The Aakhya Weekly #71 | In search of the perfect workweek
The Aakhya Weekly #71 | In search of the perfect workweek
Embarking on India's Odyssey to Boosting Productivity: Beyond the Ticking Clock
By Sakshi Satija
The age-old belief that "the longer you toil, the more you achieve" has ignited a spirited debate, fueled by the clarion call of Infosys Chairman N.R. Narayana Murthy, who urged India's youth to embrace the Herculean 70-hour workweek.
This comment set off a firestorm of controversy, with critics arguing that evaluating work primarily based on hours, rather than the actual results achieved, is a futile endeavor. After all, productivity should not be a slave to the clock. This is so, as the incessant grind of an unnecessarily long workday often drains motivation and discourages dedicated effort. People should be empowered to work efficiently and enjoy a fulfilling personal life. Yet, there have been supporters of Mr. Murthy's stance, leaders of companies like Ola and JSW Group insist that India's growth demands an extra dose of dedication, including long hours. They argue that India's unique circumstances require a work culture distinct from that of developed nations.
To engage in meaningful discussions about labor productivity, it is crucial to unravel the concept and confront the factors hindering India's journey towards optimal labor productivity.
Unlocking the secrets of labour productivity
At its heart, labor productivity measures how effectively labour inputs are transformed into outputs – the tangible fruits of labor. At a national level, labour productivity is often quantified as GDP per hour worked. However, misconceptions abound when people equate labor productivity solely with the number of hours worked. In reality, labour productivity is the result of investments in human resource planning, recruitment, and employee development.
India currently finds itself at the 131st spot in GDP per hour worked, highlighting the urgent need to enhance productivity on its path to becoming the world's third-largest economy by 2030. This vision has allowed business leaders to evoke the Indians’ nationalism by calling upon them to work longer in their service, so the country can fulfil its ambition, and they can reap the benefits of employees toiling through the day.
The paradox: India’s unyielding work ethic vs. the productivity puzzle
Despite Indians working an average of 48 hours per week and ranking among the most hardworking globally, India's labor productivity lags behind, plagued by historical factors. Hindered by delayed economic liberalization, India faced limitations in accessing cutting-edge technology, foreign investments, and large-scale corporations. Consequently, a significant portion of India's workforce remains ensnared in low-productivity sectors, such as agriculture, the informal economy, or small businesses offering meager wages.
It is imperative to dispel the notion that extended work hours are the magic wand for enhancing productivity.
Balancing Act: the workweek dilemma
The debate over the ideal workweek length arises from concerns about excessive workplace stress and the dearth of personal time, kindling the call for reduced working hours. On the other end of the spectrum, employers often resist such demands, fearing that shorter hours might lead to reduced daily output, driven by the prevailing belief that more hours equate to greater productivity.
‘Ironically’, companies grapple with the question of whether there's a compelling business case for shorter workweeks….?
Parkinson's Law suggests that work expands to fill the time allotted. When individuals realize that their time is limited, they tend to focus more intently, yielding superior results. This realization prompts people to streamline meetings and reduce breaks, boosting productivity within the available time frame. Reduced working hours can, in fact, enhance productivity by leveraging heightened energy levels, reduced stress about balancing personal life, more efficient scheduling, and a greater appreciation for the workplace. Nevertheless, a UK study found that employees working up to an additional 10 hours per week with more control over their work reported higher satisfaction levels than those adhering to standard hours or working excessive overtime. Some sectors, such as logistics and healthcare, require extended employee availability, making a blanket reduction in work hours impractical.
Strategic interventions on the quest for productivity
To ascend to the ranks of high-productivity nations, India must become more competitive by optimizing its labor force and other assets to create value. Key measures to boost productivity in India include a steadfast focus on manufacturing, labor mobilization, and fostering innovation. India has already placed manufacturing at the forefront through its "Make in India" initiative.
The second measure, labor mobilization, revolves around enabling a more diverse demographic to participate in the workforce. In India, only 24% of women are actively employed, a glaring underrepresentation with significant economic implications. The potential for substantial GDP growth, estimated at 27%, emerges if India can equalize female workforce participation with that of men. As women tend to be more risk-averse and less competitive compared to men, they can bring a balanced perspective to decision-making. Greater representation of women in banking supervision has been associated with increased financial stability.
Finally, it's worth noting that the top 10 countries in the World Economic Forum's Global Competitiveness Index (GCI) excel in the "innovation" parameter. Compared to human capital and physical infrastructure, India stands to gain the most from investments in innovation, encompassing research, development, and technology adoption. These investments empower the workforce to enhance process efficiency, customize products to meet domestic consumer needs, and introduce homegrown products to the global market, solidifying India's position on the path to heightened productivity and economic growth.
Is the future as ‘productive’ for India as the workforce?
India's aspiration to become the world's third-largest economy by 2030 is an exciting journey filled with potential. For India's long-term economic prospects, substantial investments in manufacturing, infrastructure, and services will be pivotal drivers, provided the government lays the groundwork with favorable policies. Beyond government actions, other stakeholders can focus on initiatives that enhance labor productivity, such as entrepreneurship and technological adoption, recognizing that the emphasis on work hours alone may not be the ultimate solution.
India has the capacity to enhance labor productivity and become a global economic powerhouse, but it must address the challenges of an improved work-life balance. With a concerted effort by government, businesses, and society as a whole, India can unlock the full potential of its labor force, driving economic growth and prosperity for the nation and its people.
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