Australia is working harder than ever, yet producing less. Productivity Commission shows that despite employees logging record-high hours, national productivity has slipped back to pre-COVID levels, entering a ‘productivity loss’ phase.
For organisations, achieving sustainable performance requires balancing efficiency with employee value creation. This requires proactive HR leadership to understand the human levers of productivity and direct investment towards enabling people to do their most valuable work. Ultimately, the leaders of tomorrow will be those who understand that productivity is a human achievement, strengthened by automation but powered by people.
The Missing Half of Productivity: Value Creation
Many organisations invest heavily in automation, AI tools and process redesign with the expectation that efficiency will lift productivity. Yet, where every workplace can generate infinite quantities of output, value creators become the true differentiators.
Value creators shift productivity from ‘more output’ to more intelligent output. They are driven by:
- Value measured in terms of quality, innovation and impact
- Workers equipped with future-focused skills
- Human capability and creativity, supported by human-machine collaboration
As routine tasks become increasingly automated, true productivity is an organisation’s ability to turn insight and innovation into sustained value.
HR Must Lead the Productivity Agenda
HR leaders sit at the intersection of capability, culture, workforce design and technology adoption, the critical levers that determine whether productivity gains materialise. According to Gartner, when HR is directly involved in productivity initiatives, employee productivity increases by an average of 11%.
1. Aligning Leadership on What Productivity Means
HR can guide leadership to reframe productivity to include value-generating activities such as creativity, influence, and strategic thinking, rather than over-focusing on efficiency.
2. Equipping Managers to Coach for Value
By coaching for value, and shifting focus from task completion to impact-driven leadership, HR enables managers to delegate low-value tasks and empower employees to concentrate on nurturing value creation.
3. Ensuring Workforce Capabilities Are in Place
To ensure people and technology can work in complementary ways, HR is uniquely positioned to build workforce digital and analytical capability, ensuring employees understand how to redirect automation tools into meaningful work.
HR-Led Productivity: The Lee Health Approach
Organisations around the world are adopting new governance structures that position HR as a strategic productivity partner.
US healthcare organisation Lee Health created specific groups, made up of SMEs and representatives of frontline works, to stress-test productivity initiatives without compromising patient safety standards.
- At the strategic level, senior leaders from all major functions, led by the CHRO and Chief Nursing Officer, identified system-wide productivity opportunities such as optimising bed usage and streamlining care pathways.
- At the operational level, HR business partners, nurse unit leaders and finance managers assessed these ideas against real clinical conditions, refining or challenging them where needed to protect patient safety and standards.
Lee Health underscores a central truth: sustainable productivity stems from integrating enterprise strategy with the behavioural, cultural and operational dynamics of the workforce.
The Way Forward
Leaders who prioritise value over volume will define the next generation of high-performing workplaces. Improving productivity is no longer about asking employees to work harder or faster. It’s about directing effort where it matters most, where human capability meets organisational value.
At Circle Recruitment & HR, we support organisations to build the people strategies, leadership capability and workforce confidence needed to thrive in this new productivity landscape.
Important Note: These articles have been prepared for general circulation and are circulated for general informational purposes only; these articles should not be regarded as business or investment advice. The articles represent the views of the writers and are subject to change without notice. Additionally, while every care has been taken in the preparation of the articles no representation or warranty as to accuracy or completeness of any statement is given. An individual or organisation should, before any business or investment decision is made, consider the appropriateness of the information in this document, and seek professional advice, having regard to objectives, situation and needs. This document is solely for the use of the party to whom it is provided.