA’sFabian Wallace-Stephens and Sarah Darralldiscovered,theintroductionof new technologies in the workplace couldbeconducivebothtogoodworkandproductivity,butwhentechnologymalfunctions, new dependencies and productivitychallengesarecreated.The engagement of employees and line managers as technology is implemented is important to getting job design right andtomaximisingthebenefitsforworkqualityandefficiency.

Inafast-changingworldpeopleoftenfail to learn the lessons of the past and it is intriguing to read Zayn Meghji’s (alsooftheRSA)account describing an earlier debate about good work andproductivity. Thesocio-technicalperspectivethatemergedinthepost-WWIIdecadesfromtheTavistockInstitutewasinnovative,radicalandinmanywaysworldleading.Yetforanumberofreasons–includingtheconflictinginterestsofmanagersandworkerrepresentatives–itfailedtodeliveronitsearlypromise.Therearelessons here for all of us trying to link betterworktoorganisationalsuccess.

Iftheexistingcaseforseeinggoodworkasapathtoproductivityisstrong,variousfactorsmaycometomakeitstrongerstill.ApplyingtheextensiveresearchinsightsofMcKinsey,Tera Allas shows that without a commitment tobetterworkmanyoftoday’slabourmarket inequalities are likely to be

exacerbatedbytheunfolding fourth industrialrevolution.Mary O’Mahony fromKing’sCollegeLondonmakesasimilarpointaboutthemulti-faceted impacts of digitalisation in theworkplace.Inasimilarvein,theConfederationofBritishIndustry’s(CBI)Josh Hardie argues there is no question that the way technology might change people’sjobsneedstobeconsideredand planned for, but worrying about robots threatening the future of good work risks looking through the telescope fromthewrongend.Josharguesthatadoptingproductivity-enhancingtechnology is dependentonhavinggoodworkconditionsinplace.Ifbusinesses do not engage their people properly, technology often fails to be usedtoitsfullpotential.Joshexploressome of the ways in which employers sometimes fail to grasp the nettle in goodwork,technologyandproductivity,and highlights steps to make more of thisvirtuouslink.

Whatcomesclearlythroughtheessaysis that pressures in different sectors and thoserelatedtobusinesssizeneedtobeaddressed if we are to support business practices that prioritise good work and productivity.Providedthesedifferentpressures are understood and engaged with,thisisnotabarriertoprogress:businessesdonotneedtohaveleading-edgepracticetodesignjobsthatdelivergoodworkandreapproductivitygains. Tony Danker’s contribution showcases how Be the Business supports practical interventionsinsmallandmedium-sizedenterprises(SMEs)toimprovetheirproductivitythroughmakingthemost

7Overview

oftheirpeople,andheprovidesconcreteexamplesofthosewhohaverisentothechallenge.InvestorsinPeopleisalongerestablishedinitiativefocusingon employee engagement and its links toorganisationalperformance.TheInvestorsinPeopleprocesshashadasignificantandbenignimpactinmanyorganisationsbut,asitsCEOPaul Devoy argues in his essay, if we want to get the message through more widely, we would do well to learn from the publichealthmovementindevelopingstrong,simplemessages.

The research of Alan Felstead and colleagues working on the Employment and Skills Survey providesstrongevidenceforthelinksbetween employee engagement and innovationatwork.Thisgoodnewsistemperedbyfindingsthatsuggestlevelsof engagement which could encourage employeevoiceandinnovationhavefalleninrecentyears.Itistobehopedthattheverysubstantialloweringofthethresholdforworkerstohaverightsto representation, information and consultation–beingintroducedinApril2020asoneoftherecommendationsofmy2017review–willreversethatfall.

Workisalreadychanginginmanywaysand it is important for research and practicetokeepup.Gigworktendstobeviewednegativelyinthepublicandpolicydebate(althoughsomeresearchsuggestsgigworkershavehigherthanaveragejobsatisfaction).Takingupone of the strongest themes in this collection, Gill DixfromAcas(Advisory,ConciliationandArbitrationService)

argues that strengthening worker voiceandcollectiveactionisvitalifgigworkistobegoodwork.Technologyisfacilitatingmoreflexibleformsofworkanditisimportantthatthisflexibilityis‘two-way’:offeringbenefitstoworkersaswellasemployers.AsEmma Stewart fromTimewisepointsout,oncewehavemoremodelsofflexibleworkinginplace,across a wider range of different sectors and role types, we will be in a far better position to understand the link between flexibleworkingandproductivity.

It is encouraging to see much common groundbetweenthoseadvisingemployersandthoseadvocatingforworkers.Kate Bell from the Trades UnionCongress(TUC)arguesthattheimplementationofthecomingwaveoftechnological change should remedy thefailureofprevioustechnologicalshiftstoputworkersfirst.Theinequality,socialdiscontentandpoliticalupheavalthat many western countries now face atleastinpartreflectsthefailuretomanagepastindustrialtransitions.Louise WoodrufffromtheJosephRowntreeFoundation(JRF)arguesthat designing business practice and policy solutions to addressing good workandproductivitymustconnectwiththeeverydaylivesandconcernsofpeople working on low or unpredictable incomes.

Inequality is clearly an important aspect of the good work picture but it isworthnotingtheevidencepresentedby Matthew Whittaker from the ResolutionFoundation.First,thelabourshareofGDPhasfallenmuchlessin


theUKthaninmanyotherdevelopedeconomies while, second, recent rises in thevalueofminimumwagehavemeantthat those at the bottom of the wage distributionhaveactuallydonerelativelybetter in wage growth than the group immediatelyabovethem.Ultimately,he cogently argues, it is only by raising productivitythatwecanimprovepay(animportantaspectofgoodwork),and this requires us, amongst other issues,tounderstandwhypeoplehavebecomemoreresistanttomovingto organisations or places offering betterjobs.Thisanalysisalsoprovidesa window into some of the wider complexitiesofthegoodworkdebate,inthatinterventionsthatsupportimprovementsinoneaspectofgoodwork, such as pay, may not necessarily lead to, and in some cases may present challenges to, other aspects, such as progression.

ThiscollectionisintendedtoinfluencepolicyandpracticeacrosstheUKanditishearteningtoreadthepositivepreface to this collection by Andy Haldane, chief economist at the Bank ofEnglandandchairoftheISC.ThoseofusfocusedonWestminsterandWhitehallcanalsolearnfromandbeinspired by the commitment of the devolvedadministrationofScotlandandWales.Patricia Findlay of the Scottish FairWorkConventionandtheUniversityof Strathclyde writes eloquently of theroletheconventionhasplayedinbringing together a broad coalition of stakeholderscommittedtogoodwork.Alan Felstead fromCardiffUniversitydescribeshowtheFairWorkCommission

setupbytheWelshFirstMinisterisaconcerted response to the combined problemsofpoorproductivity,lowskillsandpoorpayintheWelsheconomy.

A number of local authorities, particularly in our major cities and city regions,havealsotakenupthemantleof work quality by creating their own coalitions and charters to encourage goodpractice.AsAnna Round from theInstituteforPublicPolicyResearch(IPPR)Northargues,thiscanenableageneral commitment to good work to be enhanced by a focus on key local priorities,forexampleintheNorthEaston tackling poor workplace health as a meansofimprovingindividualwellbeingandproductivity.

Overall,IbelievethiscollectionofessaysconfirmstheCarnegieUKTrust–RSAhypothesis that putting the concepts ofgoodworkandproductivitytogethercouldbefruitful.Thejuxtapositionhasbeenausefulprovocationforseveralofourauthors,butbeyondthisIsenseabroadercomplementarity.OntheISCwehaveoftenreflectedonthe limited traction of the concept of ‘productivity’.Amongstthepublicitisnotwellunderstoodandevenamongstthose who do recognise the idea there is a tendency to see it as one used by managers to justify intensifying work orcuttingjobs.Yet,withoutraisingproductivityandinvestinginthemeans to do so, our national economic prospectslookbleak.Historically,raisingproductivityhasbeenkeytoimprovingwagesandlivingstandards.Incontrast,theconceptof‘goodwork’isonethatis

9Overview

moreintuitivelyunderstoodandstronglysupportedacrosssociety.Itsweaknessmay be a sense that it is an aspirational goalratherthananachievablerealityforeveryone,especiallyforthoseatthe bottom end of the labour market, and there remains much to do if the full rangeofleversthathelptodelivergoodworkaretobeeffectivelydeployed.

By putting these ideas together, wecanrenderproductivityamoreunderstandable concept, one that can support our aspirations for good work and a good society, while linking,

throughpracticeandevidence,goodwork to the urgent and practical task ofmovingoureconomyontohighertrajectory.Perhapsthemostimportantcontribution of this collection is to start to build a strong bridge between the two concepts.Itisimportantnowthatwecontinue to strengthen that bridge so that the story of economic dynamism cangohand-in-handwithouraspirationfor an economy in which, to borrow thewordsIusedinmy2017reporttogovernment,‘allworkisfairanddecent,withrealisticscopefordevelopmentandfulfilment.’


2. Does good work have a positive effect on productivity? Developing the evidence baseBy Derek Bosworth and Chris Warhurst, Warwick Institute for Employment Research

112.Doesgoodworkhaveapositiveeffectonproductivity?Developingtheevidencebase.

Examiningtherelationshipbetweengoodworkandproductivityisnoteasy,andfortworeasons.First,thereisnoready-madedatasetthatcanbeusedfortheUKtoanalysethetwosetsofvariablestogether.Second,consistencywithin analyses is hampered by the inconsistenciesindefiningjobqualityandthewidevarietyofmeasuresforproductivity.

Thegoodnewsisthatthefindingsfromourinvestigationintothelinkbetweengoodworkandproductivityaregenerallypositive.Wefirstundertookaliteraturereviewofthegreyandacademicliteratureexaminingsevendimensionsof‘goodwork’andproductivitymeasures.Second,weundertook new statistical sectoral analysis to identify how aspects of good workwereaffectingtheproductivityofworkers.Ourevidencebase,summarisedbelow, can contribute to helping the UKGovernmentadvancethecasesetout in its Industrial Strategy linking the pursuitofgoodworktothedeliveryofproductivitygains.

Introduction

The Taylor Review of Modern Working Practices1in2017arguedthatgoodworkforallshouldbeanationalpriority.Thereviewalsooutlinedthatmostbusinessesunderstandthatproviding‘goodwork’isnotonlyagoodthingtodo in and of itself but that good work canalsodeliverbusinessbenefits.Forexample,thatgoodworkmighthelpdeliverproductivitygains.AnalysisbyFrankSiebern-ThomasusingEuropeandatafrom1995–2000suggeststhatcountrieswithhigherjobqualityhavehigherlevelsoflabourproductivityandviceversa2.GiventhattheUKhaswhatBank of England Chief Economist Andy Haldanecallsa‘productivityproblem’–withthelevelofproductivityflat-liningsincetheglobalfinancialcrisiswhile,post-recovery,keycompetitorcountrieshavesurgedahead–goodwork might offer a new solution to this problem.Recognisingthispossibility,theUKGovernment’sIndustrialStrategyincludes good jobs as one of the foundationsofboostingproductivity.

Understandingifgoodworkcandeliveronthispromiseisimportant.Althoughmanybusinessesmayseeavalueinprovidinggoodwork–bothaspartoftheirresponsibilities as an employer and as a meansofmotivatingbetterperformancefromstaff–othersmaynot.Gatheringand engaging the policy and business communityintheevidencebaseontheproductivityimpactsofgoodworkisafirststep.Thisessayreportstheoutcomesofourliteraturereviewandsectoralanalysisthat undertake this task3.


Key findings

Goodworkandproductivityseem,onthewhole,tobepositivelycorrelated.Apositivecorrelationwasfoundinfourofthefivedimensionsofgoodworkforwhichevidenceexistsinexistingliterature.Evidenceforafifthismixed;someresearchfoundpositivecorrelations,othersnot.Fortheremainingtwodimensionsthereissimplyalackofevidenceeitherway.Inoursectoralanalysis,withwhichwewereabletoexamineallsevendimensions,therewerepositiveresultsforfiveofthesevendimensions.

Withthissectoralanalysisofthe17sub-indictorsacrossthesevendimensions,sevenshowedhigherproductivitywiththebetterthequalityofwork.Onlyonesub-indicatorshowedlowerproductivityandeightshowedaninverse-Ushape(i.e.productivityislowestforthetwoextremeendsofworkquality–verygoodandverybad).

Thecorrelationisstrongerforbadworkandpoorproductivity.Thisshouldbeamajorconcernandpotentialpointforintervention.

Thepatternofcorrelationisnotuniform:thestrengthsofthecorrelationsvaryamongstthesevendimensions.Thissuggestsinterventionsthatfocusondifferentdimensionsofgoodworkmaydelivermoresubstantialproductivitygainsthanothers.

Insomecasestheexistenceof‘decentwork’ratherthan‘excellentwork’seemstotheoptimalpointforgeneratingproductivitygains.

Belowweexplainourprocessandfindingsinmoredetail.Weconcludeby setting out the implications for the policyandbusinesscommunities.

Measuring good work

As mentioned, part of the challenge of measuring the impacts of good work on productivityisthattherearedifferingdefinitionsandmetricsusedforjobquality.FollowingtheUKGovernment’sacceptance of the Taylor Review’s recommendationthattheUKneeded

a standard measure of job quality, the MeasuringJobQualityWorkingGroup(2018)wasconstitutedandtaskedwithdevelopinganagreedsetofjobquality measures4.DrawingontheworkoftheCharteredInstituteofPersonnelandDevelopment(CIPD)withitsnewUK Working Lives Survey,theWorkingGrouprecommendssevenbroaddimensions by which to measure good work.Thesevendimensionsaretermsofemployment;payandbenefits;jobdesignandthenatureofwork;socialsupportandcohesion;health,safetyandpsychosocialwellbeing;work-life

13

Table 1: Prevalence of evidence for different aspects of job quality in relation to productivity in existing research.

Pay and benefits Strong

Health, safety and psychosocial wellbeing Moderate

Job design and nature of work Moderate

Voice and representation Moderate

Work-life balance Weak

Terms of employment Missing

Social support and cohesion Missing

balance;andvoiceandrepresentation.Eachdimensionhassub-indicators.

Measuring productivity

Productivityisaneconomicmeasureoftheefficiencywithwhichinputsintoproductionareconvertedintooutputsofgoodsandservices.Althoughresearchersuseavarietyofmeasuresandindicatorsforproductivity,thereisatleastanofficialmeasure.TheUKGovernment’sOfficeforNationalStatistics(ONS)generallyuseslabourproductivityasitsstandardmeasureofproductivity–thelevelofGDPperpersonorperpersonhouroflabourinput.However,productivitycanbehardtocaptureinsomesectors.Themostobviousarehealthcareandthepublicsector generally, where quantifying output canbedifficult.

Literature review findings

Usingthekeytermswithinthegoodworkdimensionsandtheofficialandothermeasuresofproductivity,thefirsttaskofourinvestigationwasaliteraturereview(seeTable1)5.Around

450UKandinternationalarticlesandpaperswereidentified,ofwhicharound40werethenselectedasindicativeforfullreview.Wefoundthatsomedimensionsofgoodworkhavebeenmoreoftenexaminedthanothers.Whereevidencehasbeenfound,therelationship between good work and productivitytendstobeexaminedthrough indicators within a dimension, rather than demonstrating a link between the dimension as a whole andproductivity(limitingourabilitytosaywithconfidence,forexample,thatvoiceandrepresentationmechanismsimproveproductivity).

Examiningthefiveareasthatareresearchedintheextantliterature,therearegroundsforoptimism.Forthefourofthefivedimensionsofgoodworkforwhichevidenceexists–payandbenefits;health,safetyandpsychosocialwellbeing;jobdesignandthenatureofwork;andwork-lifebalance–apositiveimpactonproductivityisfound.Forthefifthdimension,dependingonthemechanismofvoiceandrepresentationwithinbusinesses,theexistingevidenceappearsmixedbutnotdiscouraging.



Can we examine job quality and productivity ‘in the round’?

Asmallnumberofstudieshaveusedmultidimensionalindexesofjobqualitytoexamineitsrelationshipwithproductivityandanycausality.Theseanalysesfindthatproductivityappearstopositivelyimpactjobquality,although the impact of job quality on productivityismixedandisdependentonthetypeofsector.Itneedstobesaid,however,thatfewstudieshavetriedtoestablish a causal link, despite emerging opinionthattheremightbeavirtuouscircle,withamutuallybeneficial,evenreinforcing, relationship between good workandproductivity.Noanalysestodatethatwehaveidentifiedcoverallsevendimensionsofgoodwork.

New sectoral analysis of the relationship between good work and productivity

Followingourliteraturereview,weundertook a sectoral analysis to produce new insights into job quality and productivity.ThedatasetwegeneratedtoexploretherelationshipbetweengoodworkandproductivityperformancemergessectoralproductivitydatawiththegoodworkdatafromtheUK-basedSkillsandEmploymentSurvey6.Itenablesthefirstexaminationoftherelationshipbetweengoodworkandproductivityusingallsevendimensions.Itisbasedoneveryworkerwithinagivensectorhavingthesamelevelofproductivitybutretainingtheirindividualgoodwork responses7.Inthiswaylabour

productivity(outputperpersonhour)isthevariabletobeexplained;sectoremploymentandcapital(e.g.machineryandequipment)arethecontrols8;andtheindividualresponsestothegoodworkvariablesareabletoinfluencethesectoroutcomeforworkersinthatsector.

TheUK’sgeneralpoorproductivityperformanceisconfirmedbythedataset,although there are considerable differences acrosssectors.Intermsoftherelationshipbetweenproductivityandgoodwork,thedescriptivestatisticscalculateoutputperpersonhourforsub-indictorsacrossthesevendimensions.Thesub-indicatorsanddimensionsaresetoutinTable2.

Table 2 summarises the nature of the relationshipbetweenlabourproductivityandeachofthesub-dimensionsofgoodworkcross-sector.Ofthe17sub-indicators,sevenshowedhigherproductivitythebettertheworkquality(seetheexampleinFigure1a).Onlyonesub-indicatorshowedlowerproductivityandeightshowedaninverse-Ushape(seetheexampleinFigure1b).Thepoorestgoodworkcategoryhadthelowestproductivityin11ofthe17sub-indicators.Thehighestqualityworkhadthelowestproductivityoutcomeinfivecases.However,inthe14caseswhereitwaspossibletomovefromthepoorestquality work up to the second poorest, 13 were associated with an increase in productivity.Thecombinationofapositiverelationship between good work and productivityand,moreparticularly,theinverse-Ushaperelationship,impliesthatthere is good reason for future policy and practice to focus on the poorest quality workendofthespectrum.

15

Tabl

e 2

Patt

erns

in t

he g

ood

wor

k su

b-in

dica

tors

Prod

uct

ivit

y

wit

h re

spec

t

to g

ood

wor

k

Low

est

pro

duct

ivit

y ou

tcom

e

Sub

-in

dica

tor

Dim

ensi

on

Increasing

Falling

Inverse U

Other

Poorest good work

Highest good work

Isyou

rjob

perman

ent?

Term

s of

em

plo

ymen

tCha

nceoflosing

jobinnext1

2mon

ths

Satisfie

dwithpa

yaspe

ctofy

ourjob

Pay

an

d

ben

efits

AfterIleavemyworkIkee

pworryingab

outjob

problem

sH

ealt

h, s

afet

y an

d ps

ycho

-so

cial

wel

lbei

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(1a) In my current job I have enough opportunity to use my knowledge and skills

(1b) My job requires that I help my colleagues to learn new things

Figure 1: Common relationships between productivity and good work. (Note: number of responses shown in the columns.)

Figure1showstwoexamplesfromthe17sub-indicatorsofgoodworkexploredintheanalysis.Theseexamplesshowthe two most important patterns in thedata(seeTable2).Overall,therelationshipisgenerallyeitherpositive(goodworkisassociatedwithhigherproductivity,Figure1a)orinverse-Ushaped(productivityislowerforthetwoextremeendsofgoodwork,Figure1b).

Usingthenewdatabase,wealsosoughttoexplainproductivityusingthetwocontrolvariables–employmentandcapitalstock–andthesevendimensionsofgoodwork(aggregatedfromthe17sub-indicators).Onlytheeffectsofthegoodworkvariablesareshown(seeTable3).

Fiveofthesevendimensionshaveapositiverelationshipwithproductivity.Work-lifebalanceispositivebutnotstatisticallysignificant.However,twoofthedimensionsarenegative(we

returntothisfindinglater).Thevalueassociatedwitheachgoodworkvariablein Table 3 represents the difference inproductivitybetweenthepoorestandthebestworkcategories(e.g.verysatisfiedandverydissatisfied).

Theresultssuggestthatthereis8%higherproductivityinthoseworkersmostsatisfiedwithpayvis-à-visthoseleastsatisfied(therearenosub-dimensionsofpay).Thesameoutcomesarefoundforjob design and social support, and there is 14%higherproductivityforthebestvoiceandrepresentationthaninthepoorest.Ofthesub-indicators,wehighlightjustafewexamples.Theopportunitytouseknowledge(partofjobdesignandnatureofwork)andteamwork(partofsocialsupportandcohesion)arebothstronglypositivelyrelatedtoproductivity.Inaddition,bothvoiceandrepresentationareseparatelypositivelyrelatedtoproductivity.

Strongly agree

Agree Disagree Strongly disagree

Strongly agree

Agree Disagree Strongly disagree

2000

1500

1000

500

0

2000

1500

1000

500

0

2,421 2,581 510 150 1,935 2,570 803 204

Outpu

tperpersonho

ur

Outpu

tperpersonho

ur

17

Thenegativevaluefortermsofemployment is caused by the considerably greaterproductivityperformanceamongst those who think they might losetheirjobinthenext12monthscompared with those who do not think so.Thisfindingisinterestingandneedstobeexploredfurtherbecauseitisalsothecase that job insecurity is considered to be detrimentalforwellbeing.Althoughtheshort-runeffectofjobinsecuritymightbeto produce higher work effort and thereby, higherproductivity,thelong-termeffectsmaybenegative.

In the case of health, safety and psychosocialwellbeing,itsthreesub-indicators(outlinedinTable2)areallnegativelyrelatedtoproductivity,althoughinclusionofmoresub-indicatorsforthisdimensionwillbeexploredinfuture analysis9.However,oneofthesub-dimensionsfurtherillustratestheneed to be careful in the interpretation ofthefinding,astheresponseof“never”tothestatement“AfterIleaveworkIkeepworryingaboutjobproblems”

issignificantlynegativelyrelatedtoproductivity,whiletheresponseof“occasionally”,whichseemsanacceptablejob characteristic, is associated with thehighestproductivityoutcomeandsignificantlyhigherthanthe“never”outcome.

Table 3: Individual level regression with good work indices.

Variables Change in productivity (%)

Terms of employment –7

Payandbenefits 8

Health, safety and psychosocial wellbeing –9

Jobdesignandnatureofwork 8

Social support and cohesion 8

Voice and representation 14

Work-lifebalance 2


Wealsodisaggregatedtheanalysisbyninebroadsectors(seeTable4).TheanalysisisthesameasinTable3,withtheexceptionoftheadditionofvariablesthatattempttoidentifywithin-sectoreffectsonproductivityoverandabovetheall-sectoreffectsshowninthefinalrowofTable4.Asthewithin-sectoreffectsofgoodworkaccountforsomeoftheexplanationofproductivity,itproducesadifferenceintheall-sectorresultsbetweenTables3and4.

The results suggest that there are some important differences between sectors in theeffectsofgoodworkonproductivity.Theoverallresults(finalcolumn),whenthe sector effects are included are almost the same as those reported in Table 3, although one or two percentage effects


Tabl

e 4:

Ind

ivid

ual l

evel

reg

ress

ion

wit

h go

od w

ork

indi

ces

for

nine

bro

ad s

ecto

rs (c

hang

e in

pro

duct

ivit

y, %

).10

Va

ria

bles

Primary

Construction

Low-tech manufacturing

High-tech manufacturing

Less knowledge-intensive Private Businesses

Knowledge-intensive private Businesses

Public administration

Education

Health

Overall

Term

s of

em

plo

ymen

t–33

+–

––7

––

+7

–7

Pay

an

d b

enefi

ts–

+–

–+

23+

++

8

Hea

lth

, sa

fety

an

d p

sych

oso

cia

l wel

lbei

ng

–+

+–

––11

++

–8

Job

des

ign

an

d n

atu

re o

f w

ork

–+

––

1314

+–4

210

Soci

al s

up

por

t a

nd

coh

esio

n+

+–15

+–

22+

14+

Voi

ce a

nd

rep

rese

nta

tion

60+

–13

+–

17+

+–

14

Wor

k-lif

e b

ala

nce

55–

313

–10

++

30+

Note:onlystatisticallysignifican

tcoe

fficien

tsaresho

wn.W

herevalue

sareinsign

ificant,onlythepo

ssibledirectionofth

eim

pactonprod

uctivity

issho

wn.

19

aremarginallysmaller.Evenbearingin mind the earlier discussion that the estimatesreflectthedifferencebetweenthe poorest quality work and the best (e.g.verydissatisfiedandverysatisfied),some of the sector estimates seem large.Theprimarysectorandthehealthsector stand out in this regard, although wehavealreadynotedtheproblemofdefiningproductivityinthepublicsector.Ontheotherhand,theknowledge-intensivesectorsuggestsconsiderablesupport for the link between good work andproductivity,withtheexceptionof health, safety and psychosocial wellbeing.

Implications for research and policy

Theseinitialfindingsarepositiveandencouraging.Theysuggestthatgoodwork can be encouraged as a route to improvedproductivity.Poorerqualitywork strongly correlates with poor productivity.Therefore,iftheUK’slongtailofpoorproductivitybusinessesisto be addressed, one point of focus forgovernmentpolicyshouldbethosesectorswithhighincidencesofpoor-quality work or work that is poor quality byseveralmeasures.Moreover,ourfindingssuggestthatbusinessesdonotalwaysneedtohavebestorleading-edge practice when it comes to good workinordertoreapproductivitygains.Actionfromgovernmenttoencouragebusinesses to introduce changes across someofthesevendimensionsthatmoststronglycorrelatetoproductivitycouldbevaluable.

Wehavesaidthattherearegapsintheevidencebaseongoodworkandproductivity.Intheliteraturereviewwecouldnotfindevidenceforallthedimensions.Wewouldliketoseenewresearchontwoinparticular:termsofemployment and social support and cohesion.Wealsoidentifiedlimitationsinthesurveysavailablefortheanalysis.WerecommendthatUKGovernmentandothersurveyfundersshouldexplorethepotentialsupportthatmightbegiventoinvestigatinggoodworkandproductivitythroughexistinghigh-qualitysurveys,suchastheSkillsandEmploymentSurveyandtheCIPD’sUKWorkingLivesSurvey.Weunderstandthattheexistenceofevidencewill not necessarily lead, in all cases, directlytochangesinpractice.Activitiestosupportthesefindingstobetranslatedinto workplace practice will be important iftheUKistoaddressitsproductivityperformance.However,wewouldstillencourage further research be undertaken tofillsomeoftheevidencegaps.

Thereviewofextantliteratureconfirmedthat there are inconsistencies in how both jobqualityandproductivityaremeasured,andsomemeasuresaresimplyproxies.Standardapproachesareneededforboth.WewouldsuggestthattheONS’smeasureoflabourproductivitybeencouragedforuseinresearch–notleastforresearchthatisdirectlygovernmentfunded.Second,that the good work measures of job qualitybeadoptedbytheUKGovernmentandsimilarlyencouraged.WesuspectthattheUKGovernmentadoptingthesevendimensionswilldriveitsuseamongstresearchers and help businesses identify whereimprovementsinjobqualityneedtobemadetohelpimproveproductivity.


3. From trade-offs to win-wins: how we can unlock productivity and good jobsBy Tera Allas CBE, McKinsey & Co

213.Fromtrade-offstowin-wins:howwecanunlockproductivityandgoodjobs.

Introduction

TheUK’sIndustrialStrategy,Building a Britain fit for the future, is clear on itsobjectives:toincreaseproductivityand ensure good work for all1.Theseareeminentlysensibleaims.Althoughemployment has been trending towards recordhighs,workers’productivityhasbeenflat-liningforthelastdecade,ashaverealwages.ThelasttimetheUK’sproductivitygrowthwasthisslowwasinthe1880s(Figure2).

Yet,theonethingthatcouldprovidearapidproductivityboost–widespreadadoptionoftechnology–isaweaknessinUKorganisations2.Moreover,thoseworkersthatalreadyhavelowerwagesandlowerlevelsofeducation,skillsandemployment opportunities are likely to facethemostpressurefromautomation.

So what are the prospects for enhancing bothproductivityandgoodwork?Wherearethetrade-offsandthewin-wins?Howcanweadvanceboth?

The last time the UK’s productivity growth was this low was in the 1880s.

Figure 2: UK labour productivity growth by decade, 1860–2018.

UK labour productivity growth by decade, 1860-2018 Average annual growth rate, %

Source:BankofEngland;ONS;McKinseyanalysis

1860

–186

9

1870

–187

9

1880

–188

9

1890

–189

9

1900

–190

9

1910

–1919

1920

–192

9

1930

–193

9

1940

–194

9

1950

–195

9

1960

–196

9

1970

–197

9

1980

–198

9

1990

–199

9

2000

–200

9

2010

–2018

1.9%

1.7%

0.6%

1.4%

0.8%

1.4%

2.6%

0.8%

1.9%

3.2%

2.8%

2.4% 2.4%2.2%

1.0%

0.6%


Lots of good work, but with serious caveats

TheflipsideoftheUK’s‘productivitypuzzle’hasbeenan‘employmentmiracle’.Employmentrates,thetotalnumber of people in employment and the total number of hours worked are atanall-timehigh3.Thisistrueforboth women and men, all regions of theUKandnearlyallsectorsandagegroups4.Thisreallymatters:notbeingunemployed is a critical factor for individuals’healthandhappiness5.

Butdothesejobsrepresentgoodwork?Thebroadpictureissurprisinglypositive:

people’saveragelifesatisfactionisona slight upward trend6, job satisfaction hasremainedstableovertheyears7 andstatisticsonhealthandsafetyhaveimproved8.(Notethatalthoughoverallwork-relatedill-healthandinjurieshavebeenonadecliningtrajectory,self-reportedwork-relatedstress,anxietyand depression has shown signs of increasing in recent years9.)

Intermsofinequality,theUK’swagedistribution has become slightly less polarised10.Thebiggestincreaseinnetnewjobssince2001hasbeeninthemedium–lowbandof£10–15perhour(Figure3)and,despitestatements

The largest growth in employment in the UK has come from occupations paying £10-15 per hour

Figure 3: Share of UK employment in different wage bands, 2001 and 2008.

*2018prices;distributionbasedon4-digitSOCoccupations;mediangrosshourlypayforallpersonsemployed(includingpart-timeandself-employed).

Source:ONS;McKinseyanalysis

£5-10 £10-15 £15-20 £20-25 £25+

2001

2018

33 31 17 15 5

26 39 15 14 7

23

to the contrary, the labour share of income stopped shrinking in the late 1980s11.(Notethattherearealotofmisconceptions about the labour and capitalsharesofincome.Althoughthereare genuine measurement issues, much of the confusion has arisen because a large proportion of the initial academic literature and commentary emanates fromtheUS,wherethecapitalshare,aswellasincomeinequality,haveindeedrisensharply.)

Eventhelackofrealwagegrowthshouldnot necessarily lead us to conclude that the quality of jobs has deteriorated overall.Asignificantbodyofliteraturesuggests that incomes are only one

and,atleastintheUK,typicallynotthemostimportant,componentinpeople’swellbeing12.Peopleinmanyoccupations,letaloneindividualteams,exhibitsignificantlyhigher(andlower)levelsoflifesatisfactionthancanbeexplainedbytheirwages(Figure4).

The single most important reason for unhappinessatwork?People’srelationshipwith their boss13.Hencetheimportanceofleadershipandmanagement(seebelow).The‘bossfactor’alsohelpsexplainwhytheUK’sgrowinglevelsofself-employmentareprimarilyapositivetrend:morethan80%oftheself-employedsaythattheyhavehigherjobsatisfactionthanwhen employed14.

Figure 4: Life satisfaction by occupation 2012–2015.



Butletmebeclear:despiteallthepositives,thereisstillmuchunnecessarysuffering.Therearetoomanyissues–fromjobinsecuritytolongcommutestodiscriminationtotoxicworkplacecultures–tocoverinthisshortessay.They may only impact some, sometimes small, segments of the population, but remember:theIndustrialStrategy’sstated goal is ‘good jobs and greater earning power for all’.

The promise and perils of technology adoption

Thatgoalcontainsacontradiction:greater earning power requires higher productivity,buthigherproductivitycouldresultinareductioningoodjobs.Although the aggregate economic effectsofindustrialrevolutionsinthepasthavebeenpositive,theimpactonindividualpeople,firms,townsandsectorshasoftenbeennegative15.

McKinsey’smodellingofthefutureofworkintheUKsuggeststhattheimpact of automation on aggregate employment is likely to be modestly positive,addinganother1–2millionnetnewjobsby2030.However,around7millionjobs(23%of2017employment)might be displaced, requiring workers to movetonewoccupations16.

The people that are likely to be most affected are those that are already disadvantaged.Employmentinoccupationswiththelowestqualificationsislikelytogrow10percentagepointslessto2030thanthosewiththehighest.Demandforoccupationswiththeyoungest(aged16–24)andoldest(aged55+)workersislikelytogrow30%slowerthanforotheragegroups.Occupationswith currently high unemployment rates, andlowvacancyrates,arelikelytofacetheleastemploymentgrowthto203017.Finally,placeslikeBristolandLondon–withcurrentlyhigherpay–willprobablysee continued robust jobs growth, while BradfordorLeicestermightnot(Figure5).

Inotherwords,manyoftoday’sdisparitiesarelikelytobeexacerbatedbythefourthindustrialrevolution.

Yet,theUKcannotaffordtoturnitsbackontechnology.McKinseyGlobalInstituteestimatesthatbyadoptingautomationandartificialintelligence(AI)theUKcouldraiseitsannualproductivitygrowthby1–2%betweennowand2030–amuchneededstep-upcomparedtothezeroornegativegrowthexperiencedinthelast four quarters18.Moreover,withdigitalisation enabling global trade in anever-increasingrangeofeconomicactivities19, falling behind could seriously hurttheUK’scompetitiveness.

25

From trade-offs and zero-sum games to increasing returns and win-wins

Descartes,Malthus,Ricardo,Marx,Pareto.These,andmanyotherphilosophers,haveshapedthemindsets of generations of economists, policymakers, business leaders and tradeunionists.Theirkeyconceptsarepremisedontrade-offs:mindversusbody,growthversussustainability,wineversuscloth,capitalversuslabour,buyerversusseller.(Thisisclearlyahuge–andunfair–simplification,butmadehereforstory-tellingpurposes.)Yet,themoderneconomyisfullofpositive,

virtuouscyclesandincreasing,ratherthan diminishing, returns20.Justthinkof dynamic urban centres, successful technologyclustersandwinner-take-allcompanies.

Perhapscounterintuitively,then,thewaytoaddressthetrade-offsbetweenproductivityandgoodjobsistomovefromazero-summindsettoidentifyingwin-wins.Therearemany.

Itisawell-establishedfactthatcompanies with happier and more engaged workers also perform better (Figure6)21.Itisalsowellknownthathigh-qualitymanagementand

Figure 5: Average gross hourly pay (2018) and projected change in employment (2017–2030).



leadershipresultsinhigherproductivity,better returns from information and communicationtechnologies(ICT)investment,andhigherworkplacemotivation22.Bettermanagersinvestin supporting, training and coaching their staff23.Workerswhoseskillsbettermatch their job requirements are more productiveandmotivated24.Insuchapositiveworkplace,technologyismost likely to augment, not substitute, byovertakingroutine,mundaneandsimpletaskswhileleavingmorecreative,complex,socialandemotionalworktohumans.

Shifting mindsets to unlock productivity and good jobs

So,ifthewin-winsaresoobvious,whyare they not being implemented to a greaterdegree?

The best answer I can offer is that our prevailingnarrativesabouttheeconomyperpetuate too simplistic a mental model;onethatI,too,instinctivelyrevertto.Themodelhasremaineddominant for good reasons and it is oftenenormouslypowerfulinexplainingobservedphenomena.Butitlacksthe

Figure 6: Employee satisfaction.

27

nuance and grit that is now required toshifttheneedleonproductivityandgoodwork.

Too many leaders act as if people were machines that unfailingly respond to commandsorextrinsicincentivesfromabove.Andtoomanypolicymakersfailto recognise that businesses are made upofpeople,not‘homineseconomici’,orutilitymaximisingrobotswithaninfinitecapabilitytomakerationaldecisions.Relaxingthoseassumptionsputsusface-to-facewiththemessyrealityofeverydaylife.Butitisthismessy reality that we must understand and embrace if we want to make progress.

Inthisenvironment,leadershiphasneverbeenmoreimportant.Leadershipto take on the challenging task of changingestablishedmindsets.Fromtrade-offstoincreasingreturns.Fromlinearandadditivetoexponentialandmultiplicative.Fromzero-sumgamestowin-wins.Fromperfectrationalitytocognitivebiases.Fromequilibria

tocomplexadaptivesystems.FromGDPtolifesatisfaction,wellbeingandhappiness.Fromtop-downpolicyleverstohuman-centricpolicydelivery.

The good news is that we do know ‘what works’forchangingmindsets25.Therearefourkeyingredients:acompellingchangestory(‘tellmewhyIshouldchange’),role-modelling(‘showmethatitisapriority’),skillsandresources(‘giveme the knowledge and tools I need in ordertothinkandbehaveinthisnewway’)andreinforcingsystems(‘makeitworthmyattentionandeffort’).

Solet’susethisapproachtomakechangehappeninthethreewin-winareasthatwillleadtobetterproductivityandbetterqualityofwork:deployinggood leadership and management practices26;investinginhumancapitalthroughlife-longlearning27;andusingtechnology to augment humans and to mitigate some of the risks it creates28.Thesearethemeta-policiesfordeliveringabetterfuturefortheUK.



4. What do we know about digitalisation, productivity and changing work?By Mary O’Mahony, King’s College London

294.Whatdoweknowaboutdigitalisation,productivityandchangingwork?

Introduction

Digitalisationhasdominateddiscussionsabouttheeconomyinrecentyears.Dependingonyourpointofview,digitalisation may be seen as a panacea forslowgrowth;aminorchangethatwillhavelittleimpactcomparedtoprevioustechnologies;athreattojobs;oraphenomenon that offers opportunities totransformwork.Thisessayreviewsthe arguments concerning the impact of digitaltechnologiesonbothproductivityand jobs, from the lens of both consumersandworkers.Beforedoingso,itisworthwhilefirsttodefinewhatismeantbydigitalisation.

What is digitalisation?

In technical jargon digital technologies convertinformationintoadigitalform using binary codes that can beunderstoodbycomputers.Theeconomicdebate,however,takesamuchbroaderdefinitionandincludesanything that enables, generates, storesorprocessesdata.Therefore,digitalisation is seen as encompassing broadbandandhigh-speedinternetandmobileinternettechnologies;bigdataandmachine-learningtechniquestoanalysethesedata;cloudservicesthatstoreandprocessdata;newways of doing things that include the internetofthings(IoT),AI,roboticsandaugmentedrealitytechnologies;tools that enhance production such as enterprise resource planning, customer relationship management, and supply chainmanagement;andnewwaysof

communicatingsuchassocialmedia.The digital technologies can be focused onproducers,consumersorboth.Thosewhoemphasisethetransformativenature of these technologies are keen to distinguishthemfromtheearlierwaveof ICTs, which included communications andcomputerhardwareandsoftware.Thepresentdigitalrevolutionaffectsallsectors of the economy, from those that haveseenmanyproductivity-enhancingchanges, such as manufacturing, to those less subject to technological transformations in the past, such as adultsocialcare.

Digital technologies and productivity

Giventhebroadnatureofthisdefinition,it is surprising that, to date, there is not strongevidencethatthesetechnologieshavedelivereddiscernibleadditionstoproductivitygrowth.Wecanidentifyfourareasthathelpexplainthis:measurement of output, adoption lags, market structure and measurement of consumerwelfare.Beforeconsideringeach in turn, it is worth quoting some numbersthatillustratetheissue.

It is now well known that there has been apronouncedproductivityslowdownthatiswidespreadacrossdevelopedeconomies and also that the slowdown startedinthemid-2000sbeforethefinancialcrisis.IntheUS,labourproductivitygrowthslowedfromnearly2%perannumintheperiod1980–2005tojust1%sincethen.Inthesameperiods,growthslowedfrom2.0%to


0.7%perannumintheEU15andfrom2.1%to1%perannumintheEU28.Thisispartiallyexplainedbyweakerratesofcapitalinvestment,butthedata also show a pronounced slowdown inunderlyingtotalfactorproductivity,after allowing for changes in measured capitalinput.

A section of the literature considers thesetrendstobeunbelievablegiventhesizeandscopeofdigitaltechnologies.Somehavesuggestedthat we are just not measuring output correctlyandhavehighlightedfourmain areas where there is cause for concern:notfullycapturinginvestmentsinintangibleassets;thequalityofgoodsandservices;freegoods;andhomeproduction.Researchcarriedoutbyacademics,statisticalofficesandinternational organisations, such as the OrganisationforEconomicCo-operationandDevelopment(OECD),havetriedto put some numbers on these possible sourcesofbiases.Theconclusionspointto the importance of quality change andintangibleinvestmentsasareaswhereofficialdatamaybemissingsomecrucialactivity,butcannotexplaintheproductivityslowdown.Freegoodsarenotreallyfree–theyarepaidforbyadvertisingandthedatatheygenerateandsoareincludedinofficialstatistics.Home production of digital goods andservices–forexampleconsumersbooking holidays at home rather than throughtravelagents–goesbeyondthe boundaries of national accounts andsoisnotincludedintheproductivitystatistics.Butneitherareactivitiessuch as cleaning and child care, which

arelikelytoswampanynewactivitiesarisingfromdigitaltechnologies.Theincorrect measurement of real output is notunimportant,butthemorewedelveintothisthelessconvincedwearethatitexplainstheproductivitydownturn.

A more optimistic argument is that the productivitygainsarenotyetvisibledue to adjustment costs, but are just aroundthecorner.Thisreliesontheideathatbenefittingfromdigitaltechnologies requires reorganisation of production and retraining of workers, ofteninvolvingfirmsspendinglargeamountsonintangibleinvestments.Oncethistransitionperiodisworkedthrough, we should witness increased productivitygrowth.Arelatedargumentis that although there are frontier firmswhohavegonethroughadigitaltransformation, there is also a long tailoflaggardfirmswhoeitherlackthe knowledge, leadership, workforce skillsorfinancetoadoptthenewtechnologies.Thisinturnsuggestsaneedforpoliciestosupportthesefirms.A more pessimistic scenario is based on theobservationthatdigitaltechnologieshaveconcentratedproductioninthehandsofafew‘superstar’firms,ofteninternet-basedgiantswhosemonopolypowerdetersentryofnewfirms.

Finally, there is another measurement argumentthatisgainingground.This is the idea that many of these technologiesproducedatnear-zeromarginalcostactuallybenefitconsumers, and that we need a new measure of economic performance that directlymeasuresconsumerwelfare;

31

onethattakesaccount,forexample,ofthesatisfactionconsumersderivefromtheuseofsocialmediaplatforms.Productivitychangeinthevolumeofoutputofgoodsandservicesmayhaveslowed, but connected consumers are, nevertheless,muchbetteroffinmanywaysthantheywerebeforetheadventofdigitalisation.Althoughthereisobviouslysomethinginthisargument,we are some way from consensus on howtomeasureconsumerwelfare.Evenmore important is that these measures do not directly link to jobs or job quality.Aproductionfocusisthusalsoneeded to gauge the impact of digital technologiesonjobs.

Digital technologies, tasks and jobs

Since the widespread introduction of ICT there has been disquiet about itsimpactonworkers.Theearlierwaveoftechnologiesappearedtobeskill-biased,raisingtheemploymentand wage shares of the highly skilled relativetothosewithlowormediumskills.Theliteraturedevelopedfroma concentration on employment and returnsofindividualswithdifferentcharacteristics to focusing on the taskstheycarryoutintheworkplace.Automation was seen as being detrimental to routine tasks but not to those whose functions are not easily replicatedbymachines–mostlythoseinthemiddlerangeofworkplaceskills.

Digitaltechnologiesarewidelyseenasreinforcingtheseprevioustrends,

but their broader applications threaten not just those with low or medium skillsbutallworkers.Thesesentimentsare strongest when talking about the consequencesofAI,givenitspotentialto replicate many aspects of human work, from workers locating goods in warehouses to doctors treating patients.Theextremepositionisthatinarelativelyshortspaceoftimealmostall jobs will disappear, although more measured responses point to many areas of work that will still need human versatilityandabilitytoinnovate.

A more sanguine approach is one that makes use of the distinction betweenjobsandtasks.Itistasks,notnecessarily jobs, that disappear and many tasks that are automated are mundaneandrepetitive.Peoplewhocarriedoutthesetasksinthepasthavetimefreedtodevotetoother,morerewardingactivities.IfAImanagesto diagnose illnesses, then doctors candevotemoretimetoexplainingoptions to patients and enhancing overallmedicalcare.Theseargumentssuggest that digitalisation can lead to a transformation of work, rather than a replacementofworkers.

It is still too early to say if the digital revolutionwillultimatelyleadtosignificantlylessjobsortobetterjobs.Therewillundoubtedlybesomejoblosses,astherehavebeenfor all technological changes, but implementing the new technologies to gainthemostbenefitfromthemwillprobably also lead to new tasks and morejobs.Therearelikelytobehigh

4.Whatdoweknowaboutdigitalisation,productivityandchangingwork?


personalcostsforthoseindividualscaught up in this transition, and past experiencesuggestsdealingwiththisisverydifficult.RecentworkbytheOECDsuggests that the cost of retraining workerstomovefromjobsatriskofautomationto‘safehaven’jobsisverylarge.

In summary, digitalisation has the potentialtoenhancepeople’swellbeingthrough consuming higher quality goodsandservices,morerewarding

work and more enjoyable use of leisure time.Nevertheless,therearealsolikelydownsides,withsomeindividualslosingjobs and a potential concentration of resources in the hands of a small minority,leadingtogreaterinequality.Any consideration of how we can supportmore‘goodwork’andhigherproductivitymustthereforetakeaccountoftheunevenimpactsofdigitalisationanddeveloppolicyresponsestosupportthose most at risk by the pace of change.


5. Technology, productivity and good work: views from the groundBy Fabian Wallace-Stephens and Sarah Darrall, RSA


Introduction

PaulKrugman,theNobelPrize-winningeconomist,famouslysaid,‘productivityisn’teverything,butinthelong-runitisalmosteverything’.Hewastalkingabouttheeconomyasawhole–themoreproductivetheutilisationoflabourand capital, the more prosperous an economy–butthesameprincipleisalsolargelytrueoffirms.Puttingtoonesiderent-seeking,profitscanonlybegrownbythemoreeffectiveuseofpeopleorinvestment.Afirmnotimprovingitsproductivityisafirmthatis,atbest,stagnating.

This presents something of a logical dilemmaforthisenquiry.Ontheonehand,theRSAFutureWorkCentreandCarnegieUKTrusthaveestablishedacomprehensivestrategyformeasuring‘goodwork’,groundedinsevendimensionsofjobquality:termsofemployment;payandbenefits;health,safetyandpsychologicalwellbeing;jobdesignandnatureofwork;socialsupportandcohesion;workervoiceandrepresentation;andwork-lifebalance1.Furthermore, as this essay collection demonstrates, this conceptualisation of goodworkhasapositiverelationshipwithproductivity.

Yet,thisiswherethequandaryemergesbecauseifproductivityis‘everything’tofirmsandgoodworkcanclearlyhelp organisational leaders raise it, thenweshouldprobablyexpecttoseemanymoreexamplesofgoodworkbeingusedtoboostproductivityinthecontemporary British economy than wedo.Thisisimportantbecauseanysteps policymakers take to encourage higherproductivitythroughgoodwork must clearly take account of how organisationalleaderstakeday-to-daydecisionsaboutwork.Atheoreticalperspectivealonemightmissbarrierstobestpracticethatwouldseemobviousatfirm-level.

Tocomplementthedata-ledfindingsof other contributions to this collection, thisessayattemptstoprovidefreshinsightsintothelivedexperienceofthemodernworkplace.WorkingwithCarnegieUKTrust,weconvenedalargeworkshop with employers from a range ofdifferentsectorsoftheUKeconomy.Wealsoconductedtwoin-depthsitevisitstoafranchisedrestaurantchainandanNHShospitalwherewespokedirectly with workers, managers and HRrepresentativestolearnfirst-handhow technology is transforming their organisationsandtheworkinglivesoftheiremployees.Ourconclusionsarequalitative,butwehopethegranularityprovidedcanaddarichnesstotheongoing debates about good work, technologyandproductivity.

355.Technology,productivityandgoodwork:viewsfromtheground.

Units through the door: how employers think about productivity

Thetwoorganisationswevisitedaspartofourenquiry–afranchisedrestaurantchainandanNHShospital–areclearlyverydifferent.Theyhavea fundamentally different approach todemand:theNHShospitalisonlyconcerned with managing demand, whilst the restaurant is clearly looking togrowdemand.Despitethis,wefound both organisations thought aboutproductivityinsimilarwaysand attempted to raise it largely by measuringpointsofdeliveryefficiencywithintheorganisation.

Whenweaskedtheowneroftherestaurant directly, ‘what does it mean tohaveaproductivedayatworkhere,andhowisitcommunicatedtostaff?’heexplainsthat‘itisallaboutspeedofservice’and‘unitsthroughthedoor’.Therestauranthasdeployedarangeofsensor-basedtechnologiestomeasure this, including a dashboard that measures how long it takes for food to be ready from the point of making an orderatthedrive-throughtothepointofcollection.Evenwhenpresseddirectlyabout whether this measurement can capturenotionsofquality–forexample,whether the food is tasty or hot enough –hedefaultedtothenotionthatspeedofservicecanalsocapturethisaspectofproductivity.Inpart,thisreflects

the high degree of standardisation (someofwhichisautomated–seelater)presentintheproductionline:there are few things other than speed thatappearvariablewheneverythingisworkingasitshould.However,italsoreflectsanoperationalethosthatelidesproductivitywithefficiency,withmeasurement entirely focused on the latter.Thedashboarddoesnotevenmeasure how many units go through the door, or output per hour, but rather the averagetimeittakestheteamtoserveacustomer.

Wefindasimilarethosinthehospital.Onerepresentative,whenaskedthesamequestions,gaveasimilaranswer:‘howquicklypeoplegetoutofhospital’.But our discussion here highlighted moretensions.Forexample,weweretoldhowthisapproach,drivenprimarilyby centrally directed targets, often creates stress for staff and that ‘there isadelicatebalancingact’aspatientoutcomesalsomatter.Forexample,PatientReportedOutcomesMeasuresareusedtoevaluatethequalityofcaredeliveredbyClinicalCommissioningGroupsforpatientswhohaveundergonehipreplacementsurgery.Nevertheless,targetssometimesseemtohaveanoperationalpriorityovercare.Asoneintervieweeputit,althoughhealth professionals will get ‘told off by managers for not meeting time outcomes’theyarenotheldtoaccountinthesamewayforhealthoutcomes.


The myth of automation: how employers are deploying new technologies

Atbothoursitevisitsandouremployers’workshop, we found the deployment of new technology to be central to howleadersseektoboostproductivity;yet, this does not typically appear to bedrivenbyadesiretoimproveworkquality, or at least that is a second order consideration.Acrossallourresearch,conversationsabouthowtechnologyistransforming management practices, such as performance management or shift scheduling, were much more common than those about automation substitutinghumanwork.

Perhapsthelargesttechnologyprojectweobservedwasthedeploymentofself-servicekiosksatthefast-foodrestaurant.Thishasreducedthenumberofstaffworkingontillsbuttheoverallheadcount has stayed the same, with more people now working in the kitchen.Thesekiosksarethereforenotacostsavingintermsofstafftime,buthaveproventoberevenuegenerating–customersspendanaverageof£1moreperorder.Therearealsogoodworkbenefits:inthekitchenautomateddrinks machines free up workers as they are now only needed to place lids on cups,while‘intelligentgrills’usesensorsto automatically detect how long to cookdifferentsizedburgers.Thishasallowedtherestauranttoserveawiderrangeofproducts.Thedatadashboard,collectedbyavarietyofsensorsatthekiosksthemselves,isusedtoprovideintelligencetomanagement:‘aftera

bad shift, we can pinpoint things, use thedataasaconversationstarterwithworkers to understand why there was a problem’.

At the hospital a handful of robots havebeendeployedinthecancerward.However,incontrasttosomediscussionswe had elsewhere in the hospital, their deploymenthasbeendrivenbypatientoutcomesratherthanefficiency.Asonerepresentativeputsit:‘intheolddays,youhadtohaveyourprostateremovedthroughopensurgery.Nowwe can operate with much greater precision’.Infact,bysomemeasuresthis might actually reduce the number of operationsconducted:‘patientsspendlesstimeinhospitalbedsandhavebetter outcomes, but physicians are lessproductiveastheproceduretakeslonger, and the equipment is also more expensive’.

At our workshop, we also heard how NHSTrustsaredeveloping‘digitalcontrolcentres’thatusereal-timedatato make more accurate predictions about patient demand to optimise the allocationofstaffacrossmultiplesites.Clearly,themoreefficientutilisationoflabourinthiswaywould,bydefinition,havesignificantproductivity-boostingpotential, but ensuring it is rolled out in a way consistent with good work willbeasignificantpolicychallenge.The key is to ensure that the risks and benefitsofflexibilityaresharedbybothemployer and employee,thusavoidingwhat the Taylor Review of Modern Working Practicesdefinedas‘one-sidedflexibility’2.

37

Risk or reward: how technology affects good work

Inthefast-foodrestaurant,newtechnology was primarily introduced to improveefficiencyandgeneratehigherconsumerdemand.However,wealsouncoveredgoodworkbenefits.

Oneworkersuggestedthatsheenjoyedher job more since these new systems (automationinthekitchenandtheself-servicekiosks)hadbeenintroducedbecausethey‘madethingseasier’;others noted how the kitchen was nowaquieterandevensaferworkingenvironment.Indeed,themostcommoncomplaint about technology was that it would occasionally malfunction, which would then make their jobs much harder.Clearly,technologyintroducesnew dependencies into the business, but most were keen to stress how, relativelyspeaking,itwasbeneficial.Nevertheless,theemergenceofthesedependencies does emphasise the point that technology can potentially affectskilllevelsandworkerautonomythrough lowering the task demands or standardisingjobrequirements.Theexperienceofthisstandardisationcameoutinsomeinterviews.Oneworkersharedherexperienceofworkingsoquickly during a night shift that she ‘felt likearobot’.

Atourhospitalsitevisitwewerealsowarned about how technology can placeexcessivestrainonworkers.Onerepresentativespokeabouttheintroduction of electronic health records andhow‘thiswillchangeeverything’.

The concern was that the technology washavingtheinverseeffecttothatintended and meant doctors were spending more time doing paperwork, leadingtofearsofphysicianburnout.

Wheretherestaurantencounteredproblemswiththeroll-outoftechnology,trainingwasviewedbymanagementas something of a panacea for all performanceorproductivityproblems.Although workers agreed training was important,theysharedwithusseveraladditional insights about what they feltwasnecessarytoworkproductively,most of which referred to good management.Goodmanagersweredescribed as those who were ‘good at communicating’andwho‘knowwhoisbest suited to different tasks and how tomakethebestofabadsituation’.Workersalsofeltitwasimportanttohaveadequateworkervoicechannels.By this they meant a line manager who would‘letthemgivetheirpointofviewandlistentotheiropinion’.

Onemethodwesawusedbymanagerstomotivateworkersattherestaurantmight best be described as the ‘gamification’ofwork–competitions,withprizesavailable,forproducinggoodperformance.Someworkerswelcomed this, suggesting it made their rolemoreenjoyable.Thedashboardthereforeeffectivelytappedintooneofthemoresubjectiveaspectsofgoodwork:pride.‘Ifeelveryproudtobeinone of the top performing restaurants inthecountry,’asoneworkerputit.Intheory, there could be a darker edge tothis–wherepoordataisusedfor



punitiveperformancemanagement.However,themanagementtoldusthedatawasonlyeverusedforsupportiveconversations,andtheworkersweintervieweddidnotseemunduly concerned by the possibility of workplace monitoring being used in this way.

The robots used in cancer surgery providedagoodexampleofwheretechnologyishavingmorepositiveeffectsonhealthcareprofessionals.Long-termoccupationalhealthacrosstheNHSwasidentifiedasamajorissuebytheNHSrepresentativeswespoketo.Robotsareseenasatechnologythat could enable people to ‘work much longerfromanearlyage’;forinstanceby reducing risk of back injury because surgeons ‘could be operating on someonewhilesittinginanotherroom’.

Wealsosawanexampleofhow,whenworkershaveautonomyoverthetechnology they are operating, it can leadtounexpectedbutproductiveoutcomes.Inthehospital,iPadswereinitially introduced for physicians to update notes with, but it transpired that they were actually more useful fortakingphotosandexaminingtheprogressionofinjuries.Similarly,atouremployers’workshop,representativesfrom the transport sector told us about howworkerswereusingtheirinitiativeand communicating delays on the LondonundergroundviaTwitter.Thisgoes against working procedure but deliversamoreeffectiveservice.Itis

clear here that when autonomy interacts with technology, it can generate greaterproductivity.Notonlythis,itcould allow workers to feel in control, which encourages greater acceptance ofinnovation.Autonomyisnotforeveryone,however.Workerswespokewithattherestaurantvaluedflexibilityoverautonomy,pointingtothefreedomtochoosehowtofittheirworkpatternsaround their home life as one of the key benefitsofworkingthere.

Central to the impact of technology on workers is whether it interrupts their coreorperipherywork;thatis,whetherit impacts on the elements they identify with and care most about, or on those that they feel do not contribute to their successorhappiness.Ifitisthelatter,then workers tend to be largely happy with implementation and do not require in-depthconsultation.Ifitistheformer,however,disruptionisfeltmuchmoreprofoundly.Intherestaurant,manyofthe tasks did not intrinsically pertain to the core category, and instead workers citedprogressionandflexibilityastheirkeydrivers,andhenceweremoreacceptingoftechnologicalchanges.Incontrast,muchoftheworkintheNHShospital hinged on core tasks, and there we found technology adoption to be slowerandmorepained.Similarresultswere found in ethnographic research byGoogle:officeworkersperceiveditto be acceptable for AI to substitute peripheral work but resisted its use for corework.

39

Who controls the future: worker agency in an age of radical technology

Lackingacrossbothsiteswasasensethatworkershadanyagencyovertheimplementationofnewtechnologies.Asonefast-foodrestaurantworkertoldus:‘Idon’tknowwhat’scoming–itshould be a balance between people and technology’.Butdecisionstointroducenew technologies appeared to be much moredrivenbyadesiretoimprovecustomerexperience,althoughthiscantaketime:‘whenwefirstintroducedit[theself-servicekiosk]customersdidnotlikeit,thenlaterwhentheyvisitedour other stores, they asked why we did nothavethemthere!’Meanwhile,inthe hospital we were told that there are hopesthatinnovationintheNHSwillbedrivenbypatients,butthatthiscanslowdown the pace of change because ‘apart from“expertpatients”,mostpeopledon’tknow what they would change about usinghealthservices,that’swhytheysuggestthingslikethefood’.

A common theme across our enquiry was that both managers and workers are broadly optimistic about new technologies butdesireamoreworker-centredapproachtoadoption.Manyemployerswespoketo as part of our enquiry highlighted the importance of job design in ensuring that technology changes will promote both productivityandgoodwork.Toborrowthewordsofoneworkshopparticipant:‘theextenttowhichautomationwillchangethe way tasks are allocated is essentially an ethicaldecisionononelevel,aswellasamanagementdecision’.

At our workshop one employer told us how they had used data to make decisions about technology that improvejobdesign:‘weusedtohavehighturnoverinaparticularadminrole.Basedonthisdatawedecidedto automate the role and people now spendmoretimeinclient-facingroles’.Some of the restaurant workers also spokeaboutthispoint.Inreferencetoindividualiseddata,onesaid,‘Iwouldn’tmind it at all if it helped with my progression,thenit’suseful’.Theycouldseethebenefitsonapersonallevel,recognising that it could highlight how theycouldimprovetheirperformanceand the subsequent potential for promotion.Wefoundsimilarinsightsatthe hospital, where workplace shortages haveseenhealthprofessionalsother than physicians step up to takeonmoreclinicalresponsibilities.Onerepresentativetellsushow‘inEndoscopy,wedidnothaveenoughdoctors, nurses are now clinicians, everyoneelsehasmovedupalayer’.However,headdsthatnoteveryonewantstobea‘quasidoctor’andso‘itisimportanttoreleasesomepeople’stimetogetonwithpatientcare’.Andtheyhave‘gottomakesurepeoplearepaidrighttoo’ifgivenadditionalresponsibilities.

Workervoiceisseenbyemployersascrucialtoalleviatingtheseconcerns.Asone workshop participant argued, ‘if you’renothappywiththetasksyouaredoing you need to be able to speak to yourmanagerandcommunicatethis;youneedtohavesomecontroloverjobdesign’.Employerswereequallyeagerto



pushforchangesurroundingvoiceandrepresentationwhenradicallylabour-shapingtechnologyisrolledout:‘we’regoingtoneedtofindpracticalanswerstothequestionsofhowyouinvolveworkersinthoseconversationsaroundthechangingworkplace’.

Conclusion: job design for good work

This last insight emphasises perhaps thecentralmessageofourresearch.Across both sites we found support for the argument that technology tends to change tasks, rather than whole occupations.Therefore,iftechnology

istobeadriverforgoodworkandproductivity,itwillrequireastrongerfocusbyemployersonjobdesign.Astheroleofworkervoiceinalleviatingconcerns about technology shows, employers’approachtojobdesignneedstobebothholistic(toooftenjobdesignstrategiesfocusexclusivelyon tasks, with less thought about how those tasks ultimately relate to jobs or anorganisation’swidersystems)andmediated through a process where workershavesomeagencyovertheoutcome.Yetiffirmscanapproachtechnologyroll-outinthismanner,ourfindingssuggestitcanhaveakeyroletoplay in the future of both good work and higherproductivity.


6. Can gig work be good work?By Gill Dix, Acas


Introduction

Thegigeconomyseemstohavecaptured the public and the policy imagination.Theformerstemsfrom a fascination with the notion ofafast-moving,butofteninvisiblebusinessmodelthatisdrivenpurelybytechnology.Thepolicyfocusisrootedinadeeperuneaseaboutallformsofso-called‘atypical’work,withtheirstrongassociationswithinsecurity,call-oncall-offlaboursupplyandlowpay.

In broad terms, the gig economy refers toshort-termemploymentcontractsor freelance work, as opposed to traditional,permanentjobs.Butitoftenrefersmorespecificallytotheuseofonline platforms for sourcing such ‘gig work’1.Althoughfooddeliverycyclistsmaybeoneofthemostvisiblesignsofthe gig economy, in reality the type of work undertaken ranges from unskilled physicalworktoskilled,creativeandprofessionalwork.

The business model on which gig work thrivesseemstoofferthebestofboth worlds, with the ability to tightly scheduleandactivateworkerstomeetcustomerdemand.Theresult?Thepotentialformaximisingproductivityandflexibility.Butifweareinterestedinallyingproductivityandgoodworkwithin this growing economy, we need to addressconcernsaboutthevulnerabilityof such workers and employment practicesthatcanamountto‘badwork’.

Although estimates of the number of gigworkersvary,theoften-heardclaimis that there are almost as many gig workersinGreatBritainastherearepeopleworkingintheNHS(1.2million)2.

ResearchfromtheTUCfoundthatnumbers are growing fast, with nearly 1in10(9.6%)working-ageadultssurveyedworkingviagigeconomyplatformsatleastonceaweekin2019,comparedtoaround1in20(4.7%)in20163.Nomatterthesize,theatypicalcorneroftheeconomyiscomplexandmulti-facetedanditisrightlydemandinganurgentreviewofwhetherandhowitcanbeconsideredgoodwork.

Balancing flexibility and job security for good work

Gigwork,alongwithotherformsofatypical contracts, are at the heart of an ongoing debate about how we achievetherightbalancebetweenbusinessflexibilityandindividualjobsecurity.Dependingonyourpointofview,gigworkersmaysymbolise‘thevulnerablehumanunderbelly’oftheUK’slabourmarket4 or ‘the springboard forentrepreneurialsuccess’5.

Whileclarityaroundemploymentstatusand subsequent entitlement to rights maybeonthehorizonwithforthcominglegislation,gigworkersthemselvesseemdividedonhowtogetthisbalance.InareportfromtheCIPD6,63%ofgigworkersagreethatthegovernmentshould ‘regulate the gig economy so that all those working in it are entitled toreceiveabasiclevelofrightsand

436.Cangigworkbegoodwork?

benefits’.Yet,atthesametime,half(50%)saythatpeopleworkinginthegigeconomydecidetosacrificejobsecurityandworkers’benefitsinexchangeforgreaterflexibility.

TheLowPayCommission7 is concerned thatone-sidedflexibilityisaproblematicfeature of the modern economy, because ‘some employers misuse flexibleworkingarrangementstocreateunpredictability, insecurity of income and a reluctance amongst some workers toassertbasicemploymentrights’.Thegovernmenthasissuedaresponsewith a focus on securing hours of work andnotificationofcancelledhours.Othernon-legislativeinitiativesarealsoemergingtoredressthebalance.Forinstance,theLabourxchangeapp8, supported by Community, stops employers from hiring the same person more than three times, and instead suggests they offer them a permanent post.Elsewhere,weareseeinganincreasingnumberof‘WorkerTech’solutionsaimedatimprovingaccesstoprotectionsandrightsforgigworkers.

Thriving while being out of sight

Wellbeing–physicalandmental–is increasingly part of the debate abouthowweliveandwork.Butwhen it comes to gig work, out of sight could easily mean out of mind, eclipsing the importance of protecting healthandwellbeing.Thisisalsoaproblem for remote workers in more traditional workplace settings, but in

the gig economy, there are the added challengesofeffectiveawareness-raisingandaccesstosupport.

Againthepictureisparadoxical.Somestudies,includingthosebyINSEAD9 andOxfordMartinSchool10 suggest thattheflexiblenatureofgigworkand the autonomy it can bring may lead to greater life satisfaction and a‘boost’inmentalhealth,althoughthedrivingfactorwouldseemtobeworker preference when it comes to following this line of work11.AreportfromGallup12 found that ‘compared with traditional workers, independent gigworkersenjoymuchhigherlevelsofflexibility,creativity,autonomyandevenfeedback’.Butagainmuchwouldseemtorestwithchoice–withthoseworkingas‘freeagents’inthiseconomyreporting greater satisfaction than those there‘outofnecessity’.

The limitations and opportunities for social cohesion and voice

An aspect of good work proposed by theCarnegieUKTrustandRSA13 is intended to measure the nature of the relationshipswehaveatwork.Inthecase of gig working, we know it can involvenotjusttheabsenceofpeers,butalsotheabsenceofidentifiablelinemanagers.Gallup14 found that because gig workers ‘are not true employees,itisdifficulttodirectlymanageandmotivate’them‘usinga typical approach to performance management’.


Performancedriversmayalsobenarrow.Wood15 found that algorithmic rating-basedcontroliscentraltotheoperation of remote gig platforms and ‘workers with the best scores and the mostexperiencetendtoreceivemoreworkduetotheplatforms’algorithmicrankingofworkerswithinsearchresults’.This leads workers to work long hours to please the rating system and to compete with other workers potentially basedanywhereintheworld.

Similarly, the dispersion of gig workers presents problems in terms of how organisations can properly engage and communicatewiththem.Andeveniftheyareseen,cantheybeheard?Thereareencouragingsignsthatworkervoiceisbeginningtoreinventitselfwiththehelp of campaigning platforms such as Coworker.organdOrganise.Further,thecreationofself-organiseddigitalcommunities, as outlined in research by OxfordUniversity,hasplacedsomeofthe negotiating power back in the hands of workers who can ‘warn each other of bad clients, recommend good clients andattempttoinfluencepay’.

Conclusion

Gigworkisatthefrontlineofanongoing transformation of the social contract.Withincreasingbusinessglobalisation,theprevalenceoflongsupplychainsandcomplexwebsofcontractual arrangements, there may be less of a distinction than we think betweenthealternativeplatformeconomy and what constitutes

‘standard’work.TheWorldBankhasargued16 that facets of the labour marketsindevelopedanddevelopingcountriesarealreadyconverging.

If the future of work is to be based upon corevaluesthatcanbeappliedacrossall parts of the economy, then there are three issues that need our urgent attention:

Find the right contractual status in law to protect rights and promote job security, while also recognising the importance ofworkerpreferenceandself-identification.Thepointhereisnotjustaboutlegalentitlement;it is also about shifting the culture of uncertainty and rebalancingthegiveandtakeoftheworkplacerelationship.

Use the right voice channels inordertoamplifyworkervoiceandrepresentation.Thisisanissue that goes back well beyond any current preoccupation with the gig economy, but is exacerbatedbytheremotenessof relationships and low expectationsofworkinglife.

Build new forms of workplace relations tofittheeconomy. There is the need for a new, realisticnarrativeonwhatgoodworking relations can look like –amodelthatdrivesproductivitybut also worker engagement and wellbeing in the absence of regular,personalinteraction.

http://Coworker.org


7. Enabling fair work, productivity and inclusive growth: lessons from ScotlandBy Patricia Findlay, the Fair Work Convention and the University of Strathclyde


Introduction

Fairwork–thatoffersopportunity,security,fulfilment,respectandeffectivevoice,andthatcentresonreciprocityandmutualbenefit–liesat the heart of policy priorities in Scotlandaimedatdrivingproductivity,growth and inclusion1.Fairworkisexplicitlyembeddedintheactivities,strategies, policies, practices and performance indicators of the Scottish Governmentanditspublicagencies.Crucially, fair work is increasingly recognised as important by employers, employers’organisations,tradeunions,campaigningandcivilsocietyorganisations,fuellingaconstructiveandchallengingdebateacrosscivicScotland.

Thishasn’thappenedovernight.Thefair work agenda in Scotland builds upon multiple stakeholder networks (researchers,unions,employers,policymakers and campaigning organisations)thatacknowledgethecentrality of work and workplaces to economic,socialandciviclife,andtheneed to engage holistically with distinct stakeholderinterestsandobjectives

inaddressingcomplexproblemsthatrequireinnovativesolutions.These‘wicked’problemsspanlowrelativeproductivityandinnovation;lowpay,unequalpayandin-workpoverty;under-employmentandskillsunder-utilisation;workintensification;incomeinequalityand limited social mobility2.Addressingthepotentialbenefitsoffairworkforproductivityinvolvesfocusingontheneedforsupportivemanagementpracticesthatharnesstheproductivepotentialoflabour.

This essay makes four key arguments about the crucial need for, and role of, fairwork.Thefirstisthatfairworkisnecessarytodeliverinclusivegrowth.The second is that a commitment to fair workdrivesabetterapproachtovaluecreation and capture and is a choice (withinconstraints)thatemployerscanmake.Thethirdisthatemployersaretheprimaryactorsindeliveringfairwork:askeydecisionmakers,theirchoices of business models, technology adoption,andmanagementandHRpractices reallymatter.Thefourthisthatconstructiveengagementbetweenkey workplace stakeholders supports employersindeliveringfairwork.

477.Enablingfairwork,productivityandinclusivegrowth:lessonsfromScotland.

Fair work is key to delivering inclusive growth

Asinclusivegrowthhasgainedtractioninpolicydebates,definitions3havefocusedheavilyontwocomponents:improvingopportunitiestoparticipateineconomiclifeandtheneedtobenefitfromthisparticipation.Theseare,ofcourse, linked because participation withoutsharinginbenefitsmakesgrowthunjust,whilebenefittingwithout participating in economic life represents a welfare approach rather than an approach to growth4.Implicitin discussions of inclusion is a growth effect that is hoped to arise from more peopleengagingineconomicactivityandfromthepositivewidereconomicbenefitsthereof.

However,whatismissingiswhatcomesbetween participating in economic lifeandsharinginitsrewards–thatis,theprocessofcreatingvalue.Fairworkspansallthreekeyelementsofinclusivegrowth:byensuringthatworkershavefirst,opportunitiestoparticipateonequal terms in work, second, that they haveaconstructiveroleinthevaluecreation that participation entails, andthirdthattheyareabletoderivebenefitsfromthedistributionofthatvalue5.Theworkplaceis,therefore,thecrucial domain in bridging inclusion and growth.

Thecosttoindividualsofnothavingfairworkisoftenplaintosee.Butbusinessesalsomissoutonthebenefitsthatfairworkbrings:moreengaged,committedand adaptable workers who identify

challenges,solveproblems,offerinsightsandideasforbusinessimprovementandwhocreatemorevalue.Governmentsandsocietymissoutontaxrevenues,and on returns from education and skills investment.

Employers are the key actors in fair work

Employers are at the heart of how fairworkmightbettercreatevalueanddriveproductivity.Itisemployerswhomakethedecisionsthatgovernthe character of work and workplaces, largely unconstrained by policy beyond statutoryminimumstandards.Thisis not to underestimate the potential power of regulation, but to recognise itsinevitable‘bluntness’asadriverofchange within widely heterogeneous businesses.ItisalsotorecognisewidelydifferingappetitesintheUKfor regulating the labour market and workplaces, and that employment law andcorporategovernancepowersarereservedtoWestminster.

Whetherornotindividualscanaccessfairworkisn’tdowntotheluck,norisitsimplyareflectionoftheirindividualtalents,skills,qualificationsandeffort.Employers’decisionsshapethekindofworkthatisavailable.Thosedecisionsare constrained but crucially, the constraining factors do not determine thefairnessorotherwiseofwork.Businesseseveninthesamesectorscan–anddo–makequitedifferentdecisionsthatshapethenatureofwork.Ofcourse,someemployerschoose


business models that are in character inimicaltofairwork.Wherethisisthecase,moreeffectiveregulationandenforcement may be needed to make a difference, as these employers are unlikelytoberesponsivetopersuasionandsoftinfluence.

Fair work is a choice employers can make

Employers as key decision makers can choosetoachievetheiraimsthroughcommittingtofairwork.Fairworkcandriveadistinctive–andbetter–approachtocreatingvalueandsharingit.RecentworkbyFindlayet al.6 highlightsemployers’choiceofbusinessmodelsthat‘designin’practicestoreducein-workpovertythatenhanceemployee performance and business outcomes.

Positivechoicesareavailabletoemployersacrossallfivefairworkdimensions–opportunity,security,fulfilment,respectandeffectivevoice–thatcanenhancebusinessperformanceandproductivitydirectlyandindirectly.Employerswhosupportfairopportunitytoenter,developandprogressinworkcanbenefitfrombetter

reputation, recruitment and retention, andfromhavingamorediverseworkforce with a richness of talent and ideas.ManagementandHRpracticesthat promote security and stability of employment, income and working hours canreduceturnover;increasereturnsfrominvestmentintraining;generatetrustandcommitment;increasewillingnesstolearn,adaptandchange;andthediscretionarybehavioursthatsupportproductivityimprovement.Byprovidingfulfillingworkthatunderpinsself-beliefandself-worth,employerscansupportimprovedtaskparticipation,and where work is designed to harness skills and talents, this helps unleash creativityandinnovation.Ensuringrespectatworkandensuringdignifiedtreatment enhances health, safety and wellbeing,withpositiveimplicationsforproductivity.Respectfulrelationshipsatworkimprovecommunicationandsocialexchange,encourageideagenerationand learning and can support workplace cohesion,allofwhichcanimproveperformanceandproductivity.Crucially,where employers seek out and listen toemployeevoiceandsupportstaffparticipationindecision-makingatwork,staffaremorelikelytoresolveproblemsandconflicts,andtocontributecreativelytoperformance.

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The role of collaboration, challenge and constructive engagement by stakeholders

Notwithstandingemployers’centralrole,acomplexecosystemofactorsand institutions can support and challengeemployerstodeliverfairwork.TheestablishmentoftheFairWorkConvention(FWC)in2015andthelaunchofitsFairWorkFrameworkin2016weredefiningmomentsforfairworkinScotland.TheFWC’sroleistoadviseScottishGovernmentandtoadvocateforfairwork.TheadvicefocusesonhowScottishGovernmentmightuseanypolicyleversatitsdisposal to support fair work and how itmightinfluencetheUKGovernment.TheadvocacyconnectstheFWCtoemployersandtheirrepresentatives,unions, employees, public agencies and bodies, regulatory and professional bodies,campaigninggroupsandcivilsocietyorganisations.

A number of actions clearly signal thedegreeofgovernment,andFirstMinisterial,commitmenttomakingfairworkareality.TheseincludetheScottishGovernment’sacceptanceoftheFWC’sFramework;itsattentiontofairwork across a range of its policies and priorities;therequirementtohelpdeliverfairworkplacedonpublicagencies;thedevelopmentofawide-rangingFairWorkActionPlanwithingovernment;and, notably, the incorporation of fair workmeasureswithingovernmentperformanceindicators.‘Qualityjobsandfairworkforall’isenshrinedinas one of 11 national outcomes in

Scotland’sNationalPerformanceFramework,whichsetsoutavisionofnational wellbeing and charts progress towards this through a range of social, environmentalandeconomicindicators.

TheapproachoftheFWChasbeenvoluntaristandsocialpartnership-oriented–winningoveremployerstofairworkbypresentingitspositiveimpactsonbusiness;adducingandassessingevidencetoidentifywhatworksbest;sharingbest(andworst)practice;engaging in continuing dialogue on areasofagreementanddisagreement;andhavingavoicethatengageswithdifferent groups of workers, different sectorsandsizesofbusiness,andwith the many different challenges thatemployerscurrentlyface.Theseactivitiesentailpractice,policyandresearch challenges, but also highlight the opportunities and potential of fair work to address real issues relating to labour supply, economic uncertainty, automation, demographic change and environmentalsustainability.

Improvingandenhancingwhathappensin work and workplaces is, or should be,akeyfocusofpublicpolicy.Thedeliveryoffairworkcanbeshapedthrough business support, economic developmentandskillsprovision;thecreativeuseofprocurementapproachesandgrantfunding(FairWorkFirst7);andby nudging employers towards fair work as an important component of social legitimacyandbusinessresponsibility.Policymakerscanalsousetheirinfluenceto deter business approaches where there is little reciprocity, where workers

7.Enablingfairwork,productivityandinclusivegrowth:lessonsfromScotland.


carry the burden of risk or where negativeoutcomesrequireremedialactionbythestate.

A crucial part of the fair work agenda is to establish common cause with trade unions, consumers, campaigning organisations,civilsocietyorganisationsand communities, and to increasing their engagement with businesses andotheremployers.TheWorkingTogetherReview8thatadvocatedtheestablishmentoftheFWCmadeaclearstatement about the contemporary relevanceoftradeunionswhoareacknowledged as legitimate actors and important resources in the pursuit offairwork.Unionshaveengagedconstructivelywiththefairworkagenda,recognisingtheirownmembers’priorities but also employer and sector pressures,astheFWC’srecentInquiryinto social care9illustrated.

Conclusion

Fair work in Scotland is an aspirational agenda steeped in workplace practice andexperience.Atitsheartisanexplicitrecognition of the need to balance the rights and responsibilities of all workplace stakeholders and to build mutualbenefitforworkers,employersandsociety.Allfivedimensionsoffairworksupportenhancedvaluecreationandareinextricablylinkedtowellbeing.

Although considerable progress has been made, there is a long way to gotoachieveScotland’sambitiontobe a world leading fair work nation10, anddeliveringfairworkremainschallenging, requiring patience and perseverance.Capturingimpactiscomplex,butmeasuringprogressremainsimportanttodeliveringonthisambition.Thefairworkagendaaffordsan enormous opportunity, but it also bringsasignificantresponsibilityforstakeholderstobecreative,developnew thinking, identify new solutions and developtheirowninternalcapability.The emerging debate on fair work in Wales,andgoodworkatUKlevel,offerimportant opportunities for learning from similarities and differences of approach.Crucialtotheprogressoffairwork is embedding it in the architecture ofgovernmentandinthenarrativesofemployers,workers,unionsandcitizens.


8. Fair work, low pay and productivity in WalesBy Alan Felstead, Cardiff University


Introduction

Productivitymattersbecauseitisthemaindeterminantoflivingstandardsandsoitaffectsusall.Higherproductivitymakesemployersmorecompetitive,providesthefoundationfor wage increases and increases the government’staxrevenues.Everyonestandstobenefit.ThereverseisalsotruewithlowproductivitylikenedbyFrancesO’Grady,generalsecretaryoftheTUCtoa‘self-inflictedwound’witheveryonelosingout.Thisshortessaydemonstrates how this dire warning

hasplayedoutinWaleswherebothproductivityandpayarerelativelylow.

ThenegativeconsequencesoflowproductivityarerecognisedbytheWelshGovernment.Initscurrenteconomic strategy, Prosperity for All: Economic Action Plan1,forexample,itismentioned19times.Figure7showsthescaleoftheproductivitygapintheUK.Accordingtothelatestavailableevidence2,Walesissecondfrombottominthelabourproductivityleaguetable,fallingshortoftheUKaverageby16%.OnlyNorthernIrelanddoesworse.

Figure 7: Labour productivity by region/country, 20173.

Northern Ireland

Wales

East Midlands

Yorkshire and The Humber

West Midlands

North East

South West

North West

East of England

Scotland

South East

London

80 90 100 110 120 130 140UK=100

538.Fairwork,lowpayandproductivityinWales.

The picture gets no better when patternsareexaminedwithinWales.Figure8showsthatproductivityisbelowaveragefortheUKinallofpartsofWales.In2017thesub-regionwiththehighestleveloflabourproductivitywasFlintshireandWrexhaminNorthWales,butevenhereproductivitylaggedtheUKaverageby3%.Thelowestlabourproductivityperformancewasintheruralsub-regionofPowys,withproductivity35%belowtheUKaverage;thiswasthelowestproductivitylevelacrossallthesub-regionsintheUK.

Thisisbothreflectedin,andreinforcedby,relativelylowpayinWales.WorkersinWalesarelowerpaidandtheprevalenceoflowpayishigherthanintheUK. Themostrecentdatafor2018suggestthattheaveragepaylevelinWaleswas90%ofthatintheUKasawholeand71%oftheaveragepaylevelofthoselivinginLondon.ThisisapatternthatisreflectedintherelativelypoorproductivityperformanceofWalesversusotherpartsoftheUK.Mediangrossweeklyearningsforfull-timeadultsworkinginWaleswere£509inApril2018,whileintheUKtheywere£569.MediangrossweeklyearningsinWaleswere the second lowest amongst the 12 UKcountriesandEnglishregions5.

Figure 8: Labour productivity in Wales by sub-region, 20174.

Flintshire and Wrexham

Central Valleys

Cardiff and Vale of Glamorgan

Monmouthshire and Newport

Bridgend and Neath Port Talbot

Gwent Valleys

Swansea

Isle of Anglesey

South West Wales

Conwy and Denbighshire

Gwynedd

Powys

60 70 80 90 100UK=100


Overaquarter(26%)ofemployeesinWalesin2018earnedlessthantheRealLivingWage.Ratherthanfalling,thissharehasbeenrising.TheproportionofemployeespaidlessthantheRealLivingWagewas2percentagepointslowerin20126.Furthermore,in2017Waleshad the second joint highest proportion ofjobsthatpaidbelowtheRealLivingWageandwasoneofonlytwoareasthat saw the proportion of such jobs increaseinprevalence7.

ThereisalsoconsiderablevariationwithinWales(seeFigure9).InfiveWelshlocalauthorities–BlaenauGwent,

Pembrokeshire,Gwynedd,AngleseyandConwy–morethanthreeoutoften workers were paid less than the RealLivingWagein2017–whileinCaerphilly,CardiffandNeathPortTalbotaroundafifthofworkerswerelowpaidaccordingtothisdefinition.This patterning of results corresponds tothepatterningofproductivityperformancewith,forexample,GwyneddandAngleseyhavingrelativelylowproductivityalongsideahigherprevalenceoflowpay,andCardiffandNeathPortTalbothavingrelativelyhighproductivitybutalowerprevalenceoflowpay.

Figure 9: Distribution of low pay across Wales, 20178.

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Inresponse,theLabour-controlledWelshGovernmenthassetaboutmakinganumberofchangesdesigned,firstandforemost,tomakeWalesafairworknation,butalsotoboostproductivityand close the gap with the rest of theUK.Withthisinmind,theformerFirstMinistersetuptheFairWorkCommission to make recommendations about how to promote, strengthen and measureprogresstomakingWalesafairnation.ThereportwaspublishedinMay2019andall48ofitsrecommendationswere accepted two months later9.Akeyfeature of these recommendations was thattheWelshGovernmentusesitsinfluenceandcommissioningpowerstopromotepaymentoftheRealLivingWage,knowninWalesastheWelshLivingWage.Theprimaryaimofthisrecommendationistoreducein-workpoverty,whichishigherinWalesthanelsewhere, but also to protect good employers from unfair competition by unscrupulous employers keen to ‘race to thebottom’.Itisalsodesignedtoshockemployersintomakingmoreeffectiveandproductiveuseofavailablelabourand,asaby-product,raiseproductivity.

Strengtheningemployeevoice,bothcollectivelyandindividually,isalsoakeyaspectoftheFairWorkCommission’srecommendations.PlansarenowinplaceforaSocialPartnershipActtobeenactedbytheWelshAssembly.ThiswillgivesocialpartnershipastatutoryfootingsothatthecollectivevoiceofworkersisheardwithintheWelshGovernmentandotherpublicbodies.TheWelshGovernmenthas also committed to promoting

collectivebargainingandtradeunionmembership.AlthoughthesemovesareprimarilyfocusedonmakingWalesafairworknation,theymay,asaby-product,raiseproductivitybycreatingaworkenvironmentwhereworkersarewillingand able to come up with new and innovativeideas10.

However,therearelimitstowhattheWelshGovernmentcandolegislativelywithinthecurrentdevolutionsettlementandthetimehorizontoactisshort,withthenextWelshAssemblyelectionsdueinMay2021.Wecanthereforeexpectto see concerted efforts made by the currentFirstMinisterandhisteaminthecomingmonthstodowhatevertheycantomakeWalesafairwork,andhopefullymoreproductive,nation.

8.Fairwork,lowpayandproductivityinWales.


9. The challenge is urgent but not new: good work, productivity and lessons from TavistockBy Zayn Meghji, RSA

579.Thechallengeisurgentbutnotnew:goodwork,productivityandlessonsfromTavistock.

Introduction

TheGoodWorkagendaisgatheringspeed.InacontextofrapidtechnologicalchangeandtheUK’sproductivitypuzzle,thefocusonhowjobqualityandproductivitycanbealliediscertainlyurgent,butitisnotnew.Infact,inthepost-WWIIperiodtheUKattemptedtoansweranumberofquestionsthatwearestillaskingtoday.

TheTavistockInstitutearchiveschronicleover30yearsofengagementwithwhat might be termed the ‘quality of workinglife’.Thisengagementledtothedevelopmentoftheirsocio-technicalapproach, which considered workplaces ashavingsocialandtechnicalsystemsthatrequirebalancing.Exploringthisarchive,thereisaninescapablesense of the past repeating itself — technologicalupheavalandeconomicandpoliticaluncertainty–raisingthequestionofhowpastperspectivesmightchallenge and enrich current ambitions aroundGoodWork.Whatchallengesdidthemovementface,andhowdiditadapt?Whatdidtheyleavebehind,andwhatshouldbetakenforward?

The socio-technical approach

TheTavistock’slandmarkNationalCoalBoard project illustrates some of the key innovationsofthemovement,aswellasthekeytensions.ThiswastheTavistock’ssecond industrial project beginning in 1950.Despitepromisingnewtechnologies,productivityandmoraleinBritain’smineshad slumped — labour disputes were

commonplace and workers were often absent.Theseproblemsarenotablyfamiliar:thetradingofproductivityagainst job quality and the stunted relationship between technological innovationandproductivity.

TheTavistocksuggestedthatthetechnicalsystem of the mines had been prioritised abovethesocialsystem,aninsightthatformsthatbasisofthesocio-technicalapproach.Labourhadbeeninflexiblydividedtosuitmachinery,damaginginterpersonal, workplace relations and undermining the groups that had developedtocopewiththeacutestressofworkingunderground.Havingseenthat groups that worked with autonomy weremoreproductive,theresearchersidentifiedthedisjuncturebetweenthesocialandtechnicalsystemasthedrivingfactor behind the failed promise of mechanisation.Thesolutionproposedwas to form small, secure coalface working groups, skilled in multiple tasks and organised around tasks that they were abletofullycomplete.

FortheTavistock,thesocio-technicalapproachappearedtoofferapositivealternativetotheoppressivefocusonefficiencythatstemmedfromtheworkofF.W.Taylor,whose1911monographPrinciples of Scientific Management focused on standardising time and workflows.Thehopeofapositivealternativethatmutuallyreinforcesproductivityalongsidequalityworksurvivesintoday’sGoodWorkagenda.However,thehistoryoftheTavistockmovementspeakstothedifficultyofbalancingthesetwoambitions.


Quality and productivity: at odds or against the odds?

TheTavistock’sideaofgivingemployees more autonomy in how they approached the coalface was not wellreceived.Asignificantfactorinthisreluctance was growing pressure on the British coal industry from a rapidly expandingoilindustry,whichprovidedastrongimperativeforautomation,negotiated through painstaking agreementwiththeunion.Thisagreement traded the equality and trust of working groups for better pay for the operators of new machinery, ultimately short-circuitingthereforms.

Thefragilityofinnovationisacommonand troubling theme that underlines the dependence of success on capricious forces.Externalcircumstancesthatare beyond control played a large roleinthefateofthesocio-technicalapproach, with the oil crisis of the 70s,incombinationwithMargaretThatcher’sharshproductivityagenda,enough to dampen the appetite for experimentationinworkplaces.ThedifficultyofsuccessfulinnovationandtheimportanceoftheexternalenvironmentundoubtedlyposeachallengetotheGoodWorkagenda,which is itself framed against a turbulent present-daybackdrop.However,thepost-warmovementfaceddifficultieswellbeforeitseventualdeclineintheUK.

SomeQualityofWorkingLife(QWL)projectshadfollow-upstudiesthathelptoprovideinsightintothelong-

termsuccessoftheirwork.Revisitingone colliery, it transpired that that the working groups had broken down after one year when management decided to movesomememberstoanewcoalface.InweavingshedsinAhmedabad,India, where similar reforms had been introduced, there was found to be little remaining understanding of the thinking behind the working groups and, as a result, earlier patterns of management hadreassertedthemselves.Bothprojects speak further to the frailty of innovation,butinparticularlytothedifficultyofmaintainingsuccesspastinitialexperimentalconditions.

Thisobservationisnotjustthebenefitofhindsight.TheTavistockInstitutewasquick to realise it too, turning to ideas that put the participatory element of their action research approach at their core.ThisconclusioninfluencedthedevelopmentofdozensofindustrialdemocracyexperimentsinNorway.Althoughindustrialdemocracy–asintroduced by the 1977 Bullock Inquiry –wasmetwithresistancefrombothemployersandunionsintheUK,ironically in other parts of the world, industrial democracy is still associated withtheUK.

59

1. Innovation often fails through no fault of its own. TheQWLexperimentstookplacewithinturbulent technological and socio-politicalcontexts.Contextcanoftenhaveamaterialeffect:new technology can fragment anexistingsocialsystemandthethreat of an emerging resource canderailanexperiment.Brexitand the threat of automation are just two destabilising forces that couldundercuttheGoodWorkagenda.Althoughit’struethatdisruptionandinnovationareoften reciprocal, research suggests thatinnovationcapacityreliestosomeextentonjobquality.

2. The importance of quality work must be articulated on its own terms. In practice and under pressure, job quality consistently comes into tension withthebottomline.TheTavistockexperimentsweremostoftenmotivatedbyconcernsoverproductivityandfraughtindustrialrelations.Oncetheincentiveforchangewasremoved,theexperimentsoftenwithered.TheaspirationofGoodWorkneedsabroad-basedconsensusthatestablishes itself as an ambition in andofitself.

3. Clarity is as important as ambition. TheTavistockexperimentswereoftenambiguous:were the researchers on the side of improvingthelotofworkers,oronimprovingmanagerialefficiencyandcontrol?Ofcourse,itisneverquitesoclear-cut,butambiguityisnotagoodstrategyforchange.GoodWorkcanbesubjective,but it is important to be able to demonstrate progress against clear measures, particularly if it is to speaktothepublic.

4. Awareness of legacy. Of32oftheNorwegianindustrialdemocracyexperiments,onlyfiveweremaintainedoverasignificanttimeperiod.WithworkervoiceanimportantaspectoftheGoodWorkagenda,itisimportantto be mindful of the long and complicatedlegacyofexperimentsinthisspace.Theseexperimentsmade progress beyond worker representation on company boards but encountered challenges from whichwecanlearn–forexample,onlyfourofthe32experimentswerestartedontheinitiativeofunions.GoodWorkbuildson,andis legitimised by, a history of trial anderror.Itisimportantthatthemovementisawareofthat.

Key challenges for the Good Work agenda

9.Thechallengeisurgentbutnotnew:goodwork,productivityandlessonsfromTavistock.


What has changed?

As our understanding of emergent technologies such as automation and algorithmshasdeveloped,sotoohasthe importance of understanding what these mean for the ambition of GoodWork.Despitetheprevalenceofnarrativesaroundlosingjobstoautomation,it’smuchmorelikelythatthe natureofworkwillchange–itisestimated that three in ten jobs will require different skills as a result of automation, compared to one in ten thatmightbelost.

Those more inclined to pessimism might see that this raises looming questions about how to maintain job quality in futureworkplaces.Someoftheusualtouchstonesofjobquality–ownershipofthewholetask,multi-skilledwork,creativity–donotfitnaturallywithworkplaces dominated by the technical system.Thereisalreadyatrendtowardsthe monitoring of workplaces, for exampletocollectdatatoassistwithshiftscheduling.Inoppositiontotheobviousconcernsassociatedwithsuchpractices,however,RSA’sworkwithretailexpertssuggeststhatmonitoringcould present an opportunity, with data allowing more informed job design and empoweringindividualsbyofferingbespoke opportunities for career progression.

In the retail sector there is a sense that jobs may actually become morefulfillingascustomerexperiencebecomesakeydifferentiator for brick and mortar shops, andastechnologicallyadvancedshop

floorsnecessitatetechnologicalfluency.RSA’sworkoneconomicinsecurityhasshownthatthereiswidersocietalanxietyoveranexpecteddeteriorationofthequality of work, despite employment rates rising.Thereis,therefore,aclearroleforGoodWork,andjobdesigninparticular,to ensure that the opportunities of technology are realised and the associated expectationofdrudgeryisnot.Thesocio-technical approach, which prioritises the balancing of technical and social systems intheworkplace,ishighlyrelevant–butis there any reason that it should be more successfulnowthaninthepast?

Today the dynamics of the workplace havechanged,therearelessantagonisticindustrial relations, a different management agenda, as well as rising expectationsfromemployeesofagreaterqualityofworkinglife.Theconfluenceofthesechangesmayprovidefertilegroundfor the reorganisation of work around theprinciplesthatdrovetheworkoftheTavistockInstitute.Principlessuchasemployees participating in the design of thejobstheyperform;theautonomyofworkerstodecidehowataskisperformed;opportunities for progression and a senseofpurpose;andworkdesignedforcontinuedlearning.PrinciplesthatspeaktotheGoodWorkagenda.

ThesearchforGoodWorkmustbeopento ideas from around the world, but should equally remember the history oftheUK,notjusttopaylipservicetoa rich heritage, but to ensure that we are fully conscious of the challenges of anextremelyworthyambition:fair and decent work for all.


10. Is it time to turn the future of work on its head?By Josh Hardie, CBI

with support from Jennifer Beckwith and Felicity Burch, CBI


Why adopting productivity-boosting tech depends on good work, rather than being a threat to jobs

Innovationandtheuptakeofproventechnologies are much talked about intheproductivitydebate.Soaremanagement practices and the quality ofpeople’sjobs.Buttoooftenthesethemesarepresentedasan‘either/or’–notaweekgoesbywithoutanotherheadline debating whether robots are lined up to take our jobs or whether a life ofincreasedleisureawaits.Technologyispresentedasanexistentialchallengetocurrentemploymentmodels.

There is no question that the way technology affects and changes people’sjobsneedstobeconsideredandplannedfor.Butworryingaboutrobots threating the future of good work risks looking through the telescope fromthewrongend.Goodworkisa prerequisite for good technology adoption,notinevitablythreatenedbyit.Whetherit’sgame-changingortried-and-testeddigital,engagedemployeeswho are recognised by their managers andhaveopportunitiestodeveloparethefoundationsforinnovation.

The only way we adopt productivity-boosting technology in the first place is by providing good jobs

ExpertscantiethemselvesinknotswhendebatinghowtoimprovetheUK’sproductivity.Butallcanagreethattechnology adoption is one area where wereallyneedtoraiseourgame.Whenitcomestoinvestinginawholerangeoftechnologies,evenstraightforwardthings like accountancy software orwebsites,theUKis,onaverage,average1.

The trouble is it’s easy to implement technology badly, and poor technology implementation leads to poor outcomes

Showmeapersonwhohasn’thadanexperienceofanITimplementationgonewrong.Weallhaveastorytotellofwhenouremployerinvestedin some new kit and it was harder to use, added complications to our dayandfeltdownrightfrustrating.Negativeexperiencesoftechnologyimplementation make companies lesslikelytoinvestagain,discourageemployees from engaging and, crucially,won’tleadtotheproductivityimprovementspromised.

6310.Isittimetoturnthefutureofworkonitshead?

That’s where employee engagement, skills development and effective leadership comes in

Goodjobsaremissioncriticalfortechnologyadoption.Whileopinionsdifferaboutexactlywhatmakesajobgood,there’sbroadagreementthatdeliveringthemcomesdowntothreethings:effectiveleadership,employeeengagement and a commitment to developpeople’sskills.Evensmallimprovementsareassociatedwithsizeableproductivityuplifts–ifabusinessperformingatthelowestlevelsofmanagementcanimprovetojusttheUKaverage,theycanseeamassive19%productivityboost2.Herearethreekeystepsallfirmscantake:

First, leaders need to articulate why they’readoptingnewtechnologiesandrolemodelnewprocesses.Withanystrategythatrequiresbehaviourchange,engagement starts when people understandthe‘why’.Effectiveleadersarticulate why technology adoption, and bringing people along on the journey, shouldbeanorganisationalpriority.Leadersbuildonthiswhentheypracticewhattheypreach:organisationaltransformationsareoverfourtimesmore likely to stick when leaders role model the change the business wants to see3.

Second, to keep the business accountable, leaders should set, and be responsible for, targets towardstechnologyinvestmentandthe people aspects that make it possible.Thatmeanskeepingtrackof

people’ssatisfaction,progressionanddevelopment,andalsoofrecruitmentand retention as a baseline marker of howmotivatedandengagedpeopleareatwork.

Third,tappingintoexternalnetworksisvitalforleaderstobringgoodtechnology and people strategies into theirbusiness.CumbriaCrystal–thelastUKproducerofleadluxurycrystalwitha23-strongteam–doubleditsturnoverandtrebleditsmarginafterseveraltechnologyandpeoplechangeprojects.ItsCEOlargelyattributestheirsuccesstoProductivitythroughPeople,a12-monthleadershipprogrammerunby Be the Business in partnership with BAESystems,EDFEnergy,Leonardo,BabcockInternational,GSK,JohnLewis,RollsRoyceandSiemens.ThisprogrammeenabledtheCEOtolearnfromavariednetworkofbusinessleaderswhocouldchallengeeveryaspect of the business strategy and operations.Asaresult,CumbriaCrystalinvestedinanewecommerceplatformto widen its customer base alongside greaterdevelopmentopportunitiesfortheteam.Thirty-fivepercenthavebeen trained in new processes and ways ofworking,whilsttheorganisation’sRetailManagerhassinceparticipatedinProductivitythroughPeopletohelpensure that customers and the team are getting the best out of its ecommerce investment4.


Technology adoption lives or dies by the extent to which a business engages its people.

Genuineemployeeengagement–ensuring that people are listened to andtheirviewsactedupon–isagamechangerfortechnologyadoption.Inpartitexplainswhybusinesseswiththehighestlevelsofemployeeengagementcanseeprofits22%higherthanthosewith the lowest5.Successfultechnologyadoption can only happen when people understand how their role contributes totheorganisation’sgoals,whytheirengagementmatters;andhaveavoiceonhownewprocessescanbedonebetter.

WhenIntegrityPrintmovedawayfrom printed products as they were increasingly being replaced by digital alternatives,theirworkforcehadtomakeaculturalshift.Thisrequiredtraininganddevelopment,andachangeinworkingpractices.Integrityactivelyengagedemployees in the change through workplace education and industry site visitstolearnbestpractice.Developingdigitalprintproductionhasgiventhebusinesstheconfidencetoengagewithawidercustomeraudience.Anewdigital,data-drivenservicehascontributedtosalesof£6mperannumthatwillgrowtoaminimumof20%ofIntegrity’sturnoverinthenexttwoyears6.

Businesses that can access the digital skills of the future will develop their own people.

Peoplewantopportunitiestogrow–30%ofUKworkerssaythey’reunhappy at work because they lack career progression7.Businessesneedtoprovidesuchopportunitiestoo–firmsthatdeveloptheskillsandstrengthsof their people are able to reduce staff turnoverby,insomecases,asmuchas72%8.Whenitcomestodevelopingand implementing new technology, companies need to ensure they can accessthetechnicalskillstheyneed.

As many companies seek to transform, theseskillsareinshortsupply.Two-thirdsofbusinessesalreadyhaveunfilleddigitalskillsvacanciesand95%expecttheirdigitalskills needs to grow9.Whilesomefirmsare cautiously optimistic that they will be abletohiretherightskills,it’sapressingchallenge that most are predominantly fishinginthesamepoolbyseekingtohireexternallytoaddressskillsneeds.

This will sometimes be the best approach, but you could be missing a trick.Businessesshouldlooktotheirownworkforcestofind‘hiddenskills’(thinkabout the millennial who codes in their sparetime);identifyopportunitiestoretrain people whose transferable skills couldbeusedinnewroles(questionwhetheryourtelesalesteamcouldmovetodigitalsales);orworkwithpartnerstodevelopcomplementaryskills.

Sellafielddidjustthat,introducingaDigitalInnovationSuitethat

65

enables people across the business to collaborate on digital projects andupskill.There’sanoff-networkinteractiveroomwhereawiderangeof employees can consider challenges suchasmanualreporting;trialnewapproaches;anddeveloptheirskillsinautomatedreportingorRoboticProcessAutomation.Digitalsolutionsuppliersprovidetheknowledge,experienceandskillstrainingtodelivertheinitiativeinconjunctionwithSellafield.Thisapproachhasenabledanagile,fail-fast,sprint-basedculturalchangeatSellafield,providingfasterroutetofurther technology adoption10.

It’s clear: good work is critical to tech adoption, but what’s stopping progress?

Deliveringeffectiveleadership,employee engagement and developmentday-in,day-out,iseasiersaidthandone.Itrequiresarelentlessfocus from leaders and managers toensurethatHRpoliciesareputinto practice, progress is measured, benchmarked and accounted for, and toensurethatobjectivesonpeopleareputonaparwithshort-termcommercialtargets at the top and throughout the line.

SomeUKfirmshavesucceeded,butoveralltheUK’seffectivenesslagscompetitors–ifUKbusinessesmatched their performance on people managementtotheirUSpeers,theproductivityoftheUKworkforcewouldjumpbyamassive12%11.

The hard truth is that businesses tend to overestimate how well they lead, engage and develop their people.

CEOsarefarmorelikelythanothermanagerstobelievethattheircompanyhasadoptedeffectivewaystolead,engageanddeveloptheirpeople,often because the business cannot effectivelymeasureandbenchmarktheirperformance.

There’s often no shared view of the nature of the problem or what can be done to solve it amongst leadership teams.

CommunicationbetweentheCEO,ExecutivesandHRManagersisvitaltoensurethatdifferentviewsabouthowthe business is performing on people andwhat’sholdingbackprogressarediscussed.Withoutit,firmsfaceinertiaas different parts of the business cannot pulltowardssharedobjectives.

10.Isittimetoturnthefutureofworkonitshead?


Leaders often underestimate how important their words and actions are in making good work a reality.

CEOsareoverwhelminglylikelytowanttoimprovehowtheirbusinessleads,developsandengagesitspeople.But too often the rest of the business doesnotseeit.Justlikeadoptingnewtechnology, leaders need to be front andcentreincommunicatingandrole-modellingwhypeople’smanagement,engagementanddevelopmentismissioncritical.

Irrespectiveofsizeorsector,allUKfirmsneed to do the groundwork to unlock the benefitsoftechnologyinvestmentandtheirpeople.Whilethereisnoone-sizefitsall,firmsmuststartsomewhere.

Toupyourgameontechnology,firstlookathowyou’releading,engaginganddevelopingyourpeople.Here’swhereyoucouldstart:

1. Set and be accountable for targets on people and regularly communicate progress Ensure that responsibility forpeople’smanagement,engagementanddevelopmentistakenatboard-levelandsharedacross the businesses, not just in HR.Whatgetsmeasuredgetsdone, and regularly communicating progress helps people know the leadershipteamcares.

2. Put people management on a par with commercial targets Managersmakegoodworkarealityday-to-day.Theyshouldbeincentivisedandrewardedforthetime they spend engaging and developingtheirteam,withkeyperformance indicators on people managementgivenequalweighttotheircommercialobjectivesandlinkedtotheirreward.

3. Assess how your business is performing on people Keeptrackofhowdifferentpartsof the organisation perform againstyourpeopletargets.Usingexternalbenchmarkstoseehowyou compare to competitors can helpidentifyhowtoimprove.

Adoptingtechnologyanddeliveringgoodworkisn’tan‘either/or’forbusiness.Implementingnewtechnologydepends on leaders and managers articulatingavisionforchange,engaging people in the process and developingtheskillsoftheirteam.Togetthisright,UKbusinessesneedstolearn from each other on technology investmentandeffectiveleadershipandmanagement. Done well, good jobs enhanced by new technology have the potential to reshape the future of work and turbocharge UK productivity.


11. Productivity through people – supporting best practice in SMEsBy Tony Danker, Be the Business


Productivity–thecumulativeoutputofUKworkersperhour–isthecriticalindicatorofhowcompetitiveweareas a nation and the surest way of deliveringsustainedwagegrowth.Inthedecadeafterthefinancialcrisis,theUK’slabourproductivityhasremainedstubbornlyflatwhilstcompetingeconomieshaveseentheirsreturntogrowth.

ThechallengetoimprovetheUK’scompetitivenessisnotnew;however,themethodsofmosteffectivelyaddressingtheproblemhavechanged.Twenty years ago competition policy, planning and market regulation were seenasthekeyleverstopulltogrowUKproductivity.Twodecadeson,technology is reshaping the traditional structuresoftheeconomy;however,theleadershipoffirmsremainsthemainarbiterofsuccessandfailure.Strongleadersareconfidentandambitiouseveninaneconomicclimateofuncertainty.

Management practices

Arobustevidencebasedemonstratesthe link between management practicesandUKproductivity.ResearchershaveestimatedthataboutaquarteroftheUK’sproductivitygapwiththeUScouldbedowntopoormanagement.DeficienciesinUKmanagementskillshavealsobeenshowntobeakeydriverofinter-firmproductivitygaps.Further,McKinsey&Co.conductedamacroeconomicanalysis of from where future economic

growth will come and found that although45%ofgrowthwillcomefromleadingfirmspushingthefrontier,the majority of growth will be from firmsadoptingexistingbestpractices.

Britain has the potential to build the capabilities of modern economic success by embracing and leading theshifttomanagerialexcellenceandhigh-qualityjobs–unlockingthepotentialoftheexceptionalhumantalentwehavehere.However,for a number of reasons, this is not happening.Inspiteofagrowingbodyofevidencethatbettermanagementpracticesdrivefirm-levelproductivitygains and that implementation costsarerelativelylow,UKfirmsstillspendinsufficienttimeandresourcesinvestinginhumancapitalandleadership.UKSMEsarenotmaximisingtheiropportunitiestogrow.Indeed,ithasprovenasourceoffrustration amongst some policymakers thattheireffortsindevelopinginterventionstosupportSMEsdonotappear to hit the mark and the take up amongstSMEsremainsstubbornlylow.

SMEs

A number of reasons are often cited astowhythisisthecase:thefirmsthatfallunderthebannerof‘SME’aresodiverseastomakeitdifficult,ifnot impossible, to design programmes thatarerelevanttoanymorethanasmallsubsetoftheirnumber.TheinterventionsthemselvescanoftenbeviewedbySMEsasbeingoverly

6911.Productivitythroughpeople–supportingbestpracticeinSMEs

bureaucraticortooslowindeliveringbenefits.Thereisoftenageneralsense that policymakers do not fully understandSMEsortherealitiesofrunningabusiness.

FailuretoconnectwithaSMEtargetaudience is a phenomenon not limited tothepublicsector.Thebusiness-to-businessmarketforSMEservicesandinterventionshasitsownparticularfailingsinthisregard.Thisisprimarilyaround asymmetry of information andaninabilityforSMEownersand managers to identify from the multitudeofproviderswhichserviceswillactuallyprovetobeofmostbenefitfortheircompanies.High-qualityserviceproviderscanoftenbeobscuredbythefloodofofferingsinthemarketplace.Thenatureofthismarketisthatthereisaveryrealdownsideforacompanythatreceivespoor-qualityservice,andsoabusinessownerwilloftenprefernottoprocureanyserviceratherthanriskanegativebusinessimpact.

As a result, on the supply side, the largestprofessionalservicescompaniesand many business schools prefer to focus on blue chip companies that are easier to reach and retain as a client base,therebyreducingtheavailabilityofbestinclassservicestosmallerbusinesses.Onthedemandside,wherefirm-levelreturnstotraininginvestmentare either unknown, uncertain or are outweighed by downside risk, some ingenuity is required to inspire demand amongstSMEs.Inthisscenario,governmentinterventionisneededto

ensureawell-functioningmarketplace.Awell-structuredinterventionfromgovernmentwouldprovideincentives,informationandinvestmenttostimulate the right type of demand amongstSMEsandincentiviseanincrease in the supply of quality managementdevelopmentproviders.

Be the Business

The inception of Be the Business, a government-supportedandindustry-ledinitiative,canbeviewedatleastinpart as a means of addressing these marketfailures.BetheBusiness,aspartofitsremittoimproveUKproductivity,isworkingtodesignanddeliverfocusedinterventionsthatenhanceleadershipcapacityandproductivitywithinUKSMEs.Webelievethiswillserveanumberofpurposes.Bytakingatestand learn approach, we can identify whichinterventionsarethemosteffectiveindrivingfirmproductivity,andbycommunicatingthesebenefitstoSMEswewillincreasedemand.By identifying what constitutes best practiceinthedesignanddeliveryofmanagementdevelopmentprogrammes, and disseminating this information to the marketplace, we also hope to indirectly raise standards amongstsuppliers.

OurfocusonthebuildingofleadershipcapacityamongstSMEsandourevaluationprocesseshavehelpedto surface a number of interesting examplesofwheretheGoodWorkagendaandproductivityincreasesgo


hand-in-hand.Oneofourprogrammes,ProductivitythroughPeople, is a unique SMEeducationprogrammethatfocuses on enhancing management capabilitieswithinfirms.The12-monthprogramme, run in partnership with the universitiesofAston,Bath,Lancasterand Strathclyde, blends practical learning from peers and industry leaderswithclassroomsessions.Participantsengageinacademic-ledmasterclasses;attendsitevisitstosomeoftheUK’smostproductivebusinesses;andreceivemutualsupportandadvicefromaclose-knitgroupofpeers.Interestingly,acorefocusofthe curriculum is around how leaders canengagetheirteamstodeliverproductivitybooststotheirbusiness.

Thisisnotaboutreinventingthewheel,butabouthavingimpact.Managersthathavemadeimprovementstotheircompanyproductivitythroughparticipating in this programme often cite the introduction of, in some regards, fairly standard aspects of management and leadership practice –suchasregularperformancereviewsandtargetsetting–ashavingatransformativeeffectontheirbusiness.Openingaprocessofconsultationordialogue with employees to get their viewsonhowproductivitycouldbeimprovedhasprovedtobeawin-win.Employeesfeelmoreinvolvedandvalued,andmanagersdonotfeelthat they are solely responsible for improvingcompanyproductivity.Thebottomlinebenefitshavealsobeensignificant.

Case studies

In one case, Chris Blade, managing director at Cumbria Crystal, which is thelastproducerofcompletelyhand-blownandhand-cutcrystalintheUK,challengedhisemployeestodelivera1%performanceimprovementtoeachareaofthebusinesseachmonth.This challenge spurred a series of innovativeideasfromemployeesinsuggestingoperationalefficiencies.The success led to his business making savingsof£30,000perannumandwinningcontractswithglobalbrands.Areal-worldproductivitysuccessstory–andonethattheemployeeswereanintegralpartof.

Damini‘Dee’SharmaismanagingdirectoroftheOMGroup,afamily-run construction consultancy based inCoventry.OMGroupwasoneofanumberofSMEsimpactedbythecollapseofCarillionGroupandswift action was needed to help the companyrecover.DeedecidedtoprioritiseproductivityandtookpartintheProductivitythroughPeopleprogramme facilitated by Be the BusinessandAstonBusinessSchool.Deeinvestedinthedevelopmentplansof her employees and upgraded her operations to use cloud technology whencompletingsiteevaluations.Thisreduced journey time for employees and allowed them to focus on the engagingvalue-addedcomponentsoftheirroleratherthanthepaperwork.Fromaproductivityperspectiveitenabledemployeestomake100%moreclientvisitseachweek–ahuge

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gain.Thebuyinandsupportfromheremployees in the adoption of digital technologywasvitalforthesuccessfulexecutionofherbusinessstrategy.

TheevidencecomingbackfromtheProductivitythroughPeopleprogrammesbeingrunwithSMEsisthatpositivelyengagingwithemployees and making them part of thebusinesses’productivityjourneynotonlyenhancesemployees’experienceatworkandjobsatisfaction.Italsoenablesstrongproductivitygrowthandbottomlinegains.Thecasestudiesreferencedaretypicalintheirdeliveryof performance boosts by engaging

employees.WeareconductingrobustevaluationsoftheProductivitythroughPeopleprogrammeswhichweexpecttoconfirmourhypothesisthatengagingemployees leads to better quality work andbetterproductivityoutcomesandthatgoodworkandproductivitygainscanbemutuallyreinforcing.Weexpecttoseeemergingfindingsonmanagementpracticeimprovementsattheleveloftheindividualmanagerinearly2020,withcompanyproductivityincreasesandotherfirm-leveloutcomesexpectedinthemiddleof2021.Welookforwardtobringingthesefindingsto the debate about good work and productivity.

11.Productivitythroughpeople–supportingbestpracticeinSMEs


12. Dead-end relationship? Exploring the link between productivity and workers’ living standardsBy Matt Whittaker, Resolution Foundation

7312.Dead-endrelationship?Exploringthelinkbetweenproductivityandworkers’livingstandards.

Introduction

Acrossanumberofadvancedeconomies,thereisevidenceofa‘decoupling’ofproductivitygrowthandmedian pay growth, raising questions about how the gains from economic growthareshared.However,althoughthereissomeevidenceofdecouplingintheUKsincethe1990s,productivitygrowthdoesstillflowthroughtopaygrowthinthiscountry.Thebadnewsisthattheformerhasbeeninveryshortsupplyoverthelastdecade.

MedianweeklypayintheUKstoodat£439in2018,still1.8%lowerthanthe£447thathadbeenrecordedin2004(afteradjustingforinflation).Thedepthanddurationofthepaysqueezeendured in this period is unprecedented in modern times, and stands in direct contrasttogrowthof20.9%overthepreceding14years.Ofcourse,itowesmuchtothefinancialcrisisof2008,withtheUKenduringaverysharpdropinwagesintheimmediateaftermath.Butthesubsequentpayrecoveryhasbeensluggishtooand,relativetohistoricalnorms, pay growth was already slowing beforethecrisishit.

Oneoft-citedpossibilityisthepresenceofa‘decoupling’betweenproductivitygrowth and median pay growth that isaffectingalladvancedeconomies.That is, the notion that the gains fromeconomicgrowthnolongerflowsmoothly through to the pockets of employees in the middle of the pay distributioninthewaytheydidoverthepost-WWIIdecades.Atfirstglance,

thedecouplingstoryisaneatone:directly linking the slowdown in median pay growth recorded across a range ofadvancedeconomiesoverrecentdecadestothevariouspointsatwhichthe gains from growth can escape the graspofthetypicalemployee.Thatphenomenonissaidtoderivefromthe rise of globalisation, technological progress and diminished worker power –forcesthathavebeenatplayacrossadvancedeconomies.

This story appears to be a good account oftrendsintheUS,forexample,whereacleardecouplingofproductivityandpayemergesinthe1970s.ButthestoryintheUKislessclear.Thereisadecoupling,butitstartslater(inthe1990s)andisofamuchsmallerscale.Andtherearedifferentdriversthanelsewhere.Forexample,afallinglabourshare is a big part of the story in some countries,butnothere.TherestofthisarticleexploresthefactorsthathavedriventhedecouplingstoryintheUK,with different factors at work in different periods.


Understanding the labour share

Whilethelaboursharedid fall in the UKoverthecourseofthe1980sitsubsequently rebounded, marking the UKoutassomethingofaninternationaloutlier.Overall,amodest2.6%reductionintheUK’slaboursharebetween1980and2018compareswithfallsof7.6%intheUS,11.5%inGermany,12.1%inFrance,16.9%inAustraliaand20.5%inJapan.WecandrawtheconclusionthatUKdecouplinghasnotbeentheproductof workers securing a shrinking share of thepie.

Thisexceptionalismisworthdigginginto.ItdoesnotappeartobetheproductofanyshiftintheUK’sindustrialmixorofoutlierperformancein any one sector, but rather the presenceofeconomy-widefactors.Atighteninglabourmarket–withthe16-64ageemploymentraterisingfrom69.9%in1996to72.7%in2002–islikelytohaveplayedakeyrole,bystrengthening the bargaining power of workersinthisperiod.TheintroductionanddevelopmentoftheNationalMinimumWageprobablyalsoplayedapart, directing an increasing share of the incomepietoworkers.

It is worth noting that the share of overalllabourcompensationdistributedaspay,relativetotheshareaccountedbyemployerNationalInsuranceContributions and the share taken up by employer pension contributions, hasdeclinedovertime–inparticular,intheperiodbetween1990and2008,accountingforone-thirdofthe24percentage point decoupling of median payfromproductivity.Assuch,althoughtheUK’slabourshareofincomehasbucked the international trend, the wage share of income trend has more closely matchedthenorm.

Devaluation effects

Thedivergencewehaveseenbetweentheconsumerandproducerdeflatorhasalsobeenacontributingfactor.Theproducerdeflatorisusedtoinflation-adjustnationaloutput(capturingthechangeinpricesofalldomestically-produced goods, including those thataresoldandconsumedabroad);whiletheconsumerdeflatorisusedtoinflation-adjustpay(capturingthechange in prices paid by households when doing their weekly shop, including thosegoodsandservicesthatareimportedfromelsewhere).

Thelargesterlingdevaluationthatfollowedthefinancialcrisis(associatedwiththeUK’sfinancialsectorreliance),and the more modest one that followed theEUreferendum,servedtolifttheconsumerdeflatorsignificantlyabovetheproducerdeflator.Thisproducedaterms of trade drag for workers in the

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UKthathascontributedtothewideningofthewedgebetweenproductivityandpay.Indeed,that’sreallytheonly sourceofdecouplinginthelastdecade.Itisworthnotingthatoverthelongertermthisdeflatoreffecthaspulledindifferent directions, actually pushing against decoupling when we take the 1980-2018periodasawhole.Itisnotastructuralinevitability.

The complex story of wage inequality

Byfarthebiggestdriveroflonger termUKdecouplinghasinsteadbeenthe change in the distribution of pay observedovertheperiod.Thedifferenceobservedinmeanandmedianpaytrendsaccountsfor95%oftheoverall24-percentagepointwedgerecordedbetween1980and2018.Butthisisnotastoryofever-wideningwageinequality.GrowthacrosstheearningsdistributionoverthisperiodhasactuallybeenU-shaped:payhasincreasedthemost at the top, but minimum wage policieshavealsosupportedsolidgrowthatthebottom–itiswagesinthesecondquartilethathavegrowntheleast.

Restarting the productivity growth engine

Whatcanwedrawfromallofthis?ItishardtolookattheUKexperienceandconclude that the feed through from productivitygrowthtopaygrowthisfundamentally‘broken’.Thereisgoodreason for being concerned about the link between median pay growth andproductivitygrowthintheUK–just not necessarily for the reasons oftenassumed.Itisthecollapseofproductivitygrowthratherthananybreakdown in the relationship between wagesandproductivitythatexplainsthepaysqueezeofthelastdecade.

Therefore,productivitygrowthremainscentrally important to pay prospects intheUK.Thetermsoftradedragassociatedwiththedivergenceofproducerandconsumerdeflatorshascertainly played a key role in holding backreal-termswagegrowthsincethefinancialcrisis,buttheimpactisslightrelativetotheroleplayedbytheslowdowninproductivitygrowthitself.

Ofcourse,disentanglingproductivityanddecouplingiscomplex.Thepost-crisissterlingdevaluationwasitselfareflectionoflowerlong-runproductivitygrowthexpectationsintheUK.Thiscaused pay growth to more quickly adjust to the new reality than output growthdid(resultingintheobserveddecoupling).Wereproductivitygrowthtohavebeenstrongerthanitwasinthepost-crisisdecadethenwemightnothaverecordedthesameremarkable growth in employment

12.Dead-endrelationship?Exploringthelinkbetweenproductivityandworkers’livingstandards.


(indeed,wemightwellarguethatthepost-crisispaymoderationassociatedwith sterling depreciation directly fed through into higher employment and lowerproductivitygrowth).Thereisnoguaranteethatafaster-growingeconomy would result in the same balance between labour and capital andbetweenwagesandnon-wagecompensationforexample.

Thatsaid,theconclusionisclear:namely that restarting wage growth and supportinghouseholdlivingstandardsrestsaboveallelseonrestoringproductivitygrowthtoitsformerlevels(orviceversa,potentially).Allboatscan stillbelifted,butforthistohappenit’simperativethatthetidestartsrisingagain.

Inpartthatmeansreversingthebusinessinvestmentpicture,withrecentweaknessexplainingaroundtwo-fifthsoftheoverallunder-performanceofproductivitygrowthinthepost-crisisdecade.Movingbeyondtoday’suncertain political and economic backdropwouldcertainlyhelp(businessinvestmenthasfalleninfiveofthelastsixquarters,withfirmsunderstandablydelaying decisions until such time as the Brexitoutlookclears).However,theneedtoimprovethewayinwhichfirmsadoptinnovativetechnologiesandworkingpractices is probably more structural innature.Onthatfront,it’simportantthatanyfocusonboostingproductivityrecognisestheextenttowhichtheworldofworkischanging.

Therobotshavenotarrivedtotakeourjobsyet–indeed,oureconomycoulddowithafewmoreofthem–butnewtechnologies will alter the way we work overthecomingyears.Thatwillbringdisruption that, in the short term at least,willdisadvantagesomeworkersmorethanothers.Anditwillrequireusto place a growing emphasis on worker mobility(intermsofjobsandintermsoflocation),skills(withagrowingneedforretrainingoptionsoverthelifecourse),confidence(supportingrisktakingandopportunism)andpower(harnessingnew technology to bring workers togetherininnovativenewways).Thatwon’thappenbyaccident,butithasthepotentialtobringsignificantreward.

Giventhegoodnewsabouttherelativeongoing strength of the relationship betweenproductivitygrowthandpayintheUK,thehopemustbethatthe prioritisation of a restoration of improvementsinoutputperhour–viaastrategy that places workers at its heart –hasthepowertodeliverdirectandobviousbenefitstoallinsociety.

Adapted from an essay published by the Resolution Foundation, January 2020. For the full essay, including all data tables and sources, please visit www.resolutionfoundation.org


13. Can improving productivity help our in-work poverty problem?By Louise Woodruff, Joseph Rowntree Foundation


It’snotrightthatmanyworkersintheUKfindthemselveslockedinpoverty.Business practices are part of the problem, but they can also be part of thesolutiontoin-workpovertyandloosening its grip so that workers can builddecentlivesforthemselvesandtheirfamilies.

The UK’s in-work poverty problem

Sue1isacareassistantprovidingdomiciliary care to older people in her area in a coastal town in the South of England.SheworksforanagencyontheNationalLivingWage,receiveshershiftpatterns week to week and often works unpaid to spend more time with her vulnerableclients.Sheisasinglemumof two primary school children and often strugglestopayherrentontime.

Johnworksonazero-hourscontract,drivingallovertheNorthWestdeliveringparcelsforamajorretailer–he’softentired and has an unpredictable income, whichmakesitdifficulttobudgetandtokeepontopofhisclaimsforUniversalCredit.Hehadtouseafoodbankinthepast and feels ashamed that he could notfeedhisfamilyinthoseweeks.

SonialivesinsocialhousinginLondon.Sheisacleanerwithtwopre-schoolchildren.Sheoftenworkssplitshiftstomanage childcare with her partner and regularly falls asleep on the bus on the wayhometoherouterLondonborough.

Thisweek,Sue,SoniaandJohnareamongstthe4millionpeopleheadingouttoworkintheUK’sprivatesectorfirmsandinpublicsectorroleswhilstcaughtinthegripofpoverty.Theproportion of working families that areinpovertyhasrisenoverthelast20years–anunacceptablesituation, and a trend that now sees the majority of people of working age experiencingpovertycomingfromaworkinghousehold.Seventypercentofchildren2pulledintopovertycomefromhouseholds where at least one adult works.FoodbankuseintheTrussellTrustNetworkhasrisenby73%overfiveyears3andaroundoneinsixfoodbankusers are in work4.

It’snotrightthatsomanyworkingfamiliesarelockedinpoverty.Problems5 with jobs, housing and social security benefitsmeanmanyUKworkersarestruggling on incomes that just do not covertheirlivingcosts,andseverelyrestricttheiroptionsandopportunities.Reducinghousingcostsandincreasingsupportviasocialsecuritybenefitsplayakeyroleinaddressingin-workpovertyatahouseholdlevelbutweshouldnotletthelabourmarketoffthehook:theUKneedsmorebetterpaidjobswithgood conditions, progression, genuine flexibilityandmorehourstohelploosenpoverty’sgrip.

7913.Canimprovingproductivityhelpourin-workpovertyproblem?

The characteristics of low-wage work

Althoughthereareemployeesinpovertyin all sectors, these households are concentratedinthelargelow-wagesectors.Howthesesectorsoftheso-calledeverydayeconomybehave–theirbusinessmodels,sustainabilityandproductivitylevels–reallymattersfor the millions of workers on low pay andinpoverty.Retailandhospitalityare especially important6.Theyarelarge employment sectors with a high incidenceoflowpay.Alittleunderhalfofworkersinretail(46%)andjustshortofthree-fifths(59%)ofworkersinhospitalityareonlowpay.Aroundathirdofworkersinpovertyworkinthesetwo sectors alone7.Socialcareandthefacilities management sector also face similarchallenges.

Despitetheintroductionandrisingvalueoftheminimumwage,low-incomefamilieshaveseenslowergrowthinearningsthantheaveragefamilyformuchofthelast20years8.Atleastsome of this has happened because peoplecan’tfindjobsthatprovidethemwith as many hours of work as they wouldlike.Afifthoflow-paidmenandwomen say they would like to work more hoursthantheycanfind,aroundthreetimestheratefornon-low-paidworkers9.

UKfirmsinvestless10 in their lower paidstaffthanthoseinhigher-paidroles and this training can often focus on basic induction tasks rather than being continuous and linked to pay progression.Someworkersinlow-paid

sectorscomplainabouthavingtodothe same basic training again and again everytimetheychangeemployerandIwonderhowproductivethatcanbe:eachdayacrosstheUKemployersarespending money on training employees inskillstheyalreadyhavebuthappenedtogainatanotheremployer.Whatifthatmoneywasinvestedmorewiselyindevelopingnewskillsorretrainingforadigitalworkingenvironment;orifwe made skills recognition much more portable between employers11?Itisalsowelldocumentedthatmanylow-paidemployees remain stuck on low pay andflatterstructuresinmanyfirmsmake pay progression challenging12.For many employees, lack of genuine flexibilityinbetterpaidrolesjustmakesjugglingcaringandworktoodifficult;a problem that particularly affects the largenumberoflow-paidmothersintheworkforce13.

Thegovernmenthasacknowledgedtheproblemofone-sideflexibility14 where risk is shifted to the employee who canhaveshiftscancelledorchangedattheirownexpense.Theseworkingpractices are particularly damaging to familiesonlowincomes:makingitverydifficulttoplanaheadandbeingleftout of pocket for childcare and transport costs.Businessesstilloperatingthesebusiness models are clearly out of step withpublicopinion.RecentJRFpolling15 oflow-incomevotershasshownthat79%voterssupportedpoliciestoguarantee hours at work each week, 62%supportedmoretimeflexibilityforworkersand49%supportedmoreadvancenoticeofhours.


There are of course, many great employers inthetraditionallylow-wagesectors,such as the employers who pay the highervoluntaryLivingWage16 or sign up forLivingHours17;whoinvestheavilyintraining and manage their businesses well togivegoodnoticeonshiftsandhours;orwhoaredevelopingbetterprogressionroutesforpart-timeemployees.BusinessintheCommunityhasdevelopedatoolkit–GoodWorkforAll–andhassomegreatcase studies18.TheworkoftheGoodJobsInstitute19intheUSshowshowbusinessesinlow-marginsectorscanoperateinawaythatcanstilldelivergoodjobs.Sowhatneeds to happen for more employers to adoptthesebusinesspractices?

Will raising productivity help?

Low-wagesectorsareaconcernnotjustforpovertybutalsoforoureconomy.German,FrenchandDutchworkersinthese sectors produce more in four days thanBritishworkersdoinfive.TheUK’sproductivitygapwithitscompetitorsinlow-wagesectorsisnotduetoalackofcapitalinvestmentorworkers’formalskillsbuthowwellfirmsuseworkersinthesesectors.Butraisingproductivityinlow-wagesectorsandinlow-productivityfirmsisnotguaranteedtodriveuppayinthesesectorsandfirms.Duringthepost-2008recoverya10%increaseinfirmproductivityisestimatedtohaveincreasedwagesbyjust0.05%20.Recentresearchonpaysettingshowsthatfirmsaremoreconcernedbysectornorms;attractingandretaininglabourandtheNationalLivingWageratherthanlinkingpaytodrivingorrespondingtoproductivitygains21.

Thediscussiononimprovingproductivityand job quality sometimes feels disconnectedfromthereallivesofpeopleonlowincomes.Beingtreatedwellatwork,paidaRealLivingWage,givenopportunitiestoprogressandtowork the right number of hours should be fundamental aspects of decency at work and should not be seen as a specialprizefordeliveringproductivitygains.However,evenifourprimaryfocusisraisingproductivitythenwestillneedtofocusonraisingjobquality.Weneedtomakesurethatinterventionswedesigntopushupproductivitywillhelp create an economy that works foreveryone,includinglow-incomehouseholds.Toraiseproductivityanddriveuppay,productivitystrategiesforlow-wagesectorssuchasretailandhospitality should focus on increasing theproportionofworkersinon-the-jobtraining;improvingmanagementpractices;increasingthepercentageofworkersusingICT;andreducingtheshare of temporary workers22.

Can a business or sector really make thoseproductivitygainswithoutthinkingaboutthelivesoftheiremployees–whoare,afterall,keystakeholders?Povertyisestimatedtocostthepublicpursearound£78billion23 a year and all businesses, like other taxpayers,havetopaypartofthiscost.Businesses should also be concerned abouttheimpactthatpovertyhasonindividualemployeeperformance24.Howcanyougivethebestcustomerserviceor make key performance indicators orsupportvulnerableclientsbrilliantlyif you are worrying about money or

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whether you will eat just toast that night to make sure your children get a decent meal?Employersneedtostartclosetohomeforsolutions–helpingtoaddresstheissuesofpovertyandunfulfilledpotential in their workforce and/or in theirsupplychain.

Recentresearch25 from Strathclyde BusinessSchoolforJRFhasexploredtheways that businesses interact with the issueofin-workpoverty.Thesefindings,together with concurrent work from theSocialMarketFoundation26 on pay progression and the role of corporate decision-making,meanwehaveamuchbetterunderstandingofthekeyleversforinfluencingemployerbehaviourchange.Goodworkstrategiesshouldbebuiltintobusinessadviceservicesandhelpstart-ups‘designin’goodworkpracticefromtheirinception.Wecanalsoharnessinvestorpressuretoencourage transparency of company reporting on pay progression and training.

Arguably, the public debate on low pay andworkingconditionsmighthaveby-passedtheeconomiccase-makingonproductivitysomewhat.PoliticiansacrossdifferentUKpartiesarerespondingdirectlytotheneedsoflow-incomeworking households, particularly on the minimum wage and on other aspects of goodwork.TheleveloftheNationalLivingWagebecameanelectoralissuewithboththe two main political parties proposing considerable increases27.

Ultimatelythough,designingbusinesspractice and policy solutions to addressinggoodworkandproductivitymustconnectwiththeeverydaylivesof people working on a low income andwhatmatterstothemmost.That’swhyatJRFwearealsoworkingalongsidepeoplewithexperienceofin-work28povertytoco-designsolutionstoimprovingworkforlow-incomeemployees.TheUKurgentlyneedstosolvetheproblemsoflaggingproductivityandin-workpoverty.Thereisarealopportunitytodriveimprovementsinbothifgoodjobsbecomethenorm.

13.Canimprovingproductivityhelpourin-workpovertyproblem?


14. Can prioritising worker health help close the North’s productivity gap?By Anna Round, Institute for Public Policy Research North

8314.CanprioritisingworkerhealthhelpclosetheNorth’sproductivitygap?

The idea that healthy workers are more productiveholdsanintuitiveappealforanyone who has struggled through a day’swork,paidorunpaid,withaheavycoldoraheadache.Large-scalestudiesconfirmthat:

… the determinants of a country’s economic

performance include the health status of its population. That is, there is a two-way relationship

between health status and socioeconomic factors. People

in good health are more productive …1

YetintheproliferatingpolicydiscussionofhowtoaddresstheUK’s‘productivityproblem’,thehealthofworkersisarelativelyrecenttheme.Developmentssuchasthe2018Good Work Plan2 signal a new and welcome policy approach, recognising the role of health as a dimensionofworkquality.

The idea that we should evaluate economies in terms of their human impactsisincreasinglypopular.Conventionalproductionindicators,notablyGDP,provideanimportantbut narrow picture, failing to capture how an economy is experienced by thepeoplewholiveinit3.Proposalsforalternativesthatdefinesuccessbyincreases in wellbeing and sustainability as well as growth are gaining traction4, forexamplein2019NewZealand’sfirstWellbeing Budget was published5.

Willthisapproachtoeconomicoutputsbe accompanied by a greater focus on the social inputs to prosperity, including health?Thelinkbetweeneconomicdeprivationandpoorhealthiswell-established6, but interest is growing in the‘viciouscircle’bywhichpoorhealthin turn makes it harder to create wealth inaplace.Arecentstudy7 found rates ofproductivitybelowtheUKaverageintheNorthofEnglandaredueinparttopoorerlevelsofhealth.Unemploymentand limited employment prospects associatedwithill-healthandlong-termconditionsexplainaround30%oftheproductivitygapbetweentheNorthandtherestofEngland.Investmenttoreducethisdisparitycouldgenerateover£13billioningrossvalueadded8.

This is especially important for areas suchastheNorthEast,wherepooroutcomes on a range of health indicators are closely related to historicallyhighlevelsofdeprivationandthe impacts of economic restructuring9.LifeexpectancyatbirthforbothsexesisbelowtheEnglishaverage.Butcrucially,averagehealthy lifeexpectancyatbirthisthepoorestintheUK–ataround60.4forwomenand59.5formen10, andseveralyearslowerthantheStatePensionAge11.Aswellascontributingtoeconomicinactivity12, this trend almost certainly means that some people who stay in work, for economic or personal reasons,willperformlesseffectivelybecauseofpoorhealth.

Theargumentforinvestmentinhealthas an economic asset as well as a social oneisclear:


… we need to reposition health as one of the primary assets of our nation, contributing to both the economy and happiness13.

However,thenatureofthatinvestment–whoshouldmakeit,whereitshouldbetargetedandhowitsbenefitscanbemeasured–iscomplex.Inthefirstplace,economic gains are only one of a host of reasonsforinvestinginhealthservicesandthepublichealthmeasures–the‘compellingcase’forinterventionalsoincludestheintrinsicvalueofhealth,the role of health in social justice and potentialsavingsinhealthservicecosts14.

Inaddition,theproductivityimpactsofhealthvarybycondition,severityandcontext,aswellasbytypeofjobandsector.Andwhileabsenteeismandwithdrawal from the labour market are fairly straightforward categories, it is much harder to identify the effect on productivityof‘presenteeism’orworkingwhilstunwell–althoughthismaybesubstantial15.Betterevidenceontheseissues is important, but they need to be treatedwithcare.Recentyearshaveseengreat gains in enabling work for people withlong-termhealthconditionsandinending the stigma associated with certain illnesses.Instressingtheimportanceofworker health in generalforproductivity,wemustmakesurethatindividualemployees with health issues are not seen asapotentialcosttoemployers.

The way we talk about health is often atoddswithexpertknowledgeofwhatworkstoimprove,createand

maintain it16.Informalunderstandingstend to assume that health is shaped primarilybytheindividualexerciseofresponsibility, discipline and will, with genetic factors also playing a major role17.Expertsargue,however,thathealthcreationiscomplex,arisingthrough multiple interactions with places,experiencesandopportunities–includingworkitself.Individualactionsandchoicestoimprovehealthtakeplaceinsocialandeconomiccontexts,andareenabledorinhibitedbythese.

Manyofthosecontextscanbeinfluencedprofoundlybygovernmentpolicy.Stateinvestmentthatimprovesthe health and wellbeing of populations willalsoimprovetheiropportunitiesforeconomicparticipation(subject,inevitably,tothestructuresofthelocaleconomyandlabourmarket).Asecondkeycontextistheworkplaceitself;after all, this is where working adults spendalargeproportionoftheirtime.Black18identifiedastrongrelationshipbetweenfirm-levelhealthinterventionsand workplace practices, and economic outcomesincludingproductivity.Yetemployerapproachestoinvestmentinthehealthoftheirworkersvariesconsiderably.Multipleexamplesofgoodpractice19existalongsideuncertaintyabout how to create, prioritise and measure employee wellbeing20.

The changing nature of work, with new patterns of employment and relationships between employers and employees,mayhaveconsequencesforhealthatworkandfortheeffectivenessofemployerinvestment.Whilemore

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employersrecognisethevalue,socialandeconomic,ofcomprehensivechanges, work insecurity is an increasing concern.Notonlycouldprecariousworkmake engagement with workplace health more challenging, it may itself havenegativeimpactsforhealth21 and, inturn,forproductivity.

This could be a particular issue for certain‘low-wage’sectors,aswellasforareasandindustriesthathaveseenarelativelylargeincreaseininsecurework.Theproportionofworkersona‘zero-hourscontract’fellintheNorthEastbetweenthesecondquarterof2017andthesameperiodin201822 but there isevidencethatthisregionhasseenincreasesabovetheUKaverageinotherformsofnon-permanentwork,includingtemporaryjobs,agencyworkandself-employment23.

As well as supporting wider calls for investmentinhealthcreationandpreventionofillness,policyresponsestoimprovinghealthforproductivityshouldfocusonimprovinginformationand resources for key stakeholders who holdthepowerstospearheadchange.

Centralandlocalgovernmentarethemselvesmajoremployersandhavethe‘hardandsoft’powerstomanagethe integration needed to embed healthindifferentcontexts,includingtheworkplace.Nationalexamplesofgood practice, particularly in relation to mentalhealth,alreadyexist24.

ManyLocalandCombinedAuthoritieshaveembracedtheGoodWorkagendausingexistingpowersandtheopportunitiesofdevolutiontoimprovework quality and bring together partners whocanbothdrivethisagendaandbenefitfromit25.IntheNorthEast,theGoodWorkPledgebythenewNorthof Tyne Combined Authority includes a recognition that good quality work supportsbothproductivityandhealth26.

Onceembedded,evaluatedandwidelydiscussed,suchinitiativescanhelptomake the case for the ‘robust model for measuringandreportingonthebenefitsofemployerinvestmentsinhealthandwellbeing’envisagedbyBlack27.Intimethey will help to reframe health at work asaprojectofco-creationbyemployers,employeesandgovernment.

14.CanprioritisingworkerhealthhelpclosetheNorth’sproductivitygap?


15. What we know – and what we don’t – about flexible working and productivityBy Emma Stewart, Timewise

8715.Whatweknow–andwhatwedon’t–aboutflexibleworkingandproductivity.

Introduction

In the 15 years since the Timewise team beganfocusingonflexibleworking,there’sbeenahugeevolutioninbothitsperceivedvalueandtheattentionithasreceived.Onceahushed-upperkfora small number of maternity returners, withfewchampions,flexibleworkingis now a core ingredient of workplace strategy.Indeed,itwasacentralpillaroftherecommendationsofMatthewTaylor’slandmarkreviewofmodernworking practices1.

Thereviewspearheadedagrowingunderstanding into the social and economicvalueofGoodWork;thatis,workthatbenefitsindividualsandsocietyasmuchasbusinesses.Taylorwasclearabouttherolethatflexibleworking has to play in making work good:

‘The Review believes that genuine flexibility, whereby

individuals and employers are able to agree terms and

conditions that suit them both … is both the key strength of the UK labour market,

and also a core component of fair and decent work.

As a society, we should be bolder in designing flexible

jobs that allow people to remain and progress in

the labour market as their circumstances change.’

Today,flexibleworkingisastrategicgoalforforward-lookingorganisationsanda legitimate aspiration for employees (andnotjustthosewithchildren).Whenyou look at the business case2 and the impactofworkingflexiblyonemployeewellbeing and engagement3,it’seasytoseewhy.

The positive impact of two-way flexibility

Genuine,two-wayflexibleworking,whichdeliversforemployersandemployees alike, has been shown to boost talent attraction4 and retention5.Ithelpsdriveinclusionanddiversity6, and supports the progression to senior levelofkeygroups,includingwomen.Havinglesspeopleintheofficeatthesametimecanalsoleadtosavingsonofficespaceandotherbusinessoverheads.

Flexibleworkingalsodeliversbetterwork-lifebalance7,withtheknock-on effect of supporting mental and physicalhealthandimprovingwellbeing.Governmentfigures8haveshownthatin2017–2018,57%ofallsickdayswereduetowork-relatedstress,anxietyordepression;tacklingthesethroughbetterflexibleworkingisclearlygoodforeveryoneinvolved.


The link between flexible working and productivity

Sowhataboutproductivity?Doestheabilitytoworkflexiblymakeyoumoreproductive?

Therearesomefigurestosuggestthatthisisthecase.A2014surveybyBT9 foundthattheproductivityofflexibleworkersincreasedby30%.Similarly,aYouGov10surveyfrom2015suggestedthat30%ofofficeworkersfelttheirproductivityincreasedwhentheyworked remotely, and in a study of flexibleworkersundertakenbyCranfieldUniversity11,over90%ofmanagerssaid the quantity and quality of work improvedorstayedthesame.

Additionally, it is simple common sense toassumethatifyou’reworkingfewerdays a week, you are likely to be more engagedonthosedays;thatifyourjobfitswellwithyourlife,you’relikelytobringmoreenergytoit;thatworkingfrom home, with fewer interruptions, can increaseyouroutput;andthatifyouhangontoexperiencedteammembers,whoknowwhatthey’redoing,yourteamasawholewilldelivermore,betterandmoreefficiently.

Rising interest in the four-day working week

Theseassumptionshavecertainlycontributed to increased interest in theconceptofthefour-dayworkingweek.Inthelastyeartherehasbeena swathe of articles about companies whohaveswitchedtheiremployeesonto this pattern, without any dip in productivityorlossofpay.Akeyearlyexampleofthis,PerpetualGuardianinNewZealand12, ran a pilot that they say revealeda20%increaseinproductivity.AnumberofcompaniesintheUKhavealso followed suit13.

Why this solution is more complex than it seems

Doesthismeanwecanalljustmovetoafour-dayweekforthesamemoneyandwatchourproductivitysoar?Ifonlyitwerethateasy.

AsI’veexplainedindetailelsewhere14, introducingafour-dayworkingweekisn’tjustascheduletweak.Mostoftheexampleswe’rehearingaboutare coming from one end of the employmentmarket–office-basedroleswithinknowledgeandcreativeindustries,suchasPR.Infrontlineandshift-basedsectorsitisfarmorecomplicatedtointroduce–oronlypossibletodosoataprohibitivelyhighcosttothebusiness.Andwhentalentisn’tseenasahighcommoditythebusinesscaseforinvestmentishardtomake.

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Furthermore,inashift-basedenvironment,theconceptofafour-dayworkingweekdoesnotreallyfly,asemployees are not working a standard five-dayweek.Whatmostofthemreallywant is more control and predictability overwhenandhowmuchtheywork,toachievewhatweatTimewiseterm‘shift-lifebalance’.Withoverfivemillionpeopleworkinginpermanentshift-basedroles,itisimperativethatweexplorehowwecanachievethisforthebenefitofworkersandtheeconomy.

Indeed,asLordSkidelskynotedinhisLabourParty-commissionedreport15 exploringthefeasibilityoflegislationto limit hours of work ‘Capping working hours nationwide … is not realistic or evendesirable,becauseanycapneedsto be adapted to the needs of different sectors’.

Soifthefour-dayweekisn’ttheanswertoincreasingproductivityonalargescale,whatis?Iwouldarguethatthereare two big steps we need to take to tackle this issue in a robust, sustainable way:

1. More investment into designing jobs that deliver two-way flexibility

Ifweagreeinprinciplethattwo-wayflexibilitysupportsproductivity,weneedtomakeitmorewidespread.Thatinvolvesunderstandingwhatkindsofflexibilityaremostappropriate for each role or sector, changing workplace cultures to

support different working patterns and increasing management capabilitytodeliverthem.

Aswiththefour-dayworkingweek, this is more straightforward inoffice-basedknowledgeandcreativesectorsthanitisinshiftorservice-basedonesinsectorssuch as health and social care, retail, hospitality, construction and teaching.Theseareindustriesthatfacecomplexoperationalaswellas cultural constraints to making two-wayflexibilitywork.Buttheyare industries that employ millions offrontlineworkerswhoserviceoureconomy.Someofwhomneedmorecontrolandsecurityovertheirworking patterns, and others more opportunities to progress into better paidpart-timeworktofitwithcaringorhealthreasons.

Weneedtotestandcatalysenewapproachestodesigningtwo-wayflexibilityinthesesectors,particularly as many are struggling withskillsshortages.Butwefaceboth a capability and a capacity gap in understanding how to redesign work,ratherthaninvestinanotherskills training programme as a way tomaximiseperformance.Todrivechangewewillneedgovernment-levelinvestment.Weinvestintechnicalinnovationtosupporteconomicgrowthinthiscountry;it’stimeweinvestedinjobdesigninnovationtoo.

15.Whatweknow–andwhatwedon’t–aboutflexibleworkingandproductivity.


2. Proper research into the impact of flexible working on productivity

Oncewehavemoremodelsofflexibleworkinginplace,acrossawider range of different sectors and role types, we will be in a far better position to research the linkbetweenflexibleworkingandproductivity.ThefiguresIquotedearlierarenotsufficientlyup-to-dateorwide-ranging;weneedtodomoretoprovethelink,particularlyatasectorallevel.

Bydoingso,we’llcreateavirtuouscircle in which more organisations arepreparedtomovetoamoreflexibleapproach,whichwillboosttheirproductivity,whichwillinturnencourageotherstofollowtheirlead.

We’re tackling flexible working R&D – but we need more support

AtTimewise,we’realreadyonthisjourney.Wehaveledanumberofresearchprojectsexploringinnovativeflexibleoptionsincomplexsectorssuchas social care16, nursing17, teaching18 and retail19.Rightnow,we’repilotingflexibleworking in the construction industry and investigatingtherolethatflexibilitycanplay in supporting older workers, through theworkofourInnovationUnit.

Butwearejustoneorganisation;andalthough we are supported in this work byanumberoflike-mindedpartners,there’salimittowhatwecanachieve.Toreallydrivechangeatscale,weneed more social partnerships between business sector bodies and agents for change,backedbygovernmentandindustryinvestment.

Ifwereallywanttotakeproductivitytothenextlevel,whilstdeliveringahappier,healthierworkforce,that’sthefirststep–andweneedtostartnow.


16. Finding our edge: engaging employers in the movement to make work betterBy Paul Devoy, Investors in People


Introduction

Whenyou’refacedwithapuzzle,itisgoodtohaveaclearstrategy.Somethingfeasibleandpractical.Likefindingtheedgepieces,creatingaclearstructure,andthenfillinginthegapstobuildupabiggerpicture.

Improvingproductivityisapuzzlethat’sbeen around for quite some time in theUK.Inthisrespect,we’velostouredge.We’relaggingbehindotherlargeeconomies and, if our current rates of improvementcontinue,we’llbearound30%lessproductiveasindividualsthanpeopleintheUSandGermanyby2025.

The backdrop

InvestorsinPeoplehasbeenaroundforquitesometime.We’veseenmanyUKinitiativescomeandgo,well-meaninginterventionsthathavehadvaryingdegrees of success in terms of boosting workingconditionsandproductivity.We’vealsolearnedandseenfirst-handwhatgenuinelymakesadifference.

Lookatemployeeengagementscoresbywayofaclassicexample–organisations in the highest scoring quartilehavebeenshowntobe22%moreprofitableonaveragethanthosein the bottom quartile andhave21%higherproductivity1.

There are many factors at play, and so it is not always possible to isolate precisely the impact of good work on organisationalperformance.More

analysiswillhelptobuildtheevidencebase, yet in the meantime, there is a huge body of research and data that confirmstheevidentlinkbetweenthetwo.

Intuitively,weknowandagreethatwhen we treat people well, they respond inkind.Conversely,whenwetreatthembadly,theywon’tgotheextramile.Few,ifanywoulddisputethat.Yetinanageof job uncertainty, growing competition andrisingworkplacestressandanxiety,one in three workers report being unhappyatwork.Some45%ofpeoplewerelookingtomovejobsin2019,andofthetopthreereasonsgivenformovingon,notfeelingvaluedandwork-relatedstresseachscored16%.Betterpay was also an issue, yet interestingly a‘goodwork-lifebalance’anda‘goodteam’scoredhigherthanpayasthingsthat people liked most about their work (seeFigure10)2.

As well as being the right thing to do, providinggoodworkisanissueforthebottomlineaswell.Theaveragecostof replacing a skilled worker is typically 150%oftheirsalary,andfirmswithengaged employees enjoy around 40%lessturnoverofstaff–anotherdimensionoftheproductivitypuzzle.

So we should be bold and push the agenda forward, making a powerful caseforgood,fairwork–becauseasbusinessesandindividuals,andasacountry,wecannotaffordnotto.

9316.Findingouredge:engagingemployersinthemovementtomakeworkbetter.

The campaign to create a mindset

There is a heads and hearts argument tobemadenow.Weneedanengagingcampaign that is supported by the evidencewealreadyhaveandthatpresentsastraightforwardcall-to-action,with a message communicated in such a way that people can engage with it easilyandreadily.

Ifyousay‘five-a-day’tosomeone,thereiseverychancetheywillknowyou’retalkingaboutfruitandveg.Overtime, that campaign has sunk into our subconsciousness and embedded itself asasimplecarrot(ifyou’llexcusethepun)forhealthiereating.

Ofcourse,therewerethecriticswhowantedtopickoverthefinerpointsandthescientificevidencebehindit,butthiscampaign,withitsclearcall-to-action,continuestodoitsjobwell.

Weneedasustainedcampaign,withacompellingcentralmessage.Wewant

people to respond on an emotional level,notjuststatistical.Wewantamovementforchange.

Weknowthatsustainedcampaignsareeffective.Therehasbeensignificantprogressondiversityintheworkplace,forexample,andmostorganisationsare much more aware of their environmentalimpactandhowthatplaysoutwithconsumers.Behavioursarechangingasaresult.

Nowweneedafive-a-daystylecampaign for getting through to employers andemployees.Thisisn’tsolely about creating a mindset amongst employers, but creating a nationwidemovementthatdemandsgoodwork,forgoodreasons.

Tools for sustainable improvement

To create sustainable change and improveproductivity,weneedtooffer

Figure 10: Investors in People job exodus trends3.

Top three things workers like most about their current jobs

Work-life balance

A good team

The pay

37%34%

34%

30%

26%

21%

Top three reasons why people are looking for work

I think I can get more money elsewhere

I think I will enjoy the work elsewhere

I don’t feel that my skills and talents are valued in my current job


the right tools to all employers, not justthelargerones.Thesetoolswillhelp them to act on the campaign in a waythataddsvaluetotheirbusinessororganisation.Thesetoolsshouldbeproven,usefulandeasytoaccess.

This is about building a sustainable modelwithpracticaltoolsandservicesthataddvalueandareviableandaffordable.

Whattheyshouldnotbeisdependentongovernmentfunding.Wehaveseentoomanystop/startinitiativesovertheyearsanditisvitalthatwemovetoanindependent,sustainablemodel.

Wealreadyhavesomegreattoolsatourdisposal and we should broaden that offering as part of a fresh and focused agenda.Thehigh-valueproducts,whichbusinesses are willing to pay for because ofthevaluetheyadd,shouldbeusedtosubsidisearangeofmore-affordableandfree-to-useservicesforsmallerorganisationswithlessresources.Ifwecan encourage the latter to get started ontheirjourney,wewillallbenefit.

Let’s do it, let’s make work better

DoyouremembertheMilkMarketingBoard?Runbyproducers,itoversawmilk production and distribution for morethan60years,supportingproductdevelopmentandpromotingmilkonbehalfoftheentiredairyindustry.Atitspeak,itwasamarketingtour-de-force.Ifyouragemeansyou’renotfamiliar

with their TV ads, just google the classic AccringtonStanleyad–asimpler,morecompellingmessageyou’dbehardpushedtofind.

There are plenty of organisations and Community Interest Companies like ours that understand the challenges oftheproductivitypuzzle,alongwithnumeroushigh-performingandvisionaryemployersofallshapesandsizes.

Wehavetocometogetherasagroup–ourownversionoftheMilkMarketingBoardperhaps.Agroupthatcankick-starta concerted campaign with a powerful message that signposts employers and theirpeopletothetoolsavailable.

Weknowthatengagementstrategiesdefinitelywork–we’veplentyofevidencethatitreallyisgoodtotalk–but let us create a sustainable approach forsustainableresults.

Sustainable improvement in practice

If you want to see sustainable improvementinpractice,takeacloselookatSevenoaksDistrictCouncil–apublic sector organisation that has shown a genius for staff engagement andisreapingthebenefits.Theyareinone of the hardest sectors to recruit for, withverylimitedresources,andyettheyconsistentlydeliverthegoods,achievinghighlevelsofcustomerandstaffsatisfactionalike.

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WhentheyfirstpartneredwithInvestorsinPeopleover10yearsago,Sevenoakswere looking for the right tool to help driveforwardthewaytheymanagedpeople and the opportunities they wantedtocreateforthem.Today,theymaintainPlatinum-levelaccreditation,inspiring others in our business communityandbeyond.Thisincredible‘familybusiness’isveryproudofitspeopleandinvestssignificantlyintheirhappiness.Thepositiveoutcomesforthe organisation and its customers are clearandmeasurable.

And to those who ask, ‘Is it worth it, won’tIbewastingmoneydevelopingpeople for them just to get another job elsewhere?’,theleadersatSevenoaksareadamant:traininganddevelopingpeoplearestilltherightthingstodo.Somepeoplewillalwayswanttomoveon,andthat’sOK,it’sjusttherealityofwork.Buttheymayneverhavejoinedinthefirstplacewereitnotforthecultureandbehavioursthatarenurturedhere.

Performance and productivity up 43% and 35% over same period

Customer satisfaction levels almost 80%

Awards Public Finance Innovation

Award Winner 2017

Council of the Year 2017

all with access to their own coach

Reduced base budget by 35% and headcount

by 41% over 10 years

Figure 11 Sevenoaks Council

DatacompiledfromdiscussionswithSevenoaksleadershipteamandInvestorsinPeople

16.Findingouredge:engagingemployersinthemovementtomakeworkbetter.


17. Unlocking potential: ways of tapping into employees’ ideas to enhance productivityBy Alan Felstead, Cardiff University; Duncan Gallie, University of Oxford; and Francis Green and Golo Henseke, University College London

9717.Unlockingpotential:waysoftappingintoemployees’ideastoenhanceproductivity.

Fewstudiesofproductivitygivetheemployees’perspective;instead,mostareeitherbasedonmacro-levelcompilations of different time series data or employer data taken from plant-levelmanagementinterviewsandsurveys,sometimeslinkedtoindicatorsofofficialproductivity.However,theSkillsandEmploymentSurvey20171 collectedevidenceontherolethatemployeesplayinimprovinghowtheywork and what they produce, and the factors that encourage or discourage them from coming up with these ideas.Thedecisiontocollectsuchdata was made on the grounds that thosewhodothejobarelikelytohaveagoodinsightabouthowtoimprovethe way they work and potentially increasetheproductivityofthemselvesandothers.Theresultssuggestthatgreateremployeeinvolvementiskeytounlocking the potential that employees havetoimprovetheworkprocessestheyuse, the products they produce and/or theservicestheydeliver.However,theresearch also shows that this is where managementpracticeshavetakenabackward step in recent times, with employeeinvolvementonthedecline.

The research reported in this essay makestwodistinctivecontributions2.Thefirstcontributionprovidesnewdata on the ways in which employees increaseproductivitythroughofferingideasandsuggestionsaboutimprovingworkprocesses,productsorservices.These new insights come from eight questionsaskedof2,882employeeswhotookpartinthesurvey.Thesequestions were designed to capture the

willingness and ability of employees tocomeupwithinnovativeideas,and hence contribute to increased productivity.Theyincluded:

Threequestionsontheextenttowhichinnovationisbuiltintojobssuchas‘developingneworimprovedworkprocesses,productsorservices’;

Twoquestionsontheextenttowhich personal suggestions and initiativestakenonanindividualorgroupbasishaveledto‘increasesintheefficiencywithwhichworkiscarriedout’;and

Threequestionsontheextenttowhichsuggestionsgivenbyindividuals,problem-solvinggroups and management consultationmeetingshave‘contributedtoimprovementsbeing made to work processes, productsorservices’.

For analytical purposes, these questions aresummarisedinaproductivity-enhancingindexthatcorrelatespositivelyandsignificantlywithindustryvariationsinONSproductivitydata.Thisprovidesexternalvalidityforourclaimthattheseemployeemeasuresprovideanew,hithertounexplored,perspectiveonproductivity.

Inlinewiththepredictionsofemployee-driveninnovationtheorists,veryfewrespondents reported that they were


not required to contribute to making improvements.Attheotherendofthespectrumaroundhalf(47%)of employees reported that it was ‘essential’forthemtokeepup-to-dateand apply new knowledge to their job andaroundaquarter(24%)reportedthatdevelopingplanstoputnewideasintopracticewere‘essential’.Sevenoutoftenemployees(71%)reportedtakingtheinitiativemorethanonceinthelastyeartoimprovehowtheworkwas carried out and/or the products orservicesproduced.However,nearlytwo-thirds(62%)ofemployeeswerenotable to make meaningful suggestions viaproblem-solvinggroupseitherbecausesuchgroupsdidnotexistorelseemployees’viewswereestimatedbyrespondentstohavehadnoimpact.Itis also noteworthy that employees were relativelyreticentaboutclaimingtohavemade‘agreatdeal’ofdifference.

Changes

Lookingbeyondcurrentarrangements,theSkillsandEmploymentSurvey2017also asked employees ‘what changes, if any, would make you personally more productiveinyourcurrentjob?’Thiswasanopen-endedquestiontowhichoverhalf(58%)respondedintheaffirmative.Thesuggestionsgivenwererecordedverbatim.Athirdofthesesuggestionsrelated to the way in which they were managed, such as the suggestion from a machine operator working for a chemicals company of ‘being allowed to put more ideas forward rather than being told what to do by people

whocan’tdoit’.Adocumentcontrolmanagerworkingincentralgovernmentcomplained about the lack of employee involvementindecision-makingandsuggested that ‘if management wouldlistentome,wecouldimproveantiquatedprocessesandprocedures’.Inasimilarvein,aspeechandlanguagetherapistworkingintheNHSyearnedfor a ‘return to strategic clinical management and a balanced approach toclinicalgovernanceasopposedtoatargetdrivenculture’andsuggestedthat ‘greater professional autonomy is needed’.

Around half of respondents who offered suggestionsaboutwaysofimprovingproductivitymentionedimprovementsin the resources needed to do the job, such as increased training, more staff andbettertoolsandequipment.Therewerealsomanyorganisationallyspecificsuggestions, such as increasing the frequency of window dressing in fashion outlets;factoringinlocalknowledgewhen planning lorry routes in haulage businesses;cuttingoutunnecessarydataentryinback-officeadministration;betterinter-departmentalworkinginarchitecturalpractices;andmorefrequentandtimelystockdeliveryinsupermarketretailing.

Employee involvement

The second contribution of the research isthatitexaminesthemosteffectivewaysoftappingintoemployees’ideasaboutincreasingproductivity.Wefindthatemployeeinvolvementexercised

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individuallyand/orcollectivelyispositivelyandsignificantlyassociatedwithemployees’capacityandwillingnesstoofferproductivity-enhancingideas.Thisfindingisinline with theorists who emphasise thepositiveroleofcollectivevoice3 as well as those who highlight the positiverolethatindividualvoicecanplay4.Furthermore,thesefeaturesofworkexplainaquarter(24.5%)ofthevariationintheproductivity-enhancingindex.

However,despitethebenefitsofemployeeinvolvement,thetimeseriesdatasuggestthatinvolvementhasfalleninBritainoverthelastdecade–taskdiscretionhasdeclined,involvementinorganisationaldecision-makinghasfallenandtradeunioninfluenceoverworkorganisationhasweakened.Therehasbeen,forexample,adownwardmovementinallaspectsoftaskdiscretion with an eight percentage pointfallbetween2006and2017intheproportionthatreportedhavingagreatdealofinfluenceoverhowhardtheywork.Thisproportionofemployeesreporting a great deal of say in decisions that affect the way they carry out their workhasfallenfrom14%in2006to12%in2017.Therehasalsobeenatwo-percentage point fall in the proportion of employees who report that trade unionsattheirworkplacehaveafairorgreatdealofinfluenceoverthewayworkisorganised.

Inaddition,theUKGovernmenthasfailedtotakealeadinreversingthesetrends, with its initial willingness to

contemplate requiring listed companies tohaveemployeerepresentativesoncompanyboardsgivingwaytoasofterrecommendation that companies considerwaysoftakingtheworkers’viewsintoaccountwhenmakingboard-leveldecisions5.EvidencesuggeststhatnoneoftheUK’stop100listedcompanieshavefollowedthegovernment’srecommendationby appointing workers to the Board ofDirectors;yet,thisrunscountertothetypesofchangethatourevidencehas shown are needed to enhance employee-driveninnovationanditspotentialtoenhanceproductivity.

Training and learning

Ourevidencealsosuggeststhattraining and learning, which encourages creativethinking,hasastronglinktoinnovation(andhenceproductivity)as does the presence of target setting and appraisals linked to pay and/or trainingopportunities.Thesefindingscorroboratepreviousstudiesonthelinks that training and performance monitoringhavewithproductivity.Ourresearchsuggeststhatsupportanddevelopmentaccountsforwelloveraquarter(28%)ofthevariationintheproductivity-enhancingindex.Performancemonitoringexplainsjustunderafifth(19%)ofthevariation,andallofthefactorsconsideredhereexplaininexcessofhalf(55%).

However,sinceweonlyhaveonecross-sectional data point, the inferences we make are based on associational not

17.Unlockingpotential:waysoftappingintoemployees’ideastoenhanceproductivity.


causalanalysis.Anotherlimitationtoour approach is that unlike other studies wedonothaveadirectmeasureofproductivity.Furthermore,theresearchfindingsdonotofferapolicypanaceabecausetherearemacro-andmicro-leveldriversofproductivityonwhichwedonothaveemployee-leveldata.Thesedriversincludeinvestmentinphysicalandintangiblecapital,thelevelofsparecapacity, patterns of wage growth and interestrates.

Policy responses

Nevertheless,ourevidencesuggeststhatsupportingahandfulofinnovativeandalreadyproductivesectorsinthe economy in order to raise the UK’sproductivitywillbeinsufficienttothechallenge.Althoughtargetedgovernmentinvestment,inparticularhigh-profilesectorsthrough,forexample,sectordeals,mightraise

productivityinthesesectors,itisunlikelytotriggeragenerallevellingupofproductivityacrosstheeconomy.Onthisbasis, the House of Commons recently concludedthat,‘Thegovernment’sIndustrialStrategyisn’tdoingenoughforthe“everydayeconomy”,insectorssuch as retail and hospitality where millionsofBritsareemployed’6 and where–accordingtoourdata–aroundathirdof‘lowproductivityenhancingjobs’arelocated.Toreallydriveproductivityupwards,thecurrent‘pickingsectors’approachneedstobecomplementedbyamoregeneral-purpose policy response of tapping into employees’knowledgeofthemosteffectivewaysofboostingproductivitysothatimprovementscomefromallsectorsandoccupationallevels.Basedonevidencepresentedinthisessayamore widespread campaign is therefore neededtoraiseproductivity,withincreasingindividualandcollectiveemployeevoiceatitscore.


18. How can we ensure more workers drive and benefit from productivity gains?By Kate Bell, Trades Union Congress


Introduction

The world of work is changing, with new technologies offering opportunities for productivitygrowththatshouldleadtogreater wealth, more fairly shared with workers.

Thischangemeansthatproductivitywillincreasingly rely on human ingenuity, withariseinthevalueofintangiblegoodssuchasintellectualproperty.

But too much debate about how to realise these gains has assumed that workerswillbeleftbehind.Robotswill take our jobs, and the little work that’sleftwillbeorganisedintoaseriesof‘gigs’thatofferlittlesecurity,predictabilityorjobsatisfaction.

Wearguethatthereisnothinginevitableaboutthisextractivemodelofproductivity;instead,productivityandgoodworkcangohand-in-handifworkersaregivenavoiceinshapingthenatureandpaceofchange.Socialdialoguethroughcollectivebargainingisthebestwaytoachievethis.

The changing nature of production

Understandingthelinksbetweengoodworkandproductivityrequiresustounderstand what is being produced and how.Changingmodelsofproduction,fromtheIndustrialRevolutiononwards,haveshapedboththenatureoftheworkandthestrugglestoensureitisdecent.

Thedriveforgreaterproductivitythrough a sweated workforce during theIndustrialRevolutionledtotheformationofthetradeunionmovementandthedemandforaneight-hourday,andeventuallyafive-dayweek.Therise of technologies allowing for faster management of transactions in the 1980scontributedtoamodelwherebylabour was outsourced in increasingly complexsupplychains,bothwithintheUKandacrosstheworld,withanemphasisonreducinglabourcosts.Theimplications of that are still playing outtoday–whetherinthecollapseofoutsourcing companies like Carillion with thelossofmanyjobsintheUKorthecontinued abuse of the rights of workers predominantly based in the global south.ResearchbytheInternationalTradeUnionConfederationin2016estimatedthatthe50largestglobalcompaniesdirectlyemployjust6%ofthe workforce they rely on1.

Today, scheduling technology is increasinglyusedtobring‘just-in-time’productiontechniquestothecontractingofworkersthemselves.Theriseofzero-hourscontracts(nowaffecting900,000workersintheUK)reflectsamodelwhereemployersarepushing the costs of a slow period on theshopfloorontoworkers,ratherthan absorbing these as part of their business.Thousandsofworkersregularlysee their shifts cancelled at the last minute,orareexpectedtocomeintowork at the drop of a hat or face not being offered further work2.

10318.Howcanweensuremoreworkersdriveandbenefitfromproductivitygains?

Thecomingwaveoftechnologicalchangeshould be one that offers the chance toreflectonthefailuresofprevioustechnologicalshiftstoputworkersfirst.The inequality, social discontent and politicalupheavalthatmanywesterncountries now face at least in part reflectsthefailuretomanagepastindustrialtransitions.Perhapsmostimportantly, the nature of the current waveoftechnologicalchangeisonethatincreasingly emphasises the importance of workersthemselves.Awayfromtheslightlyhyperbolic debates about whether and whentherobotswilltakeover,economistsand others are increasingly talking about how to measure the increasing contributionthatideas,innovationandtrustmaketoeconomicvalue.

Totakeoneexample,theeconomistsDianeCoyleandBenjaminMitra-Kahnhavesuggestedthattheriseofthese‘intangible’assets(alongsidetheincreasing need to measure natural resources)requiresanewframeworkformeasuringGDPthatconsidersboth‘human capital, accumulated adaptable skillsandphysicalandmentalhealth’and ‘social and institutional capital, the degree of trust affecting the transactions costsofeconomicexchangeandtheviableprovisionofpublicgoods3’. A measure of production that incorporated these factors would surely see the contribution of good work to raising productivityincreasesstillfurther.

But a change to a model of production thatdeliversbetterqualityworkwon’thappenwithoutsignificantpolicyintervention.AstheInternationalLabour

Organization’s4 global commission on thefutureofworkputitearlierthisyear:

‘Forging this new path requires committed action on the part of

governments as well as employers’ and workers’ organizations. They

need to reinvigorate the social contract that gives working people a just share of economic progress,

respect for their rights and protection against risk in return for their continuing

contribution to the economy.’

Atpresent,toooftenweseeso-calledproductivityimprovementsbeingusedtoreducelabourcosts,ratherthantoachievegenuineinnovation.Itisnotonlyjust-in-timescheduling.‘Workforceanalytics’isexpectedtobeabillion-dollarindustryinthenextdecade,devotedtoarangeof tools for more closely tracking what workers spend their time doing5.TheTUC’sown research6 found that half of all workers alreadyexperiencesurveillanceintheworkplace,andtwo-thirdsthinkitcouldbeusedinwaysthatincreasediscrimination.Toomanyso-called‘innovative’gigeconomycompanieshavesoughttogainacompetitiveadvantagebyreducinglabourcosts–takingpeopleonasself-employedtoavoidaresponsibilitytopaythe minimum wage, sick or holiday pay, despiteclearfindingsfromthecourtsthatthese workers should be entitled to these basic rights7.Takinganapproachthatmeasured our national output differently, theseactivitieswouldclearlybeseenasextractiveratherthanproductive.


Workers voice – the key to better productivity

Luckily,there’snothinginevitableaboutatrendtoevermoreextractiveformsofproduction.Asanincreasingrangeofevidenceshows,enablingworkersto shape the way that technology and innovationareusedcandeliverbothhigherproductivityandahigherqualityofwork.AstheOECD’s8 recent report on thefutureofworkconcluded:

‘Collective bargaining and social dialogue can help addressing the challenges posed by a changing world of work. As demographic

and technological changes unfold, collective bargaining can allow

companies to adjust wages, working time, work organisation

and tasks to new needs in a flexible and pragmatic manner. It can help shaping new rights,

adapting existing ones, regulating the use of new technologies, providing active support to

workers transitioning to new jobs and anticipating skills needs.’

Wealreadyknowthatbusinessesthatembraceworkers’voiceseeimprovementsinkeyareaslinkedwithproductivity.Research(summarisedbyAlexBrysonandJohnForthinaliteraturereviewfortheTUC9)showsthatunionisedworkplacesbenefitfrom:

Lower staff turnover:unionisedworkplaceswithanon-siterepresentativehavelowerratesofstaffturnover(measuredby looking at the number of peoplewhovoluntarilyleaveanemployer).

More effective management of change:job-relatedanxietyaccompanying organisational changeatworkissignificantlyreducedwhenunionsareinvolvedin discussions on the introduction ofthechanges.

Greater innovation:workplaceswithcollectivebargainingaremoreinnovative,withhigherratesofproductinnovation.

More use of ‘high performance’ work techniques:unionisedworkplaces are more likely to employ‘highperformance’methods of work organisation, suchasteam-workingandproblem-solvinggroups,thannon-union workplaces10.

It is notable that these are all features likely to be important in an economy morerelianton‘intangible’goodssuchasinnovation.Butatpresent,toofewBritish workplaces are realising these potentialbenefits.Notonlyhascollectivebargainingcoveragedeclined,fromahighofover70%in1979tojust26%in2018,butthereappearstobelittleeffort by employers to embrace any formofworkplacevoice.Researchin

105

2011foundthatlessthanhalf(47%)of employees thought that managers were good at responding to suggestions fromemployeesandjustoveroneinthree(35%)saidthatmanagersweregoodatallowingemployeestoinfluencedecisions11.A2016surveyofnearly7,500workersfoundthatalthough87%agreedwith the statement ‘I am keen to embrace technologyandmaximiseitsbenefits’,and73%agreedthattechnologywouldimproveproductivity,lessthanoneinfour(24%)saidthattheiremployergavethema say in how technology affects their work12.Thisisarelative,aswellasabsolute,weakness:inaleaguetableofworkforceparticipationacrossEurope,theUKcomessixthfrombottom,withonlyCyprus,Lithuania,Latvia,BulgariaandEstoniaperforming worse13.

A stronger voice for workers

Workplacedialoguethroughcollectivebargainingdeliversbetterresultsforemployers and better quality work for workers,butemployershaveprovedreluctanttorealisethesebenefits,toooften choosing to rely on methods toimproveproductivitythatreduceworkers’qualityoflife.

The rapid pace of technological change makes it increasingly important that wechangeapproach.ThatiswhytheTUCiscallingfornewrightstoembedastrongervoiceforworkersintoeverydayworkinglife.We’vesetoutadetailedplan for reform14, but the headline measuresinclude:

Givingtherighttoaccesstoworkplaces to tell workers aboutthebenefitsofunionmembershipandcollectivebargaining(followingthesysteminplaceinNewZealand).

Newrightstomakeiteasierforworking people to negotiate collectivelywiththeiremployer,including simplifying the process that workers must follow to havetheirunionrecognisedbytheiremployerforcollectivebargaining, and enabling unions toexpandtheirreachinlargeorganisations.

Broadening the scope of collectivebargainingrightstoinclude all pay and conditions (includingpayandpensions,workingtimeandholidays);equalityissues(includingmaternityandpaternityrights);healthandsafety;grievanceanddisciplinaryprocesses;traininganddevelopment;workorganisation(includingtheintroductionofnewtechnologies)andthenatureandlevelofstaffing.

The establishment of new bodies for unions and employers to negotiate across entire sectors, starting with hospitality and socialcare.

Previousindustrialrevolutionshavetoooftenleftworkersbehind.Thisoneoffersachancetodothingsdifferently.

18.Howcanweensuremoreworkersdriveandbenefitfromproductivitygains?


19. AfterwordBy Sarah Davidson, CEO, Carnegie UK Trust

10719.Afterword.

Forover100years,theCarnegieUKTrusthassoughttoadvancethewellbeingofpeopleacrosstheUKandIreland.Paidworkhasafundamentalrole in supporting our personal, community and societal wellbeing, enablingustoprovideforourselvesandourfamilies;buythegoodsandservicesweneed;buildconnectionsinourcommunities;andestablishourindividualandcollectivesenseofpurposeandidentity.Ourwellbeingisaffectednotonlybyhavingaccesstowork,butbyhowweexperienceit.AstheWhatWorksCentreforWellbeingputs it, when it comes to wellbeing, ‘having a job is good and having a good quality job is miles better’.1

It is well understood that the current levelsofrecordemploymentintheUKcanmaskhugedifferencesinthequalityofworkexperiencedbyworkersin different industrial sectors, in different regions, and in different demographic groups.Specifically,weknowthatworkers’experienceofkeyaspectsofwork,suchastermsandconditions;payandbenefits;physicalandmentalstrain;jobdesign;supportstructures;voiceandrepresentation,andwork-lifebalance,canvaryenormouslyacrosstheUKlabourmarket.Whilegoodworkhas enjoyed a much needed increase in policy attention in recent years thereremainsmuchtodo:weneedtocontinuetoexploreandadvancetherangeofdifferentleversthatmightbedeployedtoextendtheavailabilityofworkthatimproveswellbeingforall.

Better understanding and promoting of the role that good work can play in helpingtosolvetheUK’sproductivitypuzzleisacrucialpieceofthisjigsaw.There is of course some debate about the concept and measures ofproductivity,butthehistoricalevidenceoftherelationshipbetweenproductivitygrowth,higherwagesandimprovementsinlivingstandardsisclear.IfsolvingtheUK’sproductivitycrisis is the most fundamental challenge facingUKpolicymakerstoday,asAndyHaldane outlines in his Foreword to this essay collection, then we need to understand and demonstrate how good work can play a central role in meeting thischallenge.

That was the task that we embarked upon in bringing together this essay collectionandweareextremelygratefulfor the wealth of rich and thoughtful perspectivesexpressedbytheauthors.Nosinglesetofstakeholderscanaddress alone the challenges we face in supporting the creation of more good andproductivejobs.Thesolutionstosuchcomplex,multi-layeredchallengeswill only be found by bringing people together from different backgrounds andexperiences.Forthatreason,wearedelightedthatthecollectiongivesvoicetoperspectivesfrompolicy;business;academia;andtradeunions,as well as contributions ranging from aUK-wideangletoaspecificfocusonhow this agenda is being taken forward inScotland,WalesandinNorth-EastEngland.


Wewereopen-mindedaboutwhatourwriterswouldtellus:wedidnotexpecttofindasilverbulletforpoorqualityworkandlowproductivity.Whattheauthorsinthiscollectionhaveprovidedare some clear priority actions for how we can rise to the challenge, with a particular focus on tackling ‘bad work’amongtheUK’slongtailofpoorproductivityperformingfirms,andfocusing on empowering workers to use technology in a way that makes workmorefulfillingandproductive.Meanwhile,innovativenewthinking

continues to emerge on how manifold aspectsofworkquality-likefairpay,genuinetwo-wayflexibility,andeffectivetraining–canleverimportantproductivitybenefits.

These issues are ripe for further exploration.Welookforwardtoworkingoverthecomingyearwithallthosewith a stake in this agenda, including governments,tounderstandhowtheideas set out in these essays can be implementedtodelivermorefulfillingworkformanymorepeople.


Tera Allas CBE, Director of Research and Economics, McKinsey & Company

TeraisDirectorofResearchandEconomicsatMcKinsey’sUnitedKingdomandIrelandOffice,workingcloselywiththeMcKinseyGlobalInstitute.SheleadsMcKinsey’sresearchongovernmentandbusinessproductivity,technologyadoption, and future of work, bringing togetherdeepexpertiseandmorethantwodecadesofexperienceineconomics,publicpolicy,innovation,andleadership,aswellastenyearsofexperienceasamanagement consultant focusing on corporateandbusiness-unitstrategy.

Tera is a frequent author, panellist, and speaker on topics ranging from economicandinnovationpolicyandindustrialstrategytoartificialintelligencetogovernmentperformancemeasurement.SheisFellowoftheAcademyofSocialSciencesandservesasatrusteeoftheUnitedKingdom’sProductivityLeadershipGroup,theNationalInstituteofEconomicandSocialResearch,andtheRoyalEconomicSociety.ShewaspreviouslyontheboardofInnovateUK,theUnitedKingdom’snationalinnovationagency,andamemberoftheStatesofJerseyfiscalpolicypanel.In2018,TerawasappointedCommanderoftheOrderoftheBritishEmpire(CBE)forservicestoeconomicpolicy.

Jennifer Beckwith, Principal Policy Advisor, Employment Law & Employee Relations, CBI

JenniferisPrincipalPolicyAdvisorinemploymentissuesattheCBI.ShecurrentlymanagestheCBI’scampaigntoboostUKproductivitybyimprovinghowbusinesseslead,developandengagetheirpeople.ShealsorepresentsUKemployersattheUN’sInternationalLabourOrganisation.JenniferhaspreviouslyledtheCBI’spolicy-makingondiversity&inclusion,genderpaygapreporting,modernslaveryandlabourmarketenforcement.PriortotheCBI,JenniferwasapolicyresearcheratLondoncharityCommunityLinksonpublicservicereformandprovidededitorial assistance to the International InstituteofSocialHistory,Amsterdam.ShehasaMastersinSocialandEconomicHistoryfromUtrechtUniversity,Netherlands.

About the Authors


Kate Bell, Head of Rights, International, Social and Economics, TUC

KateBellistheHeadoftheRights,International, Social and Economics departmentattheTUC.

TheDepartmentleadstheTUC’swork on boosting employment rights, promoting social and economic policies thatbenefitworkingpeople,andbuildinginternationalsolidarity.

BeforejoiningtheTUC,KateworkedasHeadofPolicyandPublicAffairsforalocalauthority,fortheLabourParty,andforthecharitiesChildPovertyActionGroupandGingerbread.KateisalsoamemberoftheLowPayCommission,representingworkers.

Derek Bosworth, Honorary Professorial Fellow, Warwick Institute for Employment Research

DerekhasworkedwiththeWarwickInstituteforEmploymentResearch(aleading international research centre focusing on the labour market and its relationshipswiththewidereconomy)foroverthirtyyears.UntilrecentlyDerekwasanHonoraryProfessoratWuhanUniversityofTechnology,aSeniorResearchAssociateatSt.Peter’sCollege,OxfordandaVisitingProfessorattheUKCommissionforEmploymentandSkills.He has continued to take an interest in issues relating to skills and employment throughouthiscareer.Hehasworkedextensivelyonboththeoreticalandempirical labour supply and demand models, as well as analysing their implications for skill shortages, educationandtraining.


Felicity Burch, Director of Innovation and Digital, CBI

Felicityleadstheorganisation’spolicywork to create the conditions that enable businesses to come up with new ideas, investinresearchanddevelopment(R&D)andadoptnewtechnologies.

Priortotakinghercurrentrole,shespenttwoyearsastheHeadofInnovationandDigital,wheresheledtheCBI’ssuccessfulcampaignforthegovernmenttocommittoatargetforR&Dexpenditure,aswellasagenda-settingworkontechnologyadoption.Felicity’sfirstroleattheCBIwasasthePrincipalPolicyAdviseronlabourmarkets,whereshewasresponsiblefortheCBI’sagendaonpayandthefutureofwork.

Felicity’sbackgroundisinEconomicPolicy,focusedonbusinessgrowth.Before the CBI, she was Senior EconomistatEEF,themanufacturers’organisation.Inthisrolesheledthedevelopmentoftheirinnovationpolicy and industrial strategy work and deliveredabreadthofeconomicandindustrialtrendsresearch.ShehasalsoworkedonExperian’sEconomicPolicyteam,withafocusonregionalgrowth.

Tony Danker, Chief Executive, Be the Business

TonyDankerisChiefExecutiveoftheBetheBusiness,thecampaignforUKproductivityandcompetitiveness.BetheBusiness was founded and is chaired by SirCharlieMayfield(ChairmanoftheJohnLewisPartnership)andsupportedbythesomeofthecountry’sleadingbusinessesandUKGovernment.

TonywaspreviouslytheChiefStrategyOfficeratGuardianNews&Media(GNM),wherehehadresponsibilityfortheGuardian’sstrategy,businessdevelopmentandanalyticsfunctions.PriortothisrolehewasInternationalDirector,responsibleforGNM’sinternationalexpansion.

BeforejoiningGNM,Tonyspenttwoyears in public policy and was a Special AdviserinHMTreasury.Hepreviouslyspent10yearsatMcKinsey&Company,withexpertiseingovernmentandorganisationalconsulting.


Sarah Darrall, Research Assistant, RSA

SarahisanAssistantResearcherintheEconomy,EnterpriseandManufacturingteamattheRSA,andalsoprovidesresearchassistancetotheCEO,MatthewTaylor.ShehasrecentlycompletedaBachelor of Science in Economics at the UniversityofBristol.

Paul Devoy, CEO, Investors in People

PaulDevoyhasbeenheadingupInvestorsinPeoplesince2011.PaulledthebuyoutoftheorganisationfromUKGovernmentownershipintoitbecomingaCommunityInterestCompanyin2017.

MovingawayfromGovernmenthasallowedInvestorsinPeopletosignificantlyredevelopandexpandtheirproducts,andnowtheyoffervariousaccreditations that make work better as well as a free platform that supports organisationstoJumpstarttheirpeoplestrategy.

InapreviouslifePaulwasHeadofOrganisationalDevelopmentattheScottishPrisonService.Duringhistime there all prisons in Scotland wereawardedInvestorsinPeopleaccreditation.

Gill Dix, Head of Workplace Policy, Acas

GilDixisHeadofWorkplacePolicyatAcas,Britain’sAdvisory,ConciliationandArbitrationService.Acasprovidesfreeandimpartialinformation,adviceandtraining to employers and employees on all aspects of workplace relations and employmentlaw,supportingpositiverelationships between employers and employeesandprovidingconciliationservicestoresolveworkplacedisputes.Acasalsoprovidesresearchandcommentaryontheworldofwork.GillhasbeenwithAcassince1994,andwasHead of the Acas research team before leading a programme of work on public policy.


Alan Felstead, Research Professor, Cardiff University

AlanisResearchProfessorintheSchool of Social Sciences at Cardiff University.HeisprojectleadontheSkillsandEmploymentSurvey2017andin2018-2019hesatontheWelshGovernment’sFairWorkCommissionastheIndependentExpertAdvisor.HehaspreviouslyheldpositionsatNuffieldCollege,UniversityofOxfordandtheUniversityofLeicesterandhasbeenVisitingProfessorattheESRCCentreforLearningandLifeChancesinKnowledgeEconomiesandSocieties(LLAKES),UCLInstituteofEducationsince2009.Hisresearchfocuseson:thequalityofwork;training,skillsandlearning;non-standardemployment;andthespacesandplacesofwork.Hehas completed has completed numerous fundedresearchprojects(including15fundedbytheESRC),producedsevenbooks,andwrittenover200journalarticles, book chapters, research reports anddiscussionpapers.Heiscurrentlyhelping to enact some of the Fair WorkCommission’srecommendationsthroughapart-timesecondmenttoWelshGovernment.However,hewriteshereinapersonalcapacity.

Patricia Findlay, Professor of Work and Employment Relations, University of Strathclyde and Co-Chair, Fair Work Convention

Patriciaistheco-chairoftheFairWorkConventioninScotlandandtheDirectoroftheScottishCentreforEmploymentResearch.PatriciaisalsoProfessorofWorkandEmploymentRelationsattheDepartmentofHumanResourceManagedattheUniversityof Strathclyde Business School, where shealsoleadsthe‘InnovatingWorks’programmeandtheFair,InnovativeandTransformativework(FITwork)programme.Herresearchandteachingexpertiseisinthestudyofworkandthe management of the employment relationship.


Duncan Gallie, Emeritus Fellow, Nuffield College, University of Oxford

DuncanisEmeritusFellowatNuffieldCollege,UniversityofOxford.HejoinedNuffieldCollegeasanOfficialFellowin1985andbecameProfessorofSociologyin1996.HehasbeenVice-PresidentSocial Sciences of the British Academy (2004-2006)andForeignSecretaryoftheBritishAcademy(2006-2011).Hisresearch is in economic sociology, in particular the quality of work and the socialconsequencesofunemployment.He is currently working on two main projects.ThefirstisaEuropeancomparativestudyontheeffectsofemployeeinvolvementonworkengagementandskilldevelopment.The second is a research programme examiningchangesinskillsandemployment conditions in Britain from 1986to2017.

Francis Green, Professor of Work and Education Economics, University College London

FrancisisProfessorofWorkandEducation Economics, at the Institute of EducationatUniversityCollegeLondon.AftergraduatinginPhysicsatOxford,Francis switched to economics with an MScattheLondonSchoolofEconomics,beforewritinghisPhDthesisonthetheoryofsavingatBirkbeckCollege.He began his career at the age of 22 at KingstonPolytechnic.AfterspellsattheUniversitiesofMassachusetts,Leicester,LeedsandKent,in2010hemovedtotheInstituteofEducation(nowafacultyofUCL),wherehenowworksintheLLAKESresearchcentreandintheCentreforGlobalHigherEducation.Hisresearch focuses on education, skills, the graduate labour market and the qualityofwork.Hislatestbook,co-authoredwithDavidKynastonisEngines of Privilege. Britain’s Private School Problem,publishedbyBloomsburyPress.The author of ten earlier books, and morethan150papers,healsoworksasanoccasionalexpertadvisoronskillsandjobqualityfortheUKgovernment,theOECDandtheEuropeanUnion.


Josh Hardie, Deputy Director-General, CBI

JoshisCBIDeputyDirector-General.Anexperiencedcorporateaffairsspecialist,JoshjoinedtheCBIin2016andleadstheCBI’soverallpolicydevelopment,mediaandcampaigningwork.FromBrexitandglobaltradetoIndustrialStrategy,regionalgrowthandtheCBI’snewcampaign,Everyone’sbusiness,allJosh’sfocusisaimedathelpingbusinesstotackleinequalityandraiselivingstandards.

JoshjoinedfromTesco,wherehewasGroupDirectorforCorporateResponsibility.HehaspreviouslyheldExec-levelrolesatEdComsLtdcreatingbehaviourchangestrategiesandcampaignsforbusinesses,governmentdepartmentsandthevoluntarysector,and an educational charity, Education Extra,campaigningwithschoolsandworkingwiththeGovernmentoneducationalissues.

Golo Henseke, Senior Research Associate, University College London

GoloisaSeniorResearchAssociateattheCentreforGlobalHigherEducation(CGHE)andtheCentreforLearningandLifeChances(LLAKES)attheUCLInstituteofEducation.Golo’sresearchfocus on inequalities in education and degree outcomes, their relationship and antecedents,skillsdevelopmentandskillsutilisationinthelabourmarket.His work was recognised in recent reviewsoftheBritishhighereducationsystem, consultations for the Teaching ExcellenceFramework,andintherevisionoftheBritishOccupationalClassification.


Mary O’Mahony, Professor of Applied Economics, King’s College London

MaryO’MahonyisProfessorofAppliedEconomics.Herresearchinterests include measuring and explaininginternationaldifferencesinproductivity,technologyandgrowth;human capital formation and its impactsonproductivityandmeasuringperformanceinpublicservices,includinghealthandeducation.ShejoinedKing’sinMay2013andwaspreviouslyProfessoratBirminghamBusinessSchool,UniversityofBirmingham.SheiscurrentlyavisitingfellowattheNationalInstituteofEconomicandSocialResearch,LondonandaresearchassociateattheGermanInstituteforEconomicResearch,ZEW,Mannheim.Her research has been funded by numerous framework grants from the European Commission and she is currently a participant and a member of the management team of the Economic StatisticsCentreofExcellence,fundedbyONS.

Zayn Meghji, Programme Manager, RSA

ZaynisaprogrammemanagerattheRSA,supportingtheorganisation’sinternalchangeproject.PriortojoiningtheRSA,hecompletedanMScinEnvironment,CultureandSociety,heldvariousrolesinthecharitysector,andworked as a research analyst for a humanresourceconsultancy.

Anna Round, Senior Research Fellow, IPPR North

AnnaisaSeniorResearchFellowattheInstituteforPublicPolicyResearch(IPPR)North.Annaworksoneducation,skills and social policy across the northofEngland.Inaddition,shehaspublishedseveralreportsfocusingontheeconomyoftheNorthEastofEngland.BeforejoiningIPPR,Annaworkedasaresearcheratseveralnorthernuniversities,andasananalystingovernment.PreviouslyshelecturedintheoreticallinguisticsatLondonUniversity.


Emma Stewart, CEO, Timewise

EmmaisCEOandCo-FounderofTimewiseandWomenLikeUs,responsible for the strategic direction ofboththeorganisation’sbusinessconsultancyanditssocialfoundation.Her leadership role sees her working with businesses, thought leaders, policy makers and social reformers to test andscaleinnovativesolutionswhichdeliversuccessful,sustainable,two-wayflexibility.Asaresultofherexpertiseintheflexibleworkingsphere,Emmahasdevelopedahighprofileasakeyopinionformer,advisorandspeaker.Shehascontributedtonumerousgovernmenttask-forces,reportsandinitiatives,focusing on how to encourage more peoplewhoneedtoworkflexiblyinto the workplace, shape the labour markets of the future and raise family livingstandards.Priortoco-foundingTimewise, Emma worked in a range of developmentrolesacrosstheprivate,civicsocietyandsocialenterprisesectorsandwithindocumentarytelevision.

Matthew Taylor, Chief Executive, RSA

MatthewTaylorhasbeenChiefExecutiveoftheRSAsinceNovember2006.InJuly2017Matthewpublishedthereport‘GoodWork’;anindependentreviewintomodernemployment,commissionedbytheUKPrimeMinister.In2019healsobecameinterimDirectoroftheGovernment’sOfficeLabourMarketEnforcement.PriortotheRSA,MatthewwasChiefAdviseronPoliticalStrategytothePrimeMinisteranddirectoroftheInstituteforPublicPolicyResearch.MatthewisapanellistontheprogrammeMoralMazeandserieseditor of the Thames and Hudson ‘Big Ideas’books.


Fabian Wallace-Stephens, Senior Researcher, RSA

FabianisaSeniorResearcherintheRSA’sEconomy,EnterpriseandManufacturingteam.Heisparticularlyinterestedinself-employment,thegig-economy and the impacts of technology onjobsandhasco-authoredseveralrecentRSAreportsonthesetopics.HecurrentlyleadstheFutureWorkAwards–asearchforinnovationsfromaround the world that are emerging to address the challenges workers face in finding,creatingandsustaininggoodwork.FabianhasanMScinPhilosophyandPublicPolicyfromtheLSE.PriortojoiningtheRSAheworkedatasocialenterpriseforresponsiblebusiness.

Chris Warhurst, Director, Warwick Institute for Employment Research

AsDirectorofIER,ChrisWarhurstismotivatedbywantingtoseebetterscientificandpolicy-makerunderstandingofworkandemployment.HeisanAssociateResearchFellowofSKOPEattheUniversityofOxford,aFellowoftheRoyalSocietyoftheArtsandaTrusteeoftheTavistockInstituteinLondon.HewaspreviouslyProfessorofWorkandOrganisationalStudiesattheSydneyUniversityBusinessSchoolandFoundingDirectoroftheScottishCentreforEmploymentResearchatStrathclydeUniversityBusinessSchool.HeiscurrentlyChairoftheManagementCommittee for the journal Human Relations,co-editorofPalgrave’sCriticalPerspectivesonWorkandEmploymentbookseriesandanEditorialAdvisoryBoardMemberforResearchintheSociologyofWork.Chris’researchexpertisecentresonjobquality,skillsandaestheticlabour.ChishasbeenanexpertadvisortotheUK,AustralianandScottishGovernmentsaswellastheOECD,OxfamScotlandandtheScottishLivingWageCampaign,andhaspublished16books,over50journalarticles,over60bookchaptersandnearly50reportsforgovernmentandpractitioners.


Matthew Whittaker, Director, Pro-Bono Economics

MattjoinedPro-bonoEconomicsinNovember2019,havingspenttheprevious11yearsattheResolutionFoundationthinktank.HejoinedResolutionFoundationasSeniorEconomist shortly after its creation, andwasinstrumentalindevelopingitsresearchoutputanddefiningthelow-to-middle income group that is the focus oftheorganisation’swork.Hewentonto grow its research team considerably, becoming Chief Economist and, from 2015,DeputyChiefExecutive.Heisaleadingexpertonthesubjectofincomeinequality, and has worked across a numberofareasrelatedtoUKlivingstandards.PriortojoiningResolutionFoundation,heworkedforfiveyearsintheHouseofCommonsLibrary,whereheprovidedeconomicandstatisticaladvicetoindividualMPsandtoanumberofselectcommittees.

Louise Woodruff, Policy and Partnerships Manager (Work), Joseph Rowntree Foundation

LouiseisaPolicyandPartnershipsManager(Work)attheJosephRowntreeFoundation(JRF).LouiseleadsJRF’sGoodJobsStrategyaimingtoinfluenceemployerssothatmorepeoplemoveoutofpovertythroughwork.Louisehasexpertiseincludesdevelopingsolutionstoin-workpovertyintheUK.LouiseledJRF’sworkonforcedlabourintheUKandalsoworkedonJRF’s2016strategy to Solve UK Poverty.LouiseholdsaB.A.fromSt.John’sCollege,OxfordandaPGCEfromtheUniversityofBath.HerbackgroundisineducationhavingpreviouslyworkedondevelopingwideningparticipationactivityattheUniversityofOxfordafterstartingher career as a science teacher in a comprehensiveschool.


1. Overview

1 Taylor,M.,2017.Good work: Taylor review of modern working practices.London:HMGovernment.Availablefrom:https://www.gov.uk/government/publications/good-work-the-taylor-review-of-modern-workingpractices.[AccessedOctober2019]

2 Irvine,G.,White,D.andDiffley,M.,2018.Measuring good work.Dunfermline:CarnegieUKTrust.

2. Does good work have a positive effect on productivity? Developing the evidence base

1 Taylor,M.,2017.Good work: Taylor review of modern working practices.London:HMGovernment.Availablefrom:https://www.gov.uk/government/publications/good-work-the-taylor-review-of-modern-workingpractices.[AccessedOctober2019]

2 Siebern-Thomas,F.,2005.JobqualityinEuropeanlabourmarkets.In:S.Brazen,C.LuciforaandW.Salverda,eds.Job quality and employer behaviour.NewYork,NY:PalgraveMacmillan,31–66.

3 OurcolleaguesfromtheWarwickInstituteforEmploymentResearchWilHuntandSudipaSarkarwerepartoftheprojectteam.


5 Warhurst,C.,et al., forthcoming for the CarnegieUKTrust.

6 WewouldliketothankAlanFelsteadofCardiffUniversityandDuncanGallieofOxfordUniversityforfacilitatingour early access to the latest Skills and EmploymentSurveydataforthesesanalyticalpurposes.

7 Thereare60sectorsandeachworkerisallocatedoneofthe60productivitymeasures.

8 Fordetails,seeBosworth,D.,et al., forthcomingfortheCarnegieUKTrust.

9 It should be emphasised that these findingsemergefrominitialanalysis.Further,morecomprehensive,analysisusing the dataset is forthcoming, publishedbytheWarwickInstituteforEmploymentResearchandCarnegieUKTrust.

10 DetailsofthissectoralclassificationcanbefoundinBosworth,D.etal(opcit.).Indicatively,thePrimarysectorincludesagriculture,miningandforestry;Low-TechManufacturingcoversfood,paperandwatertreatmentandsupply;KnowledgeIntensivecoversfilm&television,telecommunicationsandcomputerprogramming;LessKnowledgeIntensivecoveraccommodation,food&beverageandtravel.

Endnotes

https://www.gov.uk/government/publications/good-work-the-taylor-review-of-modern-workingpractices







3. From trade-offs to win-wins: how we can unlock productivity and good jobs

1 HMGovernment,2017.Industrial Strategy: building a Britain fit for the future.Availablefrom:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/664563/industrial-strategy-white-paper-web-ready-version.pdf [AccessedOctober2019].

2 Confederation of British Industry (CBI),2017.From ostrich to magpie: increasing business take-up of proven ideas and technologies.Availablefrom:https://www.cbi.org.uk/media/1165/cbi-from-ostrich-to-magpie.pdf[AccessedOctober2019].

3 See,forexample,OfficeforNationalStatistics(ONS),2019.Productivity jobs, productivity hours, market sector workers, market sector hours.Availablefrom:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/ datasets/productivityjobs productivityhoursmarketsector workersmarketsectorhours [AccessedOctober2019];ONS,2019.Employment in the UK: September 2019.Availablefrom:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentand employeetypes/bulletins/employmentintheuk/september2019 [AccessedOctober2019];ONS,

2019.Number of people in employment (aged 16 and over, seasonally adjusted).Availablefrom:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentand employeetypes/timeseries/mgrz/lms [AccessedOctober2019].

4 See,forexample,ONS,2019.Labour market statistics time series,2019.Availablefrom:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentand employeetypes/datasets/labourmarketstatistics [Accessed October2019];ONS,2019.EMP13: Employment by industry.Availablefrom:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentand employeetypes/datasets/employmentbyindustryemp13 [AccessedOctober2019];ONS,2019.A05 SA: employment, unemployment and economic inactivity by age group (seasonally adjusted).Availablefrom:https://www.ons.gov.uk/employmentand labourmarket/peopleinwork/employmentandemployee types/datasets/employment unemploymentandeconomic inactivitybyagegroupseasonally adjusteda05sa[AccessedOctober2019].

5 ONS,2019.Personal and economic well-being: what matters most to our life satisfaction?Availablefrom:https://webarchive.nationalarchives.gov.uk/20160106043118/http://

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/664563/industrial-strategy-white-paper-web-ready-version.pdf






https://www.cbi.org.uk/media/1165/cbi-from-ostrich-to-magpie.pdf



https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/datasets/productivityjobsproductivityhoursmarketsectorworkersmarketsectorhours






https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/employmentintheuk/september2019





https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/timeseries/mgrz/lms




https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/labourmarketstatistics





https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/employmentbyindustryemp13





https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/employmentunemploymentandeconomicinactivitybyagegroupseasonallyadjusteda05sa








https://webarchive.nationalarchives.gov.uk/20160106043118/http

https://webarchive.nationalarchives.gov.uk/20160106043118/http


www.ons.gov.uk/ons/rel/wellbeing/measuring-national-well-being/what-matters-most-to-personal-well-being-in-the-uk-/index.html [AccessedOctober2019].

6 ONS,2019.Personal and economic well-being.

7 ONS,2019.Measures of national well-being dashboard.Availablefrom:https://www.ons.gov.uk/peoplepopulationandcommunity /wellbeing/articles/measuresof nationalwellbeingdashboard /2018-09-26[AccessedOctober2019];Wheatley,D.andGifford,J.,2019.UK working lives 2019 survey: full report.London:CharteredInstituteofProfessionalDevelopment.Availablefrom:https://www.cipd.co.uk/Images/uk-working-lives-2019-v1_tcm18-58585.pdf

8 HealthandSafetyExecutive,2019.Working days lost in Great Britain.Availablefrom:http://www.hse.gov.uk/statistics/dayslost.htm [Accessed October2019].

9 HealthandSafetyExecutive,2019.Work-related stress, anxiety or depression statistics in Great Britain.Availablefrom:http://www.hse.gov.uk/statistics/causdis/stress.pdf [AccessedNovember2019].

10 Jenkins,S.,2019.TheincomedistributionintheUK:apictureofadvantageanddisadvantage.In: H.DeanandL.Platt,eds.Social advantage and disadvantage.

Oxford:OxfordUniversityPress,135–160.

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7. Enabling fair work, productivity and inclusive growth: lessons from Scotland

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5 Findlay,P.,et al.,2018.Creating and capturing value at work: who benefits? London:CharteredInstituteofProfessionalDevelopment.Availablefrom:https://www.cipd.co.uk/knowledge/work/job-quality-value-creation/value-work-report [AccessedJanuary2018].

6 Findlay,P.,et al.,2019.Influencing employers so more people break free from poverty through work. York:JosephRowntreeFoundation.Availablefrom:https://www.jrf.org.uk/report/influencing-employers-so-more-

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10 FairWorkConvention,2016.op.cit.

8. Fair work, low pay and productivity in Wales

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2019.Newport:OfficeforNationalStatistics.

3 Prothero,R.et al.,2019.Regional and sub-regional productivity in the UK.

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8 NationalAssemblyforWales,2018.Making the economy work for people on low incomes, equality.Cardiff:LocalGovernmentandCommunitiesCommittee,NationalAssemblyforWales.

9 FairWorkCommission,2019.Fair Work Wales: report of the Fair Work Commission.Cardiff:WelshGovernment.

10 Felstead,A.,et al.,2019.Unlockingpotential:waysoftappingintoemployees’ideastoenhanceproductivity.Submittedforforthcoming publication in the BritishJournalofIndustrialRelations;sharedprivatelywiththeeditorinJune2019.

10. Is it time to turn the future of work on its head?

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6 Innes,D.,2020.What has driven the rise in in-work poverty?York:JosephRowntreeFoundation,forthcoming.

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25 Findlay,P.,et al.,2019.Influencing employers so more people break through poverty through work.York:JosephRowntreeFoundation.Availablefrom:https://www.jrf.org.uk/report/influencing-employers-so-more-people-break-free-poverty-through-work[AccessedOctober2019].

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26 Corfe,S.andGicheva,N.,2019.Pay progression for low paid workers – paper 2.London:SocialMarketFoundation.Availablefrom:http://www.smf.co.uk/publications/pay-progression-low-paid-workers-2/ [AccessedOctober2019].

27 Cribb,J.,et al.2019.The future path of minimum wages.London:InstituteforFiscalStudies.Availablefrom:https://www.ifs.org.uk/election/2019/article/the-future-path-of-minimum-wages[AccessedNovember2019].

28 https://www.jrf.org.uk/blog/how-people-experiences-poverty-can-help-unlock-solutions [Accessed October2019].

14. Can prioritising worker health help close the North’s productivity gap?

1 James,C.,Devaux,M.andSassi,F.,2017.Inclusive growth and health. OECDWorkingPapers No.103.Paris:OECD.Availablefrom:http://dx.doi.org/10.1787/93d52bcd-en[Accessed October2019]

2 HMGovernment,2018.Good work plan.Availablefrom:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/766167/good-work-plan-command-paper.pdf [Accessed October2019]

3 Colebrook,C.,2018.Measuring what matters: improving the indicators of economic performance.London:InstituteforPublicPolicyResearch.Availablefrom:http://www.ippr.org/research/publications/measuring-what-matters[AccessedOctober2019]

4 Stiglitz,J.,Sen,A.andFitoussi,J.,2008.Report by the Commission on the Measurement of Economic Performance and Social Progress.Paris:CommissionontheMeasurementofEconomicPerformanceandSocialProgress. Availablefrom:http://ec.europa.eu/eurostat/documents/118025/118123/Fitoussi+Commission+report [AccessedOctober2019]

5 NewZealandGovernment,2019.The wellbeing budget. Availablefrom:https://treasury.govt.nz/sites/default/files/2019-05/b19-wellbeing-budget.pdf [AccessedOctober2019]

6 Marmot,M.,2015.The health gap: The challenge of an unequal world. London:Bloomsbury.

7 Bambra,C.,et al.,2018.Health for wealth: building a healthier Northern Powerhouse for UK Productivity.Manchester:NorthernHealthSciencesAlliance.Availablefrom:http://www,thenhsa,co,uk/app/uploads/2018/11/NHSA-REPORT-FINAL.pdf[AccessedOctober2019]

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8 Bambra,C.,et al.,2018.Health for wealth.

9 Jagger,C.,2014.Future health trends in the North East and how they might be supported or disrupted by policy changes.London:GovernmentOfficeforScience.Availablefrom:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/444167/future-health-trends-north-east.pdf[AccessedOctober2019]

10 OfficeforNationalStatistics(ONS),2018.Health state life expectancy,Dataset.London:OfficeforNationalStatistics.Availablefrom:https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthand lifeexpectancies/datasets/health statelifeexpectancyallagesuk [AccessedOctober2019]

11 Round,A.,2017.Extending working lives: a devolved, lifecourse approach to enabling work beyond State Pension Age.London:InstituteforPublicPolicyResearch.Availablefrom: https://www.ippr.org/files/publications/pdf/extending-working-lives_May2017.pdf [Accessed October2019]andRaikes,L.,Millward,L.andLonglands,S.,2018.State of the North 2018: reprioritising the northern powerhouse.London:InstituteforPublicPolicyResearch.Availablefrom:https://www.ippr.org/research/publications/state-of-the-north-2018[AccessedOctober2019]

12 Barr,J.,Magrini,E.andMeghnagi,M.,2019.Trends in economic inactivity across the OECD: the importance of the local dimension and a spotlight on the United Kingdom.Paris:OECD.Availablefrom:https://www.oecd-ilibrary.org/docserver/cd51acab-en.pdf?expires=1571983006&id=id& accname=guest&checksum=080A 5497C835DCA9FC384441AE197 335[AccessedOctober2019]

13 ChiefMedicalOfficer,2018.Health 2040: better health within reach.London:DepartmentofHealth&SocialCare.Availablefrom:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/767549/Annual_report_of_the_Chief_Medical_Officer_2018_-_health_2040_-_better_health_within_reach.pdf[AccessedOctober2019]

14 Hochlaf,D.,Quilter-Pinner,H.andKibasi,T.,2019.Ending the blame game: the case for a new approach to public health and prevention.London:InstituteforPublicPolicyResearch.Availablefrom:https://www.ippr.org/files/2019-06/public-health-and-prevention-june19.pdf [AccessedOctober2019]

15 SeeLang,J.,et al.,2012.Psychosocialwork stressors as antecedents ofmusculoskeletalproblems:asystematicreviewandmeta-analysisofstability-adjustedlongitudinal studies, Social Science & Medicine,75(7),1163–1174;

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Dall,T.,et al.,2013.Modelingtheindirect economic implications of musculoskeletal disorders and treatment, Cost Effectiveness and Resource Allocation,11article5;andDeVol,R.andBedroussian,A.,2007.An unhealthy America: the economic burden of chronic disease. Charting a new course to save lives and increase productivity and economic growth.SantaMonica,CA:MilkenInstitute.Availablefrom:https://assets1b.milkeninstitute.org/assets/Publication/ResearchReport/PDF/chronic_disease_report.pdf [AccessedOctober2019]

16 L’Hôte,E.,Fond,M.andVolmert,A.,2018.Seeing upstream: mapping the gaps between expert and public understandings of health in the United Kingdom.AFrameWorksMaptheGapsReportcommissionedbytheHealthFoundation.Washington,DC:FrameWorksInstitute.

17 L’Hôte,E.et al.,2018.Seeing upstream.

18 Black,C.,2008.Working for a healthier tomorrow: Dame Carol Black’s review of the health of Britain’s working-age population.ReportpresentedtotheSecretaryofState for Health and the Secretary ofStateforWorkandPensions,17March2008.London:TheStationeryOffice.

19 HMGovernment,2018.Good work plan.

20Black,C.,2019.DameCarolBlack:solvingthewellbeingpuzzle.Blog:PoliticsHome,16February.Availablefrom:Availablefrom:https://www.politicshome.com/news/uk/social-affairs/opinion/british-safety-council/101886/dame-carol-black-solving-wellbeing[AccessedOctober2019]

21 Benach.J.,et al.,2013.Employment, work and health inequalities: a global perspective.Barcelona:IcariaEditorial.

22ONS,2018.Contracts that do not guarantee a minimum number of hours: April 2018,Datarelease.Availablefrom:https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsand workinghours/articles/contracts thatdonotguaranteea minimumnumberofhours/april2018#how-many-no-guaranteed-hours-contracts-nghcs-are-there[AccessedOctober2019]

23OpenDataInstituteLeeds,2019.Employment data explorer: regional variations in self-employment and zero hours contracts. Availablefrom:https://odileeds.org/projects/employment-explorer/?options=true&category=selfEmployment&dataset=total&area=nuts1 [Accessed 23 October2019].

24 HMGovernment,2018.Good work plan.

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25 Johns,M.,Raikes,L.andHunter,J.,2019.Decent work: harnessing the power of local government.London:InstituteforPublicPolicyResearch.Availablefrom:https://www.ippr.org/files/2019-05/decent-work-may19.pdf[AccessedDecember2019]

26 NorthofTyneCombinedAuthority,2019.Proposal for a North of Tyne ‘good work’ business pledge. Availablefrom:https://www.northoftyne-ca.gov.uk/s/Background-Paper-on-Good-Work-Business-Pledge-Final-July-2019.pdf [AccessedNovember2019]

27 Black,C.,2008.Working for a healthier tomorrow: Dame Carol Black’s review of the health of Britain’s working-age population.ReportpresentedtotheSecretaryofState for Health and the Secretary ofStateforWorkandPensions,17March2008.London:TheStationeryOffice.

15. What we know – and what we don’t – about flexible working and productivity

1 Taylor,M.,2017.Good work: The Taylor review of modern working practices.Availablefrom:https://www.gov.uk/government/publications/good-work-the-taylor-review-of-modern-working-practices [AccessedNovember2019].

2 Timewise,2019.The business case for flexible working.Availablefrom:https://timewise.co.uk/article/the-business-case-for-flexible-working [AccessedNovember2019].

3 CharteredInstituteofProfessionalDevelopment,2019.Health and well-being at work.Availablefrom:https://www.cipd.co.uk/Images/health-and-well-being-at-work-2019.v1_tcm18-55881.pdf [Accessed November2019].

4 Timewise,2017.Flexible working: a talent imperative. Availablefrom:https://timewise.co.uk/wp-content/uploads/2019/06/Flexible_working_Talent_Imperative.pdf [Accessed November2019].

5 CharteredInstituteofProfessionalDevelopment,2012.Flexible working provision and uptake.Availablefrom:http://www.ask4flex.org/UK-_Flexible_Working_Survey_Report--CIPD.pdf[AccessedNovember2019].

6 UKCommissionforEmploymentandSkills,2015.Employer Skills Survey 2015: UK Results.Availablefrom:https://www.gov.uk/government/publications/ukces-employer-skills-survey-2015-uk-report [Accessed November2019].

7 CharteredInstituteofProfessionalDevelopment,2019.Health and well-being at work.

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8 HealthandSafetyExecutive,2019.Work-related stress, anxiety or depression statistics in Great Britain, 2019.Availablefrom:https://www.hse.gov.uk/statistics/causdis/stress.pdf[AccessedNovember2019].

9 Unison,2014.Flexible working: making it work.Availablefrom:https://www.unison.org.uk/content/uploads/2014/09/On-line-Catalogue225422.pdf [Accessed November2019].

10 YouGov,2015.30% of UK office workers are more productive when working remotely.Availablefrom:https://yougov.co.uk/topics/politics/articles-reports/2015/10/20/30-uk-office-workers-are-more-productive-when-work[AccessedNovember2019].

11 CranfieldUniversity/WorkingFamilies,2008.Flexible working and performance.Availablefrom:https://www.workingfamilies.org.uk/wp-content/uploads/2014/09/Flexible-Working-Performance-2008.pdf

12 4DayWeek,2019.White paper: The four-day week.Availablefrom:https://4dayweek.com/four-day-week-trial[AccessedNovember2019].

13 TheGuardian,2019.StringofBritishfirmsswitchovertofour-dayworkingweek. The Guardian, 12March(online).Availablefrom:https://www.theguardian.com/world/2019/mar/12/string-of-british-firms-switch-

over-to-four-day-working-week [AccessedNovember2019].

14 Stewart,E.,2019.Can the four day working week work for everyone? Blog:Timewise.Availablefrom:https://timewise.co.uk/article/the-four-day-working-week/ [Accessed November2019].

15 Skidelsky,R.,2019.How to achieve shorter working hours.Availablefrom:https://progressiveeconomyforum.com/wp-content/uploads/2019/08/PEF_Skidelsky_How_to_achieve_shorter_working_hours.pdf [AccessedNovember2019].

16 Timewise,2017.Caring by design.Availablefrom:https://timewise.co.uk/wp-content/uploads/2018/02/1957-Timewise-Caring-by-Design-report-11.pdf [AccessedNovember2019].

17 Timewise,2019.Improving nurses’ work-life balance: insights from a team-based rostering pilot.Availablefrom:https://timewise.co.uk/wp-content/uploads/2019/09/Timewise-Nursing-Report-2019-1.pdf[AccessedNovember2019].

18 Timewise,2019.Building flexibility into secondary schools: how to create part-time and flexible roles that work for teachers and schools.Availablefrom:https://timewise.co.uk/wp-content/uploads/2019/07/Timewise-Now-Teach-Report_2019.pdf[AccessedNovember2019].

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19 Timewise,2016.Modern retail: a nation of part-time shop-keepers?.Availablefrom:https://timewise.co.uk/article/modern-retail-nation-of-part-time-shopkeepers/ [AccessedNovember2019].

16. Finding our edge: engaging employers in the movement to make work better

1 In2012Gallupanalysed263research studies across 192 organisationsin49industriesand34countries.SeeHarter,J.K. et al., 2013. Gallup: the relationship between engagement at work and organizational outcomes.Availablefrom:https://employeeengagement.com/wp-content/uploads/2013/04/2012-Q12-Meta-Analysis-Research-Paper.pdf[AccessedOctober2020].

2 InvestorsinPeople,2019.Job Exodus Trends: 2019 employee sentiment research.Availablefrom:http://www.investorsinpeople.com/wp-content/uploads/2019/06/Job-Exodus-2019-InvestorsInPeople.pdf [Accessed October2019].

3 InvestorsinPeople,2019.Job Exodus Trends.Availablefrom:http://www.investorsinpeople.com/wp-content/uploads/2019/06/Job-Exodus-2019-InvestorsInPeople.pdf [Accessed October2019].

17. Unlocking potential: ways of tapping into employees’ ideas to enhance productivity

1 Thesurveyisseventhinaseriesofnationallyrepresentativesamplesurveysofindividualsinemploymentaged20–60yearsold(althoughthe2006,2012and2017surveysalsosampledthoseaged61–65).In2017,3,306workers(employeesandself-employed)wereinterviewedforaround60minutesintheirownhomes(www.cardiff.ac.uk/ses2017).

2 SeeFelstead,A.,et al., 2018.Productivity in Britain: the workers’ perspective – first findings from the skills and employment survey 2017. London:CentreforLearningandLifeChancesinKnowledgeEconomiesandSocieties,UCLInstituteofEducation.

3 Forexample,Freeman,R.B.andMedoff,J.L.,1984.What do unions do?NewYork,NY:BasicBooks.

4 Forexample,Appelbaum,E.,et al., 2000.Manufacturing advantage: Why High-Performance Work Systems Pay Off, AdministrativeScienceQuarterly,Vol.46,No.4,pp.781-783,2001

5 FinancialReportingCouncil,2018.The UK Corporate Governance Code.London:FinancialReportingCouncil.

https://timewise.co.uk/article/modern-retail-nation-of-part-time-shopkeepers/



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http://www.cardiff.ac.uk/ses2017


6 Reeves,R.,2019.Government’s Industrial Strategy must not shut the door to ‘neglected’ industries. Chair oftheDepartmentforBusiness,Energy and Industrial Strategy, 19March.Availablefrom:https://www.parliament.uk/business/committees/committees-a-z/commons-select/business-energy-industrial-strategy/news-parliament-2017/industrial-strategy-report-published-17-19/ [accessedOctober2019]

18. How can we ensure more workers drive and benefit from productivity gains?

1 InternationalTradeUnionConfederation,2016.Scandal! Inside the global supply chains of 50 top companies. Availablefrom:https://www.ituc-csi.org/IMG/pdf/pdffrontlines_scandal_en-2.pdf [accessedOctober2019]

2 See,forexample,LowPayCommission,2019.A response to the government on one sided flexibility.Availablefrom:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/765193/LPC_Response_to_the_Government_on_one-sided_flexibility.pdf [accessed October 2019]

3 Coyle,D,Making the Future Count, Availablefromhttps://indigo.testudo.goodcaesar.org/wp-

content/uploads/2017/10/making-the-future-count.pdf [accessed December2019][accessedOctober2019]

4 GlobalCommissionontheFutureofWork,2019.Work for a brighter future. Geneva:InternationalLabourOrganization.Availablefrom:https://www.ilo.org/wcmsp5/groups/public/---dgreports/---cabinet/documents/publication/wcms_662410.pdf [accessed October 2019]

5 Belton,P.,2019.Howdoesitfeeltobewatchedatworkallthetime.BBC Business, 12 April. Availablefrom:https://www.bbc.co.uk/news/business-47879798 [accessed October2019]

6 TradesUnionCongress,2018.I’ll be watching you: a report on workplace surveillance. Availablefrom:https://www.tuc.org.uk/research-analysis/reports/ill-be-watching-you [accessed October2019]

7 See,forexample,BBCNews,2018.Uberloseslatestlegalbidoveremploymentrights.BBC News, 19December.Availablefrom:https://www.bbc.co.uk/news/business-46617584 [accessed October2019]

8 OrganisationforEconomicCo-operationandDevelopment(OECD),2019.Facingthefutureofwork:howtomakethebestofcollectivebargaining. In: OECD

https://www.parliament.uk/business/committees/committees-a-z/commons-select/business-energy-industrial-strategy/news-parliament-2017/industrial-strategy-report-published-17-19/







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employment outlook 2019: the future of work.Paris:OECD.Availablefrom:https://www.oecd-ilibrary.org/sites/9ee00155-en/1/2/5/index.html?itemId=/content/publication/9ee00155-en&_csp_=b4640e1ebac05eb1ce93dd e646204a88&itemIGO=oecd& itemContentType=book [accessed October 2019]

9 The research is summarised in Bryson,A.andForth,J.,2017.The added value of trade unions: new analyses for the TUC of the Workplace Employment Relations Surveys 2004 and 2011,London:TradesUnionCongress;andBryson,A.andForth,J.2017.Work/life balance and trade unions: evidence from the Workplace Employment Relations Survey 2011,London:TradesUnionCongress.

10 Askenazy,P.andForth,J.,2016.WorkorganisationandHRM–doescontextmatter?In:T.Amossé,A.Bryson,J.ForthandH.Petit,eds.Comparative workplace employment relations: an analysis of Britain and France.Basingstoke:PalgraveMacmillan.

11 The2011WorkplaceEmploymentRelationsStudy:firstfindings.Availablefrom:https://www.gov.uk/government/publications/the-2011-workplace-employment-relations-study-wers[accessedDecember2019}

12 TheSmithInstitute,2016.The productivity puzzle: a view from employees.London:TheSmithInstitute.

13 EuropeanTradeUnionInstitute,2019.Benchmarking Working Europe 2019.Availablefrom:https://www.etui.org/Publications2/Books/Benchmarking-Working-Europe-2019 [accessedDecember2019]

14 TradesUnionCongress,2019.A stronger voice for workers. Availablefrom:https://www.tuc.org.uk/sites/default/files/2019-09/Astrongervoiceforworkers.pdf [accessed October 2019]

19. Afterword

1 SubmissionbyNancyHey,DirectorofWhatWorksWellbeing,totheCarnegieUKTrust,Sept2017,seehttps://whatworkswellbeing.org/product/job-quality-and-wellbeing/ for more information

https://www.oecd-ilibrary.org/sites/9ee00155-en/1/2/5/index.html?itemId=/content/publication/9ee00155-en&_csp_=b4640e1ebac05eb1ce93dde646204a88&itemIGO=oecd&itemContentType=book







https://www.gov.uk/government/publications/the-2011-workplace-employment-relations-study-wers




https://www.etui.org/Publications2/Books/Benchmarking-Working-Europe-2019




https://www.tuc.org.uk/sites/default/files/2019-09/Astrongervoiceforworkers.pdf



https://whatworkswellbeing.org/product/job-quality-and-wellbeing/

https://whatworkswellbeing.org/product/job-quality-and-wellbeing/

Carnegie UK Trust TheCarnegieUKTrustworkstoimprovethelivesofpeoplethroughouttheUKandIreland,bychangingmindsthroughinfluencingpolicy,andbychanginglivesthroughinnovativepracticeandpartnershipwork.TheCarnegieUKTrustwasestablishedbyScots-AmericanphilanthropistAndrewCarnegiein1913.www.carnegieuktrust.org.uk

ThesecollectedessayswerereviewedandeditedfortheCarnegieUKTrustbyGailIrvine,CarnegieUKTrust,January2020.

CarnegieUnitedKingdomTrustRegisteredCharityNo:SC012799operatingintheUKRegisteredCharityNo:20142957operatinginIrelandIncorporatedbyRoyalCharter1917

http://www.carnegieuktrust.org.uk

can good work solve the productivity puzzle? · 2020-01-15 · the roots of this productivity...

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