Productivity as an articulator of a new social contract

It could be thought that due to the political and social uncertainty facing the country, the outlook for companies is completely uncertain. Contraction of investments, slowdown in sales, growing indebtedness, less cash and legal uncertainties, in addition to structural gaps.

This has been seen in negative financial results presented at the CMF and in work and construction postponements. This is added to the growing pressure that companies and people with higher incomes finance social costs in Chile, which is noted by how steps have been taken for pension withdrawals and tax reform.

However, an essential effort must be made, reconciling the economic and social balance, without producing a greater decoupling.  One option that takes precedence in the scenario described is to see the productivity of companies and organizations as a key element in the articulation of a new social contract. This takes on a different strategic importance and is probably "the" way that we have not found as a country to give the backs that the current challenging context demands. 

Indeed, it is a spearhead to optimize returns for the benefit not only of companies, but also, for the benefit of the workers themselves, with increases in wages, which may indeed be possible.

There is room for improvement, knowing how to maneuver correctly. Therefore, productivity and business growth continue to be the appropriate strategic response to maintain operations with healthy economic balances.

There are current methodologies in the market that together with the workers manage to increase physical and financial productivity between 20 and 40%, to get out of the stagnation and in a sustainable way, with the current resources and the human team itself. The countries with better productivity indices also have better inequality indices, looking at the GINI indicator, and the average wages of their workers. Productivity is an articulator of a new social contract. It is up to us to make that a reality.

Francisco Ortuzar

Orca Business Consulting Partner

Original Text in Cooperative