Stop Investing in Jobs Start Investing in Productivity

For too long, investments in youth employment and training have been directed at one simple goal: job creation. But in today’s fast-paced economy, simply creating jobs is not enough. If we want to build a truly competitive workforce, we need to start focusing on something that’s far more important—productivity.

With decades of experience building high-performance global teams and delivering technology-driven outcomes, Wazee has seen the true cost of human capital and how critical it is to the success of any business. Time, resources, and wages—all finite and high-stakes investments—are poured into hiring, training, and retaining workers. But what’s the return? If productivity isn’t the core metric we’re driving toward, those investments are likely underperforming.

The Real Cost of Human Capital

Consider this: wages are often the single biggest expense for a company. From recruitment and training to management, mentorship, coaching, tools, and integration, these are all investments companies make, hoping they will pay off in productivity and value. Yet, current workforce metrics too often focus on headcount and job titles, not on the value generated.

Average revenue or profit per employee provides some measure of success, but it’s rarely a true reflection of each employee’s productivity. Not everyone contributes the same, and not every role is measured equally. For instance, some people drive day-to-day operations, while others work on innovation, which may not yield immediate gains but is crucial for long-term growth. Productivity, not the number of jobs, is the real value.

AI: The Productivity Game-Changer (or Threat?)

As AI continues to reshape the workplace, every job and person will be impacted. The technology promises significant productivity gains but also poses the threat of eliminating roles altogether. So how do we prepare workers for a world where tasks are automated and roles are evolving? By focusing on skills that drive productivity, not static roles that may soon become obsolete.

We’re also facing a demographic crisis in mature markets, where ageing workforces and declining populations are widening the skills gap. AI will help alleviate some of the pressure, but we need a pipeline of new workers who can quickly become productive, not just fill a title but deliver real results.

Why Jobs-Focused Skilling is Failing

The current investment in education and training is outdated. Training providers and investors still aim to fill “jobs” as if job titles alone can secure economic growth. This focus is not only misguided but is setting up new entrants for failure. Jobs with titles but without a focus on productivity have minimal impact.

Training and job creation that don’t align with actual skills needs create a workforce that lacks adaptability and the practical skills needed to make an impact.

Moving to a Productivity-First Approach

The shift is clear: we must move from a job role mentality to a productivity-first mindset. Productivity means value, and if an individual is productive, they’re generating value for their organisation. In return, they’re likely to be better compensated, feel appreciated, and have higher work satisfaction. A productive workforce is not just a benefit to companies; it’s a career-building advantage for workers.

To make this happen, training programs need to be designed with productivity outcomes in mind, focusing on the skills that will drive measurable results. Investors should prioritise productivity-driven skilling over headcount. Training providers should be incentivised based on their ability to deliver productive workers—not just people with a new job title.

Rethinking ROI on Human Capital Investments

The true return on investment in human capital is seen when workers become productive, agile, and able to adapt to new challenges. By focusing on productivity, companies ensure that every dollar spent on training, salaries, senior experts, and tools translates into measurable value. And in the long run, a productivity-driven workforce is not just a cost-saver; it’s a competitive advantage.

It’s Time to Get It Right

We need a radical shift in thinking: stop investing in jobs and start investing in productivity. Building a productive workforce is the only way forward in a world where technology, demographics, and market needs are constantly evolving. For training providers, investors, and companies alike, the focus should be clear - if we’re not aiming for productivity, we’re missing the mark.

If you’re an investor, ask yourself: are you investing in titles or in outcomes? And if you’re in training, are you preparing people for job roles, or are you preparing them to make an impact? The time has come to prioritise productivity and ensure our workforce investments create real, measurable value.

#InvestInTheFuture #ProductivityMatters #HolisticWorkforceDevelopment #GlobalWorkforceDevelopment #Wazee