OPTIMISING EMPLOYEE PRODUCTIVITY: HR STRATEGY FOR ECONOMIC GROWTH

Abstract

The strategic role of optimising employee productivity in promoting economic growth refers to the significance of systematic efforts to improve the efficiency and effectiveness of the workforce in its contribution to economic expansion. The concept emphasises that by increasing output per employee through various methods such as training, skills development, technology implementation and work process improvement, companies not only increase their own profitability, but also contribute to an increase in national productivity. This, in turn, promotes economic growth through increased industrial competitiveness, greater innovation, more efficient use of resources, and the creation of higher added value in the production chain. As such, optimising employee productivity acts as a catalyst linking improvements at the micro (firm) level with macroeconomic benefits, making it a key component in a sustainable economic development strategy. The results show that the implementation of effective HR strategies, such as skills development programmes, technology integration, work process improvements, and the creation of a supportive work environment, are positively correlated with increased employee productivity. Furthermore, these productivity improvements are shown to have a multiplier effect on economic growth through increased company competitiveness, job creation, and increased innovation. In conclusion, optimising employee productivity is a critical component in long-term economic growth strategies, emphasising the importance of continuous investment in human capital development for firms and policymakers.