Brexit - a chance for you to improve your business productivity?
Although Brexit is a source of ambiguity for British businesses, it is also a chance to improve productivity. This is according to the chief executive of Bruntwood, one of Britain’s largest portfolios of science and technology parks. Mr Oglesby is behind a plan that uses the restrictions on immigration as an opportunity to grow his business.
So what is the productivity situation in the UK today and what are the ideas to improve it?
UK workers in need of a boost as productivity is at all time low
According to a recent report from the Office for National Statistics, economic output per hour of work dropped in the UK by 0.4% in the first quarter after a rise of 0.6% in the final quarter of 2017. The rate of UK business growth continues to lag behind levels achieved before the 2008 financial crisis and is in dire need of a boost.
To help improve business growth, economists believe businesses should focus on increasing worker efficiency through training programmes. By investing in staff development, companies will be able to generate more profit from their own workforce, which will enable businesses to pay higher wages.
Improving productivity by making low-paid jobs more rewarding
As Brexit forces Britain to gain more control of our immigration, low-paid jobs will need to be made more attractive. Mr Oglesby suggests that British businesses use new restrictions on immigration as an opportunity to make low-paid jobs more rewarding.
“While I was firmly in the Remain camp, I do see one of the big by-products of getting control of our immigration as forcing business to improve productivity and make those poorly paid jobs more rewarding in every way.” says Mr Oglesby when interviewed about the impacts of Brexit on his business.
In October Mr Oglesby set up Bruntwood Scitech with Legal & General, which aims to create a £1.8 billion network of science and technology centres in regional cities. With this initiative, the company will help to establish apprenticeship programmes and provide start-ups Therefore investing in growing the UK economy from the inside.
But are apprenticeships the answer to increased business productivity? The government certainly thinks so.
Government funding to improve business productivity
The chancellor, Phillip Hammond and business secretary, Greg Clarks consider a boost to productivity as one of their top targets in government. So as part of the Autumn budget, Hammond is helping to drive apprenticeship programmes through government funding.
By setting up rewarding apprenticeship programmes and investing in people, British businesses can help to drive success and sustainability.
Another way the government is supporting business growth is through research and development tax reliefs. To find out how to make the most of this funding, read our article.