Spain must do more than just regret the situation of the labor market, because since the eighties the sum of problems in the labor market persists, when the economy grows the unemployment rate decreases very little, but if a situation occurs adverse, employment suffers greatly.
The Spanish labor market is dual, well-paid workers coexist with precarious workers. Added to the above is a problem of territorial distribution, with more unemployment in certain areas of the country.
It also registers a qualification problem that makes many people unable to find a job appropriate to their training, skills and knowledge, and that it is difficult for companies to find suitable workers. Paradoxically, and despite the increase in the average academic training of the working-age population, the Bank of Spain says that “there are doubts about the specific skills that qualified workers possess, learned both in their training stage and in their previous experience , are consistent with the defendants. What is being taught then?
What is serious about this “underused capacity” is that it affects many people who could contribute to the system in contributions and personal income tax, but who do not find a job.
If we go to the core of the labor market problem, it can be seen that low productivity (the quotient between the amount of resources used and the production achieved) and its countercyclical behavior is a structural weakness of our economy.
In 1995, the real gross added value (GVA) was 27 euros per hour worked in Spain, 14% less than in Europe, a difference that has widened to around 22%.
The accumulation of human capital is one of the three components of productivity, and if it is observed from a sociological rather than an economic perspective, absenteeism appears as one of its greatest enemies.
The hours lost in Spain are equivalent to 753,000 employees not going to work for a year, at a cost to companies of 6,900 million. More difficult to quantify, but very harmful, is the so-called “face-to-face absenteeism” when the worker goes to the job, but dissatisfied, dedicates part of his time to performing tasks that are not typical of his work activity, and / or shows Voluntary attitude below your possibilities or potential.
96% of employees believe that, if they were happier in their work, understanding such a good work environment, job stability, personal fulfillment and the development of their skills, they would perform more, according to Adecco data, and although the Salary is the main reason for the change of company, one in four people are tied to their job to fulfill their obligations or because of the good salary they have.
Definitely, dissatisfaction at work translates into a lack of productivity. William Ouchi, professor of business management, invented Theory Z in 1981 to improve the productivity of a company. Ouchi demonstrated that there is a close relationship between the degree of satisfaction of people and productivity, so that, the more integrated, valued and taken into account a person feels in their work, the greater the motivation and their efficiency so that they business goals are achieved. The reason for the greatest job dissatisfaction is poorly structured and unplanned management. This is followed by the lack of response or “feedback”, the lack of agility and performance of the support areas and, finally, the bureaucracy.
The first three factors are a consequence of the methods used by company leaders and of poor and instrumental internal and external communication. Since this is common to most companies, the productivity of the economy as a whole suffers.
As long as this form of management is not transformed, the structural problem of low productivity, low wages, less consumption, less attractiveness to invest and the fear of hiring for the same reason, low productivity will not change either.
Carlos Balado is CEO of Eurocofin