Newsletter
October 2018 Newsletter
Efficiency is important in the productivity equation
In any business, understanding the importance of efficiency in your workplace will result in an increase in your overall productivity. According to Professor Andrew Conway, IPA Chief Executive Officer “productivity and efficiency go hand in hand and both need a boost” so that we can maintain a standard of living in Australia”.
On average the recorded level of efficiency and productivity for Australian businesses is currently at 0.81% (the median level is normally at 0.85%). This figure provides implications to business owners, as the level of productivity in their businesses can increase by approximately 15% - 19% using the same amount of labour and capital.
Currently the business sectors with the lowest rate of efficiency and productivity are:
• Mining
• Electricity and Gas
• Manufacturing
There are a range of efficiency and productivity tips for businesses of all types to benefit from, which include:
• Encouraging business start-ups to implement efficient and dynamic resource allocation to benefit their business
• Introducing initiatives to workers
• Introducing supply-chain initiatives
Source - Read the full article at Public Accountants here: http://www.pubacct.org.au/news/efficiency-important-productivity-equation