Last year, a report conducted by Oxford Economics into paid time off in the US presented evidence that productivity rates amongst workers who took paid time off were more productive than those that did not. The survey conducted found that there was a significant rate of increase in productivity both before and after leave was taken, the former perhaps driven by a need to meet deadlines, and the latter suggesting that workers felt refreshed and with a better attitude from their return. Figure 1: Impact of time off on productivity Source: Oxford Economics assessment of paid time off in the US” 2014. “An There is growing research into the value of a good work/life balance, and this is why many organisations are now investing large amounts of money into programs that encourage employees to manage their various commitments. “Work- life balance feeds passion for the workplace and contributes to a better overall work environment and morale. When there is separation of…personal and professional life, employees feel more appreciated. In turn, they are happier, more committed, more productive, and therefore will likely stay with the company for a longer period of time.” Charles Hobson and colleagues list the risk factors for workers who struggle to balance busy work schedules with other commitments as: Higher of absenteeism and turnover Reduced productivity Decreased job satisfaction Lower levels of organisational commitment and loyalty Rising healthcare costs Moreover, research into work-life balance has shown that the introduction of new public holidays is likely to lead to a small increase in health and a drop in absenteeism. Finally, OECD data indicates that Australia has a relatively high level of productivity yet is on the lower end of the scale of total average hours worked per year. This data has been the focus of a New Zealand Productivity Commission report into declining productivity in that country, which compares Australia and New Zealand’s similar employment growth with the divergence of our productivity growth. Figure 2: Growth in GDP and hours worked, Australia vs. New Zealand Source: New Zealand Productivity Commission, by the numbers: The New Zealand experience: Commission Research Paper,’ ‘Productivity September 2013. it is important not to conflate correlation with causation in terms of total hours worked and its relation to overall productivity, the story is compelling all the same. Figure 3: Hours worked, total, hours/worker, 2013 Source: OECD 2015.
Last year, a report conducted by Oxford Economics into paid time off in the US presented evidence that productivity rates amongst workers who took paid time off were more productive than those that did not. The survey conducted found that there was a significant rate of increase in productivity both before and after leave was taken, the former perhaps driven by a need to meet deadlines, and the latter suggesting that workers felt refreshed and with a better attitude from their return. Figure 1: Impact of time off on productivity Source: Oxford Economics “An assessment of paid time off in the US” 2014. There is growing research into the value of a good work/life balance, and this is why many organisations are now investing large amounts of money into programs that encourage employees to manage their various commitments. “Work- life balance feeds passion for the workplace and contributes to a better overall work environment and morale. When there is separation of…personal and professional life, employees feel more appreciated. In turn, they are happier, more committed, more productive, and therefore will likely stay with the company for a longer period of time.” Charles Hobson and colleagues list the risk factors for workers who struggle to balance busy work schedules with other commitments as: Higher of absenteeism and turnover Reduced productivity Decreased job satisfaction Lower levels of organisational commitment and loyalty Rising healthcare costs Moreover, research into work-life balance has shown that the introduction of new public holidays is likely to lead to a small increase in health and a drop in absenteeism. Finally, OECD data indicates that Australia has a relatively high level of productivity yet is on the lower end of the scale of total average hours worked per year. This data has been the focus of a New Zealand Productivity Commission report into declining productivity in that country, which compares Australia and New Zealand’s similar employment growth with the divergence of our productivity growth. Figure 2: Growth in GDP and hours worked, Australia vs. New Zealand Source: New Zealand Productivity Commission, ‘Productivity by the numbers: The New Zealand experience: Commission Research Paper,’ September 2013. it is important not to conflate correlation with causation in terms of total hours worked and its relation to overall productivity, the story is compelling all the same. Figure 3: Hours worked, total, hours/worker, 2013 Source: OECD 2015.