NEWS

WIRES

OTHER

New Proudfoot Study Shows Americans Working Longer Hours Than at Any Time Since 1973

Study Cites Long Hours -- Not Greater Efficiency -- as Cause of U.S. Productivity

Proudfoot Consulting announced today the findings of its annual productivity study, which shows that the historically high productivity rating achieved by the U.S. compared to other countries is driven by longer work hours, not greater efficiency.

According to Proudfoot Consulting's study, entitled "Managing for Mediocrity," the U.S. is tied with Germany for most efficient labor force, with 64% of available time spent productively. However, when the longer American work day and shorter annual vacation time is factored in, U.S. productivity lags behind Germany and France. Measured as Gross Domestic Product (GDP) per actual hours worked, France is the most productive country.

"Americans are working more hours per year than at any time since 1973," said Tom Long, North American president of Proudfoot Consulting. "This is driven by heavy reliance on overtime to achieve increased output, and aggravated by insufficient planning and supervision. With Europe's move to legislate a longer work week and the backlash against overtime here in the U.S., American companies are now feeling real pressure to improve management efficiency and find alternate solutions."

Proudfoot's findings are based on analysis of more than 1,600 detailed studies representing more than 10,000 hours of work at client projects in Australia, Austria, France, Germany, Hungary, South Africa, Spain, the UK, and the U.S.

Hidden Opportunities to Trim Overtime by 10 Percent

According to the study, the top three barriers to productivity are:

--  insufficient management planning and control
--  inadequate supervision
--  ineffective communications
    

Together these factors account for 81 percent of all lost time. Proudfoot estimates that if companies took advantage of these hidden opportunities to improve workforce productivity by as little as 10 percent, organizations could reduce employee overtime without affecting output.

In an accompanying Gallup poll commissioned by Proudfoot, most senior executives in U.S. companies see poor management as the biggest cause of lost time, yet 75 percent of them feel they need to make capital expenditures to address the problem.

"It is interesting that most managers believe they need to acquire more machinery or new technology when the evidence clearly points to insufficient management and communication as the root problem," said Long. "The survey reinforces what Proudfoot has discovered from working on more than 16,000 client projects -- changes in behavior and processes can increase productivity, reduce overtime, and provide an immediate and sustainable positive impact."

About Proudfoot

Proudfoot Consulting is one of the world's leading and longest established providers of management consultancy services. In over 55 years and through more than 16,000 assignments, Proudfoot has consistently remained an effective, practical resource for organizations seeking superior operational and financial performance. For additional information about Proudfoot click to: http://www.proudfootconsulting.com.