The government is on track to achieving its target number of companies that will implement productivity improvement programs after receiving training from state agencies.
National Wages and Productivity Commission (NWPC) Executive Director Maria Criselda R. Sy told the BusinessMirror that all concerned government agencies were able to exceed the outcome indicator set by the Department of Budget and Management for productivity programs for 2017 and 2018.
“Our target indicator is for 50 percent of the firms that we trained should be able to implement their productivity programs. We were able to exceed this,” Sy said.
She cited the latest Integrated Survey on Labor and Employment (ISLE) of the Philippine Statistics Authority, which indicated that 54.4 percent of the total 32,288 establishments employing 20, or more, workers in 2017 implemented various productivity improvement programs (PIPs).
Info drive
Sy attributed this to the intensified information drive conducted by the government, which increased the awareness of companies about the state’s productivity enhancement programs.
NWPC Deputy Executive Director Jeanette T. Damo said the usual misconception of trainees is that PIPs will lead to the displacement of employees and agencies were able to address this in their information drive.
However, Damo said productivity programs allow companies to expand their operations due to lower cost and better production. This, in turn, she said, will lead to more employment opportunities.
Damo said government agencies usually dispel misconceptions by stressing that the PIPs will translate to a better bottom line for companies.
“It is usually when we mention the impact of productivity programs on their profit and performance that companies show interest in our program,” she said.
Of the said companies with PIPs in the latest ISLE, 20.8 percent, or 6,715, were given technical aid by the NWPC and its regional wage boards.
The Department of Trade and Industry accounted for 2.6 percent of the firms with PIPs, while the Department of Science and Technology accounted for 1.7 percent.
The Development Academy of the Philippines, and the University of the Philippines Institute for Small-Scale Industries only accounted for 0.3 percent and 0.2 percent, respectively.
The top PIPs implemented by firms were the 5S of Good Housekeeping (62.3 percent), Continuous Process Improvement (41.9 percent), Client Satisfaction Measurement (41.2 percent), Total Quality Management (38.4 percent) and Suggestion/Feedback Scheme (30.2 percent).
These programs benefited almost 2.2 million workers by boosting their production, reducing complaints from customers or work-related accidents and illnesses, and minimizing waste.
Challenge
While Sy lauded the large number of micro, small and medium enterprises with PIPs, she expressed concerned over their sustainability, as many of them do not have the corresponding incentive schemes for it.
Only 8,313 of the 17,564 companies with PIPs have gain-sharing schemes, which are usually in the form of cash, but may also be in kind, like gift certificates, grocery items, subsidized leisure trips, electronic gadgets and home appliances.
Without such “motivation strategy,” she said there is a high chance PIPs will not last very long.
“So if they already have a good awareness in implementing productivity programs, we hope they will also have the same interest for incentive scheme to make the programs sustainable for the program,” Sy said.