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Working smarter gives substantial productivity growth

Working Smarter Works!

13.07.2009

The Hague, 13 July 2009

Productivity growth at companies that are doing something about ‘Working Smarter’ is 9 percent higher than at companies that are not. That is the finding of research conducted by EIM on behalf of the Innovation Platform amongst 650 SMEs (small and medium-sized enterprises) with between 5 and 250 employees. The research also revealed that technological and product innovations are more effective if they are combined with ‘Working Smarter’. The productivity growth at these companies is around 12 percent higher than at companies that only pursue technological innovations.

Alexander Rinnooy Can (a member of the Innovation Platform) says: “We are delighted with the findings of this research. We at the Innovation Platform have been saying for years that working smarter pays off, but everyone was a bit dubious. By ‘Working Smarter’ we mean process and organisational innovations whereby employers and employees work together to achieve a better approach to the work or the production process.” Fellow Innovation Platform member Melek Usta says: “Changes relating to the internal allocation of work and responsibilities and working time management are particularly fruitful. These might be aspects such as task rotation and flexible timetabling.” Alexander Rinnooy Can says: “There are real opportunities here for Dutch business. We estimate on the basis of this research that if 10% of SMEs were to become involved in ‘Working Smarter’, this would have a measurable effect on the total productivity growth in the Netherlands of between 4 and 9 percent extra growth. Current experiences from North Rhine-Westphalia in Germany support this.” Usta says: “And the potential in our country is great, according to the research. 60% of the SMEs have not done anything in the area of ‘Working Smarter’ in recent years. The key to success lies in working together; ‘Working Smarter’ happens through consultation between employer and employee in order to devise and implement innovations. This will also boost profits and turnover.”

The Innovation Platform believes that this is a good time to promote ‘Working Smarter’. The economic recession is forcing businesses to change and re-examine their operating processes, often with the aim of cutting costs and increasing turnover. However the selection, development, retention and optimum deployment of staff remains vital in order to be able to survive in the long term (as a knowledge economy and with a shrinking working population). The Innovation Platform wants to use ´Working Smarter´ to help companies to emerge from the crisis stronger. There are opportunities for this, since EIM’s research shows that the importance attached to social innovation has not diminished as a result of the crisis.

The Innovation Platform wants to establish a joined-up ‘Working Smarter’ programme aimed at SMEs. NCSI (Netherlands Centre for Social Innovation) and Syntens have been asked to draw up an implementation plan. Loek Hermans, chairman of MKB-Nederland and a member of the Syntens board, emphasises the importance of involving a number of sectors in this. “We need to focus on sectors where the potential is greatest.” Anja Jongbloed, member of the board of the FNV Bondgenoten trade union and a member of the NCSI board, notes that employees’ professional skills could be utilised more. “Employees often have a lot of knowledge and experience to help them identify how they can do their work more smartly.”

The steering group supervising the research and this advice consists of Melek Usta (Director of Colourful People, member of the IP), Alexander Rinnooy Can (Chairman of the Social and Economic Council, ember of the IP), Anja Jongbloed (member of the NCSI board, member of the board of FNV Bondgenoten), Loek Hermans (Chairman of MKB Nederland, member of the Syntens Supervisory Board).

For further information about this press release, the research and the Innovation Platform please contact Maria Henneman, 06 11376550, mh@innovatieplatform.nl

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