SOCIAL INNOVATION (WIN‐WIN AT
THE WORKPLACE: CONVERGENCE
OF ORGANISATIONAL PERFORMANCE
AND QUALITY OF WORKING LIFE)
FRANK POT
PROFESSOR OF SOCIAL INNOVATION
RADBOUD UNIVERSITY, NIJMEGEN
Conference ‘Working longer….’ 16/17 November 2010 Brussels
Social Innovation: win – win at the
workplace
Frank Pot
Definition
• Workplace innovation is the implementation of new and
combined interventions in the fields of work organisation,
HRM and supportive technologies.
• Non- technological innovation also covers dynamic
management, new marketing practices and external
collaboration.
‘National’ ‘programmes’
•
•
•
•
•
•
•
•
Finland: workplace development
Germany: innovative Arbeitsgestaltung; Innovationsfähigkeit
Belgium: sociale innovatie
Netherlands: sociale innovatie
Norway: value creation
UK: workplace innovation
Ireland: workplace innovation
Sweden: management and work organisation renewal
Urgency
• Decreasing workforce – increasing labour productivity
• Global competition and knowledge based economy –
development of competences and skills
• Making new technology work through innovative work
organisation
• Workplace innovation explains a larger part of innovation
success than technological innovation
Best and poorest performers in Finland
(409 self assessments)
Quality of working life
Performance
+
+
-
Best group
152 projects
participation
internal collaboration
Poorest group
31 projects
top-down
interventions
-
Source: Ramstad, 2009
Performance effects of improving working conditions
and work organisation as assessed by management
Trade and services
Production companies
Optimised health protection
Less comopensation for sick people
66,7%
51,6%
59,8%
60,0%
Consultation relevant for practice
53,0%
48,4%
Productivity increase
41,0%
Process optimisation
Reduced absenteeism
50,5%
50,4%
37,9%
27,4%
Increased customer satisfaction
62,1%
29,9%
Reduced failure rate
24,8%
Quality and innovation
43,2%
41,1%
27,4%
33,7%
Better position on the labor market
0%
Source: Bonitz et al., 2007:23
70,9%
56,8%
10%
20%
30%
40%
50%
60%
70%
80%
Ireland
– HPWS positive effects on performance outcomes, including labour
productivity, and innovation levels
– Also diversity and equality systems positive effects
– Reduced employee turnover (employee well-being?)
Working Smarter and Performance
% change in performance last 2 years
Performance criterion
SMEs without
working smarter
SMEs with
working smarter
Company results
2
18
Company turnover
7
15
Productivity
5
14
Employment
6
11
Economic Institute for SMEs. Source: Hauw et al., 2009
Social innovation and performance
Performance criterion
Performance social innovative versus
not social innovative organisations
Increase in turnover
15% higher
Increase in profits
14% higher
Innovation
37% higher
Productivity
22% higher
New clients
20% higher
Reputation
12% higher
Erasmus Competition and Innovation Monitor. Source: Jansen et al., 2009
Netherlands Employers Work Survey (TNO)
• Social innovative companies positive on combination of
increase in financial turnover, profits and labour productivity
• No effects on job autonomy
• Sickness absenteeism innovative firms 35 % than other firms
OSH interventions and performance
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
intervention
ergonomic screwdrivers
ergonomic workplaces
ergonomic workplaces
ergonomic workplaces
smaller bricks
ergonomic cabin
job enrichment
job enrichment
ergonomic tools
mechanical paving
mechanical transport
rolling carpet in van
ergonomic vacuum cleaners
sit-stand office desk
integral health program
safe road blocking
lifts for patient handling
Detection of wandering patients
Source: Pot and Koningsveld, 2009
sector
many
assembly grass mowers
quality control microchips
assembly emergency lights
brick laying for melting ovens
public transport (streetcar)
painters
plasterers
window pane mounting
road construction (paving)
road construction (paving)
parcel delivery
professional cleaning
office work
hospital
road construction
care of handicapped
care of demented elderly
benefits per
year/costs of
intervention
299%
64%
66%
1281%
171%
103%
108%
42%
95%
57%
154%
84%
211%
69%
424%
38%
60%
99%
return on
investment
(in years)
0,3
1,6
1,5
0,1
0,6
1,0
0,9
2,4
1,1
1,8
0,6
1,2
0,5
1,5
0,2
2,6
1,7
1,0
OSH benefits Core business
4%
96%
29%
71%
16%
84%
54%
46%
63%
37%
78%
22%
1%
99%
8%
92%
21%
79%
2%
98%
3%
97%
5%
95%
6%
94%
32%
68%
52%
48%
0%
100%
3%
97%
1%
99%
conclusions
• Urgency to increase labour productivity by working smarter
• Difficult to draw general conclusions
• Simultaneous improvement of performance and quality of
working life is possible but not always achieved
• Conditions:
– Commitment of management
– Participation of employees and their supervisors
• Pitfall:
– Top-down projects
European policy 1
• Workplace innovation missing dimension in Lisbon strategy
and in strategy EU2020
• Because:
–
–
–
–
–
Regarded as a private matter for employers
Focus on individual workplaces
Focus on technological innovation
Focus on short-term results
Resistance with managers to change balance of power
European policy 2
Opportunities:
• Draft new integrated guidelines for the employment policies
• Flagship on innovation
• Flagship on skills and jobs
• EESC own initiative opinion ‘innovative workplaces’
• ESF support
Conclusions
•
•
•
•
•
Do not wait for European Commission
National programmes are supportive
Key-role for social partners on national level
Involvement of government differs between countries
Most sustainable innovation if companies, social partners,
research organisations and government work together