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Adoption of innovative work practices by indigenous firms crucial to Irish prosperity – Minister Sherlock

Government focussed on increasing manufacturing jobs

The adoption of innovative workplace practices by indigenous companies will have a crucial bearing on Ireland’s future prosperity, according to Minister for Research and Innovation, Seán Sherlock TD.

The Minister made the comments today (Thursday) at the publication of the special report on "Work Organisation Innovation in Ireland" by Eurofound, the European Foundation for the Improvement of Living and Working Conditions, in Loughlinstown, Co Dublin.

Minister Sherlock commented, "If Ireland is to prosper and grow, workplace innovation needs to become commonplace, in indigenous firms as well as in overseas multinationals based here. Ireland has tended to look to overseas companies as drivers of change and innovation - this has to change. All the evidence shows that the adoption of innovative workplace-management techniques is linked strongly to significant improvements in productivity, turnover and employee retention."

"This report highlights the main features that support innovative workplace practices. Promoting a strong value system and a culture of employee involvement and engagement can empower companies and organisations to experiment in workplace organisation and innovation. Dialogue and trust are also critical."

"Arguably most important of all though is the development of competences, problem solving skills and innovative capacities and delivering on the responsiveness and flexibility needed to deliver increased sales in a highly competitive global market. Leadership and change management capabilities are critical in this regard. Other crucial elements are performance management and reward systems that encourage learning, risk-taking and team working."

"There has been a mistaken perception in Ireland about our potential to develop a strong indigenous manufacturing sector. While the nature of manufacturing has changed, it offers significant potential for job and career opportunities across a range of skills levels and across all regions and will make a valuable contribution to Ireland’s recovery. That is why the Government has launched a new National Step Change Initiative as part of its Action Plan for Jobs with the message that Ireland is in manufacturing and will continue to be in manufacturing in the future."

"I would like to commend the Irish social partner organisations, the Irish Business Employers' Confederation and Irish Congress of Trade Unions for their support for work innovation at national level. SIPTU, our largest union, and the contribution of its Ideas Institute, also deserve particular commendation for championing work place innovation in manufacturing companies as a means of securing growth and jobs."

"I can endorse the Report's recommendations that the Irish Government should continue to promote High Performance Work Practices in this country and also that it should collaborate with our EU partners to promote the diffusion of High Performance Work Practices across the EU Member States."