Over the past year, the OECD has made much of Israel’s relatively low labour productivity performance. A updated survey from the Taub Center in Jerusalem reveals a more positive picture. Since 2001, productivity has improved 15%. Interesting, wages have remained static.

I would not normally be too interested in such stats. However, I am still trying to absorb a very impressive summary, which I read last week. Apparently, there is an annual competition amongst the larger employers in Israel as to who can come up with the most innovative techniques to keep workers happy. The event is sponsored by numerous parties, including KPMG and the financial newspaper “Calcalist” (Economist).

Here are my three favourite case studies.

• Tower Semiconductors is located in the Galilee region. Approximately, 75% of the senior management has risen through the ranks. The company goes out of its way to finance the tuition fees of first and second degrees. Currently, around 45 members of staff are benefitting from this arrangement, which will filter back into the firm’s profits in the years to come.
• Local authorities are never known to be great payers. Some help out with training courses. The Modi’in Regional Council has taken this simple concept one exciting step further. Not only does it seek to offer technical courses. It will then hire people who have undergone training. The example cited featured a worker who had learnt photography and who was then asked to film one of the council’s events.
• Nilit’s factory operates 3 shifts every 24 hours. It employs people of all faiths – 60% of its employees count themselves as Moslems and a further 20% are Christian. Before each festival, even at 11.30pm at night, the factory will recognise the on-coming religious event. And that demands the participation of representatives of senior members of staff. Staff turnover has fallen dramatically from 30% to 20%.

I do not have space for all the stories. By way of a bonus, it is worth noting that Pizza Hut deliberately looks to those 16-18 year olds, who start with them on summer jobs, in order to promote them in years to come. Apparently, 90% of outlet managers began their careers that way.

What this anecdotal Israeli experience seems to be confirming is that you do not have to pay somebody a lot of money in order to keep them in their place of work. People want to be encouraged. They need to feel that they are valued. That is one of the core elements of motivating employees. That is what these innovative ideas are celebrating.