But it’s usually more than just the direct costs of the workers. Low productivity means more workers are required, which adds additional costs for accommodation, transport, mobilisation and supervision. Poor productivity also impacts the schedule which can result in the client imposing penalties for late completion as well as the contractor incurring additional overhead costs.
A major cause of poor productivity is a demotivated workforce.
See the attached interesting article:
The Warning Signs of a Demotivated Workforce
We will discuss other causes of poor labour productivity in future articles.