Cheap labour, the first sign of bad work efficiency

Posted on August 11, 2007

From time to time I hear on TV some reports on how bad the work efficiency is in Romania. And on the other hand, with the same frequency I hear how much some employees work for some companies and how you are at the mercy of the employer with the overtime that never gets paid. Every person I know, young or old has stories about how much they work.

So what’s going on? It’s bad work efficiency. Most managers think that because labor is so cheap is always better to hire an extra cheap man than to improve processes, technologies and tools. Let’s get some examples to see what I’m really talking about:

CRM Usage
Most of companies don’t use (and they don’t even know they should use) CRM systems. They use excel and word, because investing in a good CRM seems always more expensive than hiring some more people.

Agriculture
Most of the agriculture is done by…horse !@#! And now, as it was a very dry year we see reports on TV about lost crops because it haven’t rained in a while. Because nobody invested in irrigation systems…

Overall business activities Bad computers. Bad networks. Bad infrastructure. It doesn’t matter if I need 15 mins to boot my computer…

And then people wonder why they don’t have more money and how an “employee with less work” it’s better paid in Western countries. Because we lack the efficiency culture, and no matter how many hours we put into doing something, always a better trained, better organized employee will get more work done.

In theory with their limited resources, small businesses should be the first ones to look for ways to improve work efficiency. In reality, my experience has shown that “we should do that or accomplish this no matter the costs” are far more popular words amongst small business owners.

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