Saturday, 11 July 2015

Greek lessons

If Greece is forced out of either the Euro, the EU or both - there are clear implications for theGreek economy. But will there be any implications for underlying productivity.

Well, there is some evidence - ironically from Greece itself - that national confidence and national pride do have a significant impact on the productivity of workers.

When Athens hosted the Olympics in 2004, there was a surge of national pride and of 'engagement' of the workforce with their country.   This resulted in both a sense of well-being for the workers and in a boost to the economy.

This suggests, unfortunately, that  exit from the Euro might have a negative effect on productivity and the economy - perhaps resulting in a kind of 'vicious spiral' of decline in the economy and national confidence.

Dos this matter for you?  Well, assuming you don't have significant trade with Greece or investments in Geek companies, it may not.  But there is a lesson to be learned.

A workforce that 'feels good' works better.  If you can give your workers a sense of engagement and pride in the company, they are more likely to be positive and productive.

Why not try it? What have you got to lose?

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