Leadership, Not Inflation, Biggest Driver of Workplace Productivity – Institute

The Chartered Institute of Personnel Management of Nigeria (CIPM) has identified ineffective leadership, rather than inflation or other macroeconomic pressures, as the greatest determinant of workplace productivity, urging organisations to prioritise people-centred leadership and workplace redesign to remain competitive in a challenging business environment.

The institute made the assertion at its Corporate Members Forum 2026, themed “Re-engineering Employee Productivity Amidst Macroeconomic Stress,” where business executives, human resource professionals and corporate leaders examined strategies for sustaining organisational performance despite inflation, exchange rate volatility, rising operating costs, talent shortages and rapid technological change.

Speaking at the event, the President and Chairman of the Governing Council of CIPM, Mallam Ahmed Ladan Gobir, said organisations must stop treating productivity as merely an operational issue and recognise it as a leadership responsibility that can drive long-term business growth and competitiveness.

According to him, while many organisations attribute declining productivity to harsh economic conditions, the more significant challenge often stems from uninspiring leadership.

“The biggest threat to productivity in today’s economy is not actually inflation. It is uninspired leadership,” Gobir said. “Inflation may increase the cost of doing business, but uninspired leadership increases the cost of lost ideas. Exchange rates may depreciate currencies, but toxic leadership depreciates human confidence.”

Gobir noted that organisations that invest in their workforce, inspire a sense of purpose, and build resilient workplace cultures are better positioned to withstand economic shocks and emerge stronger.

He described human capital as Nigeria’s greatest asset, stressing that sustainable productivity depends on leaders’ ability to unlock employees’ potential and create environments where innovation and performance can flourish.

The CIPM president also challenged organisations to move beyond compliance-driven management and embrace people-centred leadership capable of transforming workplace pressure into improved capability, innovation and productivity.

Delivering the keynote address, the managing director of SoftAlliance and Resources Limited, Dr Bisi Aina, argued that productivity challenges confronting businesses are largely systemic rather than employee-related.

He said organisations should redesign their work systems rather than expecting employees to simply work harder despite worsening economic conditions.

“Productivity today is no longer an employee problem. It is a system design problem,” Aina said.

He explained that many organisations ask why employees are not working harder instead of assessing whether existing systems enable them to perform effectively.

According to him, average employees operating within efficient systems consistently outperform exceptional employees working in poorly designed environments.

Aina identified five critical drivers of higher productivity, including simplifying work processes, digitalising operations, empowering managers, continuously developing workforce capabilities and measuring performance based on value delivered rather than hours spent at work.

During a panel session, the HR coordinator at Mota-Engil Nigeria, Chinyere Olusanya, said many organisations still equate long working hours and physical presence with productivity instead of focusing on measurable outcomes.

She urged organisations to adopt performance management systems that reward the quality and impact of employees’ contributions rather than workplace activity.

Also speaking, the group HR lead at SystemSpecs, Ibem Kalu Idika, advocated flexible and personalised employee welfare programmes that address workers’ actual needs while improving organisational efficiency.

He maintained that productivity should be viewed as part of a broader drive for operational excellence, balancing efficiency, quality, innovation and employee wellbeing.

Participants at the forum agreed that although organisations cannot control inflation, exchange rate fluctuations or broader macroeconomic challenges, they can strengthen leadership, redesign work processes, embrace technology and build high-performance cultures that enable employees to thrive despite economic uncertainty.

The institute concluded that organisations that will outperform in the current business climate are those that invest in leadership, unlock human potential and create systems that transform economic pressure into sustained performance.