Saturday, July 9, 2016

A multiplier less than one

Fiscal Times: At a time when many cities and states are struggling to make ends meet, even with an improving economy, officials are constantly attempting to improve their workforce productivity in order to get more bang for the buck.There are more than 19.2 million employees in state and local government, according to the Bureau of Labor Statistics. And state and local governments together spent $3.7 trillion last year – or about 11 percent of gross domestic product. Much of those funds went to cover the salaries and benefits of public school teachers, policemen, firefighters, clerks and city and state government managers and officials.
But as a new Gallup study indicates, many government jurisdictions are saddled with a preponderance of unhappy, indifferent and generally unproductive workers who are costing taxpayers billions of dollars in lost productivity.
Based on a nationwide survey of state and local government employees in 43 of 50 states, Gallup found that 71 percent of the work force was “disengaged” or unenthusiastic about their jobs – and unwilling or incapable of improving their output. By contrast, only 29 percent said they felt fully engaged in their work and eager to improve on the services they provide.
Considering the large share of state and local government budgets devoted to personnel, Gallup said “disengagement” is costing state and local governments up to $100 billion a year – or more than most states’ total annual budgets.

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