When a worker’s productivity increases, production costs and services increase. However, this statement must be the opposite: when a worker’s productivity increases, it should lower the costs of production and services. But, in a recent analysis, there has been an increase in productivity as well as production costs.
However, each worker’s productivity increases every year, but costs of services and production do not reduce with it but increase. In this scenario, advancement in technology plays a crucial role. Technology is developed to help humans and increase their work efficiency as well as productivity.
Companies aim to enhance the efficiency of their assets, boost worker productivity, minimize overhead and production expenses, and optimize after-market service through digital means, ultimately leading to measurable advantages beyond just cost reduction.#DayoSpeaks pic.twitter.com/h1uXRYu54X
— Dream Achievers K (@DreamAchieversk) August 18, 2023
To make a significant increase in the economy, production costs must be reduced while the amount of worker productivity must be increased, and executing this plan is an art, which is mostly in upper-level management’s hands. Their strategies can either drive more profit to the company and benefit the workers’ productivity and efficiency as well by providing them with higher wages or they can simply try to make themselves wealthier by increasing both worker productivity and production costs, which shouldn’t be a concept for a rising economy as one aspect must be lowered to make an increment in the more valued factor of the economy.
Ok, firms adding extra production capacity(hiring new worker) to lower the marginal cost at the new quantity produced (part of the cost curve that increase exponentially because it is reaching its output limit)
— Bob Pi (@BobPi281836) June 11, 2024
The amount of cost saved equals to higher productivity.
Norway Post say their environmentally-friendly delivery vehicles have led to a 25% increase in worker productivity & 40% drop in the service’s CO2 footprint in Oslo. Also, Iove the term 'nest' for a consolidation hub https://t.co/ovY3DRcq0R
— Becky Fuller (@BeckyJFuller) November 5, 2019
When workers get enough appreciation and technologies to work with, their efficiency and productivity increase. However, there comes another factor that can increase or decrease the worker productivity rate and it is the number of working hours. Employees in the US complete 5 days of work in 4 days. Hence, they increased their working hours, but does the increase in working hours mean increased productivity?
Bernie Sanders, a US senator made his point incredibly clear that worker safety and productivity are extremely important and both can be balanced by providing them a healthy working management. According to an analysis, employees who work four days a week are more productive than employees, who work five days a week and it is simply because increasing the working hours puts more pressure on employees’ mental and physical health, resulting in exhaustion and frustration more often whereas lesser working hours and giving enough time to worker to settle down their work stress can help them stay motivated every Monday when they come to work.
Further, increased worker productivity does not always benefit them as much as it does the top management and this is another factor, which is why workers don’t grow as much as their top-level managers.
With huge increases in technology and worker productivity, who is going to benefit?
— Bernie Sanders (@BernieSanders) March 22, 2024
Are the billionaires going to gain even more wealth? Or will we finally stand with working people and move toward a 32-hour workweek with no loss of pay? pic.twitter.com/AYwlmWgWOT
Moving on, workers have to do the same jobs in different countries for different paychecks, which is a precise reason that affects the economy of different countries. Along with technological advancements, the factor that increased worker productivity demands is the wellness of employees, so they can work more and better.
“For example, with the same productivity to produce output valued at US$1,000 (RM4,673.80), a worker in Malaysia is paid US$340, while in comparable countries, a worker is paid US$510.80."
— Datuk Jahat Hensem (@datukhensem) February 17, 2024
Siapa ada data paling latest? pic.twitter.com/HL95W7n9yb
Wages significantly affect the labor productivity rate of workers. When workers increase their productivity rate, they are supposed to be paid more. When workers are paid more, the need for capital increases, however, the profit doesn’t get affected by this as the productivity is also increased.
However, industries prefer to increase production costs and services as well for more increment without facing any losses in the outcome that primarily do not affect their economy but consumers need to pay more for increased prices for the same quality.
Even though technology is the factor that can significantly lead to increased worker productivity, it is also the reason for increased production costs and services, it serves as a great disguise, which primarily shows the advantages of increased worker productivity due to technology and hides the shortcomings.
First, what is productivity growth? When more output is produced with same amount of inputs, or output per worker per hour worked etc is one way to think about it. In other words, technology. Technology is the most powerful catalyst that can increase impact price and output. pic.twitter.com/AaCGuf1oRd
— Jeff Park (@dgt10011) April 12, 2024
Nevertheless, this fact can’t be denied that advancement in technology has a great impact on increased worker productivity rate. For example, the modern hype is about AI, Artificial Intelligence is growing rapidly and has developed a fear among people that it will take over human jobs, which won’t affect productivity rate but affect the human jobs. However, it’s a misconception among people.
AI won’t take your job but the person who understands AI can definitely will.
Narayani Bhardwaj
The technology is running fast, so the workforce has to run fast to match the steps with it as well. Even though AI can write about academic information, the insights that audiences search for are always humans’. It means AI is a good technological tool to give the workers enough time to work on the things that are more valued and productive.
As per many analyses, it has been seen that AI has increased the worker productivity rate with its assistance.
AI Won’t Take Your Jobs.
— John Rush (@johnrushx) April 15, 2024
When productivity increases, we come up with new ideas, opportunities and problems to solve .
However this also means every single desk job worker will have to re-learn the skills to adapt to be relevant.
Future is bright, for those who learn fast. pic.twitter.com/XZj6nJG9ZG
MIT & Stanford did some research and found that:
— Rep AI (@TeamRepAI) August 22, 2023
AI assistance increases worker productivity, resulting in a 13.8 percent increase in the number of chats that an agent is able to successfully resolve per hour.
Change isn't coming. It's here.
More here: https://t.co/18xJBXaC9J pic.twitter.com/R4B56mawR0
Last Updated on by Icy Tales Team
