The age-old debate between HR and CEOs on what truly drives productivity continues. Traditionally, productivity has been measured by cold, hard metrics: output, efficiency, cost-cutting. However, a new wave of thinking is emerging, one that prioritises human well-being as the key to unlocking an organisation’s true potential.
This shift echoed at the recent People Matters TechHR Singapore 2024 conference, where HR leaders discussed the growing disconnect between how they view productivity and how CEOs perceive it. Studies have consistently shown this gap, with HR focusing on fostering positive work environments and employee well-being, while CEOs prioritise results like revenue and profit.
“CEOs often see the organisation as an engine,” explained Manohar M Atreya, CEO & Board Member of Infosys Compaz. “Their focus is on delivering results – the bottom line. That’s what they’re held accountable for.”
Atreya’s engine analogy highlights the CEO’s focus, but Norman Sasono, CTO of DANA Indonesia, argues for a more human-centric approach. Employee well-being and happiness are the fuel that drives that engine.
“We need to go deeper,” Norman continued. “A positive work environment, employee growth, and well-being are the crucial elements that fuel the engine from within.”
Productivity beyond efficiency
Nora Manaf, Group Chief Human Capital Officer of Maybank, called for a more radical shift. “In the past, productivity meant reducing headcount,” she said. “Today, we need a new definition. It’s no longer about maximising output through basic efficiency measures.”
HR, she argued, must move away from treating people as cogs in a machine. “True productivity lies in elevating human performance. It’s about unlocking the untapped potential within our workforce.”
Manaf challenged the audience to embrace innovation as the key driver of productivity, moving beyond traditional metrics.
So how can we bridge this gap between HR and CEO perspectives? Atreya proposed a solution: a holistic understanding of productivity that considers both internal and external factors. People leaders, he argued, must become adept at translating the value of employee well-being into the financial performance language that CEOs understand.
The panellists’ perspectives reflect productivity in the 21st century is not just about efficiency. It’s about fostering innovation, adaptability, and purpose-driven work.
The future of work demands a new definition of productivity. It’s not just about squeezing more output from employees, but about fostering innovation and adaptability, with an approach that prioritises employee and their well-being.