On the train yesterday morning I read a column by Graeme Leach in City AM outlining the reasons why wage inflation is so low. The conclusion he reached was that employee productivity must rise in order for wages to rise. While I can’t say that I followed all of his explanation, it certainly made sense at a basic level. This got me thinking about how employers generally tackle the challenge of improving productivity. The standard approach is to invest (heavily) in new operating systems that will reduce the cost of processing every transaction/customer interaction/etc. Or if the business cannot afford.