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Are Indian employees getting more productive?
Feb 27, 2013

As pressure mounts on economic growth and corporate profitability, companies try to extract the most from available resources. Needless to say employee productivity, which is most scalable, assumes importance. As economic cycle turns, so does the impact of employee productivity on profits. Most companies these days prefer to hire during a downturn, so that they can obtain maximum value from human resources during recovery. Plus the hiring fetches best talent at reasonable costs. As seen in the chart, China and India witnessed the maximum improvement in employee productivity in 2012. The change in GDP per person employed year on year for India and China was several times that in developed nations like the US and even developing ones like Brazil and Russia. The secret to this is demographic dividend. A large population of young and employable citizens helped India and China prepare better for the economic recovery. The challenge, however, will be to retain the productivity and profitability.

Data source: The Economist

This Chart Of The Day was published in The 5 Minute WrapUp - A much needed reform in mutual fund industry

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