New data from the Bureau of Labor Statistics shows that productivity plunged during the first half of 2022, down by the sharpest rate since the 1940s. Quoting the Washington Post:
The productivity plunge is perplexing, because productivity took off to levelsnot seen in decades when the coronavirus forced an overnight switch to remote work, leading some economists to suggest that the pandemic might spark longer-term growth. It also raises new questions about the shift to hybrid schedules and remote work, as employees have made the case that flexibility helped them work more efficiently. And it comes at a time when “quiet quitting” — doing only what’s expected and no more — is resonating, especially with younger workers.
Productivity is strong in manufacturing, but it’s down elsewhere in the private sector, according to Diego Comin, professor of economics at Dartmouth College. He noted that productivity is particularly tricky to gauge for knowledge workers, whose contributions aren’t as easy to measure.
And here’s an essential item – economists aren’t sure why.
Now, I want to throw in another data point from a survey by Digital.com. 75% of workers say they want to stay home with their pets instead of going into the office.
Why do we care?
Bosses everywhere should be thinking about the state of play in their organizations. First, assuming constantly rising productivity will “just happen” is losing control over your business. Growth is intentional is what we’re told over and over. An increase of productivity needs to be intentional too.
I’m convinced the lesson is that underlying cultural shifts are causing this change. Humans, as whole people, are making different choices post-pandemic. This is common after a collective trauma; a more straightforward example might be war.
Regardless of your opinion of “bringing your whole self to work,” managers should consider that factors outside the scope of just work often impact employee behavior. That’s why that data point about pets stands out. When considering them as humans, employees making decisions about their priorities include more than just their priorities at work.
My colleagues and I discuss this on the upcoming episode of Killing IT, too – if you want to talk more about theories. Plus, this weekend’s bonus episode talks with an owner who is very intentional about culture in his IT services business.