{"id":675232,"date":"2025-06-15T09:00:31","date_gmt":"2025-06-15T06:00:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/workers-need-better-tools-and-tech-to-boost-productivity-why-arent-companies-stepping-up-to-invest\/"},"modified":"2025-06-15T09:00:31","modified_gmt":"2025-06-15T06:00:31","slug":"workers-need-better-tools-and-tech-to-boost-productivity-why-arent-companies-stepping-up-to-invest","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/workers-need-better-tools-and-tech-to-boost-productivity-why-arent-companies-stepping-up-to-invest\/","title":{"rendered":"Workers need better tools and tech to boost productivity. Why aren&#8217;t companies stepping up to invest?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a25853be6205\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a25853be6205\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/workers-need-better-tools-and-tech-to-boost-productivity-why-arent-companies-stepping-up-to-invest\/#Why_is_investment_so_weak\" >Why is investment so weak?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/workers-need-better-tools-and-tech-to-boost-productivity-why-arent-companies-stepping-up-to-invest\/#The_%E2%80%98animal_spirits_are_lacking\" >The &#8216;animal spirits&#8217; are lacking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/workers-need-better-tools-and-tech-to-boost-productivity-why-arent-companies-stepping-up-to-invest\/#The_high_degree_of_uncertainty\" >The high degree of uncertainty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/workers-need-better-tools-and-tech-to-boost-productivity-why-arent-companies-stepping-up-to-invest\/#What_can_be_done\" >What can be done?<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2025\/employee-computer.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/hires\/2025\/employee-computer.jpg\" data-sub-html=\"Credit: cottonbro studio from Pexels\">\n<figure class=\"article-img\">\n            <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2025\/employee-computer.jpg\" alt=\"employee computer\" title=\"Credit: cottonbro studio from Pexels\" width=\"800\" height=\"530\"\/><figcaption class=\"text-darken text-low-up text-truncate-js text-truncate mt-3\">\n                Credit: cottonbro studio from Pexels<br \/>\n            <\/figcaption><\/figure>\n<\/p><\/div>\n<\/div>\n<p>As Prime Minister Anthony Albanese and Treasurer Jim Chalmers turn their attention to improving productivity growth across the economy, it will be interesting to see what the business community brings to a <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/theconversation.com\/albanese-announces-first-woman-treasury-secretary-and-a-roundtable-on-boosting-productivity-257334\" target=\"_blank\">planned summit in August<\/a>.<\/p>\n<p>Labor <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.rba.gov.au\/education\/resources\/explainers\/productivity.html\" target=\"_blank\">productivity<\/a> (output per hour worked) has barely grown this decade.<\/p>\n<p>Much of the focus in the current debate has been on the role of workers (labor) and industrial relations. Less discussed has been low business investment (capital).<\/p>\n<p>Labor will be more productive if each worker can use more capital: machinery, equipment and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. Over the medium term, providing workers with more capital\u2014&#8221;capital deepening,&#8221; in the jargon\u2014tends to be the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.pc.gov.au\/research\/completed\/productivity-before-after-covid\/covid-productivity.pdf\" target=\"_blank\">main contributor<\/a> to labor productivity growth.<\/p>\n<p>But business investment as a share of gross domestic product (GDP) is currently at its lowest level since the mid-1990s.<\/p>\n<p>Investment is low in both the mining and non-mining sectors. In the latest national accounts report for the March quarter, business investment in machinery and equipment <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.abs.gov.au\/statistics\/economy\/national-accounts\/australian-national-accounts-national-income-expenditure-and-product\/latest-release\" target=\"_blank\">fell 1.7%<\/a>.<\/p>\n<p>The average worker now uses less capital equipment\u2014machines and computers\u2014than a decade ago. Investment just hasn&#8217;t kept pace with growth in employment.<\/p>\n<p>                                                                                                        <!-- TechX - News - In-article --><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_investment_so_weak\"><\/span>Why is investment so weak?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One possible reason was <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.rba.gov.au\/speeches\/2023\/sp-gov-2023-06-07.html\" target=\"_blank\">put forward<\/a> by then Reserve Bank governor Philip Lowe in 2023. He suggested that, during the COVID pandemic, firms concentrated on surviving. Seeking out more efficient ways to produce was a lower priority. But post-pandemic, firms seem to have been slow to pivot back to an efficiency focus.<\/p>\n<p>Another reason may be that, until recently, <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/theconversation.com\/we-know-how-to-boost-productivity-and-lift-wages-but-it-will-take-time-and-much-tougher-tax-reform-207609\" target=\"_blank\">wage growth<\/a> has been slower than the growth in prices of goods and services produced. This may have reduced the incentives for firms to invest in the equipment needed to boost labor productivity.<\/p>\n<p>A key driver of investment is profitability. Firms are more likely to fund investment from retained earnings than by borrowing or raising capital. But the share of corporate profits in the economy has been quite high in recent years. So this does not explain low investment.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_%E2%80%98animal_spirits_are_lacking\"><\/span>The &#8216;animal spirits&#8217; are lacking<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Business confidence\u2014what economist John Maynard Keynes famously called &#8220;<a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.jstor.org\/stable\/1942805?seq=5\" target=\"_blank\">animal spirits<\/a>&#8220;\u2014is another important driver.<\/p>\n<p>Share prices, both in Australia and the rest of the world, have grown strongly in recent years. The S&amp;P\/ASX 200 index of Australian share prices is close to its <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.asx.com.au\/\" target=\"_blank\">all-time high<\/a>. This would suggest financial markets are very optimistic about the prospects of Australian companies.<\/p>\n<p>Direct <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/business.nab.com.au\/nab-monthly-business-survey-april-2025\/\" target=\"_blank\">surveys of Australian businesses<\/a> from National Australia Bank suggest conditions (the current situation) and confidence (about the future) are around their long-term average level. So this also does not explain the low investment.<\/p>\n<p>One contributor to low investment may be that firms are <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lying inappropriately high &#8220;<a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.rba.gov.au\/publications\/bulletin\/2021\/dec\/why-are-investment-hurdle-rates-so-sticky.html\" target=\"_blank\">hurdle rates<\/a>.&#8221; These refer to the minimum return firms expect from an investment before they will undertake it.<\/p>\n<p>Hurdle rates tend to be &#8220;sticky&#8221; over time, meaning they do not move much. Many companies still apply hurdle rates of over 12%. These were appropriate back when interest rates and inflation were much higher, but seem too high now as borrowing costs have fallen with interest rate cuts.<\/p>\n<p>The Productivity Commission has <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.pc.gov.au\/research\/completed\/productivity-before-after-covid\/covid-productivity.pdf\" target=\"_blank\">suggested<\/a> one contributor to low investment could be a higher risk premium. Since the global financial crisis in 2007\u201308, companies and investors may have become more cautious about taking on risk.<\/p>\n<p>Another factor could be growing market power of Australian companies that dominate a sector, making them complacent rather than striving to improve their performance.<\/p>\n<p>                                                                                                        <!-- TechX - News - In-article --><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_high_degree_of_uncertainty\"><\/span>The high degree of uncertainty<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Reserve Bank recently compiled <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.rba.gov.au\/speeches\/2025\/sp-ag-2025-06-03.html\" target=\"_blank\">two measures of uncertainty<\/a>. One is derived from stock markets. The other is based on the number of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> articles about policy uncertainty.<\/p>\n<p>Both show the current environment is as uncertain now as it was during the early stages of the global financial crisis in 2007\u201308 and the COVID pandemic.<\/p>\n<p>A common response to uncertainty is to defer decisions on both investment and hiring new workers until the outlook is clearer. A <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.rba.gov.au\/publications\/rdp\/2016\/2016-01.html\" target=\"_blank\">study<\/a> by the Reserve Bank found that greater uncertainty did indeed reduce investment. But the size of the impact was\u2014you guessed it\u2014<a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.rba.gov.au\/speeches\/2025\/sp-ag-2025-06-03.html\" target=\"_blank\">uncertain<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_can_be_done\"><\/span>What can be done?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Business lobbies often attribute low rates of investment (and anything else they think people may not like) to &#8220;excessively high&#8221; corporate tax rates. But at 30% for large companies and 25% for small, the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/treasury.gov.au\/publication\/business-tax-working-group-consultation-guide\/consultation-guide\/the-history-of-australias-company-tax-rate\" target=\"_blank\">company tax rate<\/a> is low by historical standards.<\/p>\n<p>Some multinational firms may be deterred from entering the Australian market as our company tax rate is above that in some other jurisdictions. It is hard to tell how important this effect is. Company tax is only one of many factors that affect the comparative risk and return of Australia as an investment destination.<\/p>\n<p>The Productivity Commission is <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/engage.pc.gov.au\/projects\/dynamic-resilient-economy\/page\/corporate-tax-reform\" target=\"_blank\">investigating<\/a> whether the corporate taxation system could be made more efficient rather than just lowering rates.<\/p>\n<p>In the meantime, however, firms may be encouraged to invest more by a more stable domestic economic outlook. Inflation is back within the central bank&#8217;s <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.rba.gov.au\/education\/resources\/explainers\/australias-inflation-target.html\" target=\"_blank\">2\u20133% target range<\/a>. Employment is around an all-time high proportion of the working age population. The election has removed some political uncertainty with a government holding a clear majority.<\/p>\n<p>Businesses should stop whingeing and start providing workers with the tools they need to become more productive.<\/p>\n<div class=\"d-inline-block text-medium my-4\">\n                                                Provided by<br \/>\n                                                                                                    The Conversation<br \/>\n                                                    \t\t\t\t\t\t\t\t\t\t\t\t\t<a rel=\"nofollow\" target=\"_blank\" class=\"icon_open\" href=\"https:\/\/theconversation.com\" target=\"_blank\" rel=\"nofollow\"><br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<svg>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<use href=\"https:\/\/techx.b-cdn.net\/tmpl\/v2\/img\/svg\/sprite.svg#icon_open\" x=\"0\" y=\"0\"\/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/svg><br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p><\/div>\n<p class=\"article-main__note mt-4\">\n                                                This article is republished from <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/theconversation.com\" target=\"_blank\">The Conversation<\/a> under a Creative Commons license. Read the <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/theconversation.com\/workers-need-better-tools-and-tech-to-boost-productivity-why-arent-companies-stepping-up-to-invest-257806\" target=\"_blank\">original article<\/a>.<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/counter.theconversation.com\/content\/257806\/count.gif?distributor=republish-lightbox-advanced\" alt=\"The Conversation\" width=\"1\" height=\"1\"\/>\n                                            <\/p>\n<p>                                        <!-- print only --><\/p>\n<div class=\"d-none d-print-block\">\n<p>\n                                                <strong>Citation<\/strong>:<br \/>\n                                                Workers need better tools and tech to boost productivity. Why aren&#8217;t companies stepping up to invest? (2025, June 14)<br \/>\n                                                retrieved 15 June 2025<br \/>\n                                                from https:\/\/techxplore.com\/news\/2025-06-workers-tools-tech-boost-productivity.html\n                                            <\/p>\n<p>\n                                            This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no<br \/>\n                                            part may be reproduced without the written permission. The content is provided for information purposes only.\n                                            <\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p><script id=\"facebook-jssdk\" async=\"\" src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more Like this articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/category\/sciencee\/\" target=\"_blank\" >Science category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/techxplore.com\/news\/2025-06-workers-tools-tech-boost-productivity.html\" target=\"_blank\" >Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit: cottonbro studio from Pexels As Prime Minister Anthony Albanese and Treasurer Jim Chalmers turn their attention to improving productivity growth across the economy, it will be interesting to see what the business community brings to a planned summit in August. Labor productivity (output per hour worked) has barely grown this decade. Much of the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":675233,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/scx2.b-cdn.net\/gfx\/news\/hires\/2025\/employee-computer.jpg","fifu_image_alt":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-675232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sciencee"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/675232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=675232"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/675232\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/675233"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=675232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=675232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=675232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}