A new online calculator to help companies compute their productivity performance was launched by the Singapore Business Federation (SBF) on Tuesday (Nov 3).
The Holistic Industry Productivity Scorecard (HIPS) Calculator allows companies to enter nine key financial figures such as labour cost, operating profit and fixed assets. Through a three-step process, the HIPS calculator will present data on 10 productivity indicators. This illustrates the company’s holistic productivity performance and compares year-on-year performance with benchmarks against industry peers.
After obtaining their scorecards, companies can enrol in a one-to-one diagnostic programme to help them better understand their scores and how they can improve.
The HIPS Calculator was developed by SBF, with DP Information Group as the knowledge partner.
The calculator and the scorecard can be accessed via the HIPS portal and is free for companies to use. SBF hopes to have 30,000 small- and medium-sized enterprises on board this calculator by 2020.
Mr Victor Tay, the chief operating officer of SBF, explained how the HIPS Calculator could help the food and beverage cluster boost productivity: “Around 32 per cent of their business cost belongs to the labour and head count. This vis-a-vis what is said maybe in Taiwan, where we saw around 15 per cent on average.
“We’re almost twice or double that percentage of that labour cost. So the ability to streamline this cost will become essential, when it comes to the ability to generate the profit and therefore give them more liquidity to be able to plough back, and give more quality services.”
news source & image credits: channelnewsasia.com