Productivity is a chronic problem for the Portuguese economy and one of the factors that most harms the country’s competitiveness, particularly vis-à-vis its European partners.
To give you an idea, productivity per working hour in Portugal represents only 65% of the EU average. This requires a major convergence effort in relation to countries such as Germany, France, the Netherlands or Ireland.
It is important to note that our productivity deficit does not result from worker absenteeism or indolence. In Portugal, you even work longer hours than in most European countries. Weak productivity results, rather, from a combination of structural factors: low qualification of the workforce, insufficient incorporation of technology in value chains, reduced investment in innovation, lack of scale in companies, management and efficiency problems and, of course, population aging.
Given this scenario, strategic investments are needed in professional training, talent attraction, digital transition and innovation. An integrated action in these areas will bring, more quickly and effectively, productivity gains to the business fabric.
If we want a more competitive economy and therefore more capable of generating wealth, employment and good wages, increasing productivity must be among the major national goals.
Vocational training seems to be a concept of the past and to be absent from the agenda of the Portuguese economy. But, in fact, training companies remains a priority objective. Qualifying is an effective way of specializing human capital depending on the needs and goals of companies. The skills necessary for greater productivity are thus developed, a decisive factor in creating value for the market without increasing invested capital or labor costs.
Conditions (legislative, tax, financial or other) must therefore be created for companies to promote more qualification actions in the workplace. Furthermore, the country must train, retain and attract highly specialized human resources.
Talent guarantees greater productivity from the outset and, at the same time, equips companies with the skills essential for digitalization and innovation.
Digitalization, in turn, enables gains in internal efficiency, which translate into increased productivity. Innovation, especially in processes, optimizes internal activity and enhances work performance, with an impact on company results. Hence, the scarcity of doctorates in the Portuguese business sector is worrying (less than 10% compared to 40% in the EU).
This leads to the need to invest heavily in company training, particularly using university incentives such as, for example, the Nova SBE VOICE Leadership program.
We must improve labor performance and, simultaneously, accelerate digitalization and the development of innovation. Otherwise, many companies will not be able to create the critical mass that allows them to increase productivity and, therefore, be more competitive in an increasingly innovative economy.