ESTABLISHMENTS WITH PRODUCTIVITY IMPROVEMENT PROGRAM (PIP) IN 2017

• More than half (54.4%) of the total 32,288 establishments employing 20 or more workers in 2017 implemented various productivity improvement programs (PIPs).

• Classified by major industry group, establishments in electricity, gas, steam and air conditioning supply posted the highest share at 66.0 percent followed by the human health and social work activities except public health activities at 62.6 percent, manufacturing at 62.1 percent and accommodation and food service activities at 60.5 percent.

PRODUCTIVITY IMPROVEMENT PROGRAMS IMPLEMENTED

• The topmost productivity improvement program implemented by the establishments was the 5S of Good Housekeeping with 62.3 percent. Other programs widely implemented include Continuous Process Improvement (41.9%); Client Satisfaction Measurement (41.2%); Total Quality Management (38.4%) and Suggestion/Feedback Scheme (30.2%). (Figure 1)

PRODUCTIVITY IMPROVEMENT PROGRAM DEVELOPERS

• The largest share of productivity improvement program developer was the management, accounting for 83.0 percent. This was followed by the supervisors/line leaders at 20.6 percent; rank-and-file/production workers at 9.3 percent; labor-management committee at 7.2 percent and productivity consultants at 3.1 percent. (Figure 2)

PRODUCTIVITY IMPROVEMENT PROGRAM OBJECTIVES

• Improving product and quality through skills training is the most cited objective in majority (67.4%) of the establishments’ productivity improvement program. Other objectives were to reduce complaints through basic customer service (47.6%); to reduce cost in work accidents/injuries/diseases (47.0%) and wastage (44.0%); to improve product and quality by technology (37.9%) and innovation (37.1%) and reduce cost in personnel downtime (32.1%). (Figure 3)

• Less than 30 percent of the establishments had identified reduce complaints in queuing time (28.8%), after sales service (28.0%) and product returns (27.7%); reduce cost in process cycle time (26.3%), machine downtime (24.2%) and rework (23.1%).

COVERAGE OF WORKERS WITH PIP

• In 2017, almost 2.2 million workers were covered by the productivity improvement programs. More than half or 55.2 percent of the workers were male while the remaining 44.8 percent were female. (Figure 4)

GAINSHARING SCHEMES/PRACTICES IN ESTABLISHMENTS WITH PIP

• A total of 8,313 (47.3%) establishments with PIP recorded gainsharing schemes/ practices. By type of gainsharing, provision of cash is the highest at 61.9 percent share. Same can be observed in terms of profit sharing with cash provision recorded the highest at 14.5 percent. 

USUAL FORM OF NON-CASH INCENTIVE

• Gift certificate/cheque was the most common usual form of non-cash incentives provided by the establishments with productivity improvement programs to their employees at 44.1 percent. This was followed by grocery items at 32.7 percent. While subsidized travel/leisure was trailing behind at 6.4 percent. (Figure 5)

EMPLOYEES BENEFITTED FROM THE PIP INCENTIVES

• About six out of every 7 (86.8%) rank-and-file/production workers benefitted from the productivity improvement program incentives. Following are supervisors/foremen (8.8%) and managerial/executive (4.4%). (Figure 6)

ASSISTING GOVERNMENT AGENCY

• Among agencies that had given assistance to establishments in developing and implementing productivity improvement programs, the Department of Labor and Employment (DOLE), particularly National Wages and Productivity Commission (NWPC) – Regional Tripartite Wages and Productivity Board (RTWPB) provided the most assistance at 20.8 percent. (Figure 7)

TECHNICAL ASSISTANCE NEEDED FROM RTWPBs

• More than half (54.5%) of the establishments with productivity improvement programs considered training as the technical assistance they needed the most from the RTWPBs. This was followed by technical assistance on information materials at 31.5 percent and consultation at 28.7 percent. (Figure 8)

CLAIRE DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

See more at the Integrated Survey on Labor and Employment Landing Page