Discussion of Optimizing Service Productivity Aspects

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Service Productivity
Effects of the Pandemic on Service Productivity
Conclusion
References

Introduction

It is important to note that optimizing service productivity requires a deliberate analysis of data and national trends in order to assess the recent changes in a specific industry. The points of interests can include a wide range of metrics, which range from employment numbers to determine the available labor pool to output to evaluate the productivity. The selected service industry for the given analysis is wireless telecommunication carriers.

Service Productivity

Table 1. Wireless Telecommunication Carriers

Add Assigned Service Industry Recent labor productivity, unit labor costs, and related data
	Employment (thousands)	104.6
Percent change: 2019-2020	Labor productivity	5.0
	Unit labor costs	2.9
	Output	0.7
	Hours worked	4.1
	Labor compensation	2.2
Source: U.S. Bureau of Labor Statistics

Table 1 above and its contents show percent changes for employment, labor productivity, labor costs, output, worked hours, and compensation in the service sector of wireless telecommunication carriers. In addition, it shows that as of 2020, there were 104600 workers operating in the industry. For instance, from 2019 to 2020, labor productivity and output increased by 5% and 0.7%, respectively (U.S. Bureau of Labor Statistics, 2021). However, in the same period, unit labor costs, hours worked, as well as labor compensation declined by 2.9%, 4.1%, and 2.2%, correspondingly (U.S. Bureau of Labor Statistics, 2021). In other words, the sector indicates that wireless telecommunication carrier employees became more productive with higher output at a lower cost, less work time, and fewer money requirements.

In order to make the analysis more comprehensive, it is critical to assess a 1-year change in productivity, the average annual percentage change in productivity, and the percentage change in productivity in recent periods. In the case of the former, the wireless telecommunication carrier sector showed a 6.5% improvement for the year 2020 (U.S. Bureau of Labor Statistics, 2020). From 1987 to 2020, the industry increased its productivity annually with an average value of 11.8% (U.S. Bureau of Labor Statistics, 2020). A closer look indicates that an even higher level of productivity change took place between 2007 and 2020, which was 15.6% (U.S. Bureau of Labor Statistics, 2020). However, the greatest shifts in percentages in the positive direction can be seen between 2000 and 2007, when it was equal to 16.6% (U.S. Bureau of Labor Statistics, 2020). The summative overview of the presented values can be accessed in Table 2 below.

Table 2.Wireless Telecommunication Carriers: Productivity

Productivity Measurements	Year(s)
1-year change in productivity	2020	6.5%
Average annual percentage change in productivity	1987 2020	11.8%
Percentage change in productivity	2000 2007	16.6%
Percentage change in productivity	2007 2020	15.6%

From the data collected above, it is evident that the wireless telecommunication carrier sector was among the ones that underwent the greatest changes in productivity. No other industry shows a larger improvement in the percent productivity changes across the recent decades or the total available history (U.S. Bureau of Labor Statistics, 2020). However, the most recent information reveals a gradual decline because the average was only 6.5% compared to the shifts of previous years (U.S. Bureau of Labor Statistics, 2020). Despite the latter fact, the sector is still becoming more productive because workers output more for fewer hours and less compensation. It is stated that the sector is highly competitive, saturated, and commoditized, which means that the telecom industry has become excessively standardized and homogenous (Grone, 2022). The risk lies for the companies becoming mere utilities if they do not properly differentiate and adhere to more innovative strategies.

Effects of the Pandemic on Service Productivity

It should be noted that the COVID-19 pandemic had a clear impact on the service productivity trends of the wireless telecommunication carrier sector. The imposition of mandatory lockdowns and increase in the work from home framework had an effect on the industrys service as well as workers. Since many companies and organizations shifted towards such a format, the reliance and demand for wireless connections rose dramatically. It is reported that distance education coupled with employees working from their homes increased the bandwidth demand by 40% (Robuck, 2020). However, the wireless telecom industry was able to meet the needs due to years of productivity improvements. In addition, the workers of the sector itself transitioned to the work from home framework, and around 40% continue to do so after the lockdown is lifted (Robuck, 2020). Therefore, the provided research is adjacent to the information provided above.

It is evident that the pandemic put a greater degree of pressure on the wireless telecom sector, but it was able to ensure that the demand was met despite the lockdowns impacting the workers as well. The latter became more productive at a cheaper cost and fewer hours. However, the productivity growth rate declined in the first year of COVID-19 because the previous years showed two-digit percentage improvements in this metric. The constant movement toward more productivity and better efficiency in delivering wireless communications backfired, affecting the entire sector. The problem is excessive standardization and commoditization, where no company is distinct from another. The lack of a proper differentiation strategy can turn these companies into utilities rather than competitive and profitable enterprises. Thus, the most plausible solution for such organizations is to innovate through new technologies because it will reduce costs, further improve productivity, and allow differentiation.

Conclusion

In conclusion, wireless telecommunication carriers became more productive despite the COVID-19 pandemic. However, the industry is commoditized due to its excessive focus on efficiency rather than differentiation.