Moreover, predictable employee reactions to belt-tightening are creating a counterproductive climate within employee ranks. Let's examine some of the myths driving these traditional executive actions and the reactions they produce. In fact, most managers know from experience that savings generated by mandated cuts are often offset by increases in vendor outsourcing and severance expenses. Again, experienced managers know that personnel cuts are not usually accompanied by a corresponding reduction in required work output. The result is often increased job stress that serves to reduce the productivity of the workers who remain.
Increased output is an ongoing reality.
Since the mid-1970s, according to the U.S. Bureau of Labor Statistics, retail productivity has doubled every seven to 10 years. While a portion of these gains has been driven by technology, through growing use of a personal computers, optical scanners, bar coding, and the like, most of them are achieved by manages and employees dreaming up smarter ways to get things done. To harness this creative energy, retailers need to adopt a disciplined, programmed approach to generating productivity gains. Few job functions, internal processes, or third-party contracts are optimized for resource usage and business impact. Retailing growth is increasingly reliant upon third-party use of brand names or other trademarks.