It could be revenue neutral or revenue positive in the first few years, as companies have a need for fewer servers and less space, and productivity measures go up, Moerdler noted.
Total factor productivity, which measures how efficiently labour and capital are combined, is only 42% of the level in America, or 82% that in South Korea.
These planned reductions are expected to be driven by aligning the company's workforce with its new strategy as well as through a range of productivity and efficiency measures.
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It measures your productivity and the value of your yearly labor.
Such measures should raise productivity growth, but wage restraint will still be needed to restore competitiveness.
Productivity will be improved by measures addressing competition, investment, entrepreneurship and improving the skills of the British people.
In one of several measures designed to boost productivity in a sagging economy, Spain's unions and business associations have agreed to suppress three bridges by moving the holidays to Mondays.
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Under these terms, the last thing we want to do is adopt policy measures that lead to arrangements that will lower productivity.
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Moreover, each of these measures can be calculated in two ways: total productivity and first-author productivity.
In any event, the fiscal conservatism implied by National's centre-right ideology means that the new government will seek to present most of its policy measures as having a long-term benefit for productivity and competitiveness.
Underlying productivity trends appear generally favorable, despite the recent slowing in some measures, and the markup of prices over unit labor costs is high by historical standards, so such an outcome is certainly possible.
So politicians should eschew policies that reduce the long-term growth rate, such as protectionism or higher taxes, and focus instead on measures that boost the growth potential, such as more flexible labour markets and other productivity-enhancing reforms.
Realizing that this option is no longer viable, EU leaders could implement measures, such as a revamping of its painfully rigid labor market, to ignite entrepreneurship, innovation, productivity, and growth.
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