Is the economy impacting productivity? How can HR stop it being a hindrance?

Employee productivity always takes on a greater significance during difficult times. While it may not be something that is on the minds of HR executives every day ordinarily, during a recession it is quite a different story. And while its obvious that even the hardest worker is likely to have the odd day where he feels less productive than usual, it is believed the current economic climate could be having a massive impact on productivity.

For HR professionals specifically, the biggest challenge comes from having to do more with less. As organizations across the nation battle with lost profits and cut backs, HR departments run the risk of increasingly scrutinising their workforce.

Then again its easy to understand how productivity can suffer in a recession. Amidst multiple layoffs, a lack of job security and the fact that many employees are having to work longer hours to get the job done, its no wonder so many people are complaining of feeling deflated about the job in hand. We all enjoy some good news now and then, and for many workers its hard to remember when the last bit of good news came.

A study from the Corporate Executive Board backs this theory up. According to the CEB there has been a substantial decline in employee engagement, which has resulted in as much as a five percent reduction in employee productivity. The fact is, the recession has dampened the mood of many workers and we all know that a depressed worker often equates to a poor worker.

But, before we call in the morale high ground, there are some bright spots. According to a recent report by the Department of Labor earlier, US productivity - here defined as a measure of how much an employee produces for each hour worked - has risen at its fastest annual pace for nearly six years for the second quarter of 2009.

Oftentimes, it is the fear of the unknown that comes hand-in-hand with a recession and that can breed uncertainty among employees, which can then lead to a lack of productivity. Perhaps then, instead of hiding behind closed doors, HR professionals need to tackle the issue of the recession head-on and talk to their employees: after all, its well known that open communication works both ways.

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