CIPD urges productivity focus for government's upcoming Budget
The professional association for human resource management professionals called the Chartered Institute of Personnel and Development – or, in shorthand, as CIPD – has urged the government to announce policies that can drive up the country’s productivity levels and so revitalise its economy. To be more precise, the body has urged the Chancellor of the Exchequer, George Osborne, to announce many productivity-encouraging policies including reconsidering skills policy and investing in careers services when he gives his 2014 Budget to Parliament.
Policies to avoid “a generation of wasted talent“
Though the HR recruitment agency Elite HR has been helping to boost the UK economy through assisting with the effective filling in of HR jobs in Surrey, Southampton and Portsmouth, CIPD’s Chief Executive, Peter Cheese, has said that the Budget to be announced on 19 March should pledge an injection of £50 million to the National Careers Service and a thorough review of government skills policy. These policies will, according to Cheese, “ensure we don’t create a generation of wasted talent”.
Startling statistics shed light on productivity issue to address
The Office for National Statistics recently conducted research which revealed that the UK’s problem with productivity is largely due to how the country uses skills. Work productivity fell dramatically during 2008/09 as the recession took hold and it is still almost 4% beneath its level before the recession. Furthermore, in 2012, UK productivity was, on an output per worker basis, 19% beneath the average for the rest of the G7 countries, which include the United States, France and Japan. Data from the Office revealed the most recent number of unemployed young people to be just beneath 920,000.
The CIPD calls for action
The CIPD considers the above mentioned number of unemployed young people to have been influenced by the UK’s mismatch between particular skills and particular work. Cheese declared that the recession had “exposed critical underlying issues” in the country’s competitiveness and use of skills and that “It’s important that government, key policy makers and businesses come together to work on improving the UK’s productivity, where poor relative performance predates this financial crisis”. The Institute has also demanded the creation of a Workplace Commission that can unite key government and business stakeholders with employees and their representatives. Cheese claimed that such a body “would help shape policy and promote practices for improving productivity and work opportunities and contribute to better work and working lives for all”.