Muca: Productivity levels in Albania are very low due to the system of labor relations

Employment expert and lecturer at Marin Barleti University in Tirana Erion Muca said that labor productivity in Albania is at a very low level, primarily due to the system of labor relations and the lack of instruments for measuring performance and efficiency at work.

Muca explained to Kosovo Online that labor relations in Albania are based on full-time employment, with an eight-hour working day, but that, on the other hand, there is a lack of instruments for measuring performance and efficiency at work, and consequently those related to productivity as well.

“It is understood that Albania is one of those countries where instruments for measuring productivity exist in the public sector, but they do not function properly. Meanwhile, in the public sector, instruments for measuring productivity are largely lacking, which turns low productivity into something that cannot be changed. Many private companies do not develop or grow because, in general, employees in Albania work efficiently for three to four hours a day, while they spend the rest of their time either mechanically slowing down the pace of work or simply trying to make it appear that they are present at the workplace. There is no productivity throughout the entire working day, and this leads to a decline in the employee's productivity level. Another problem in this area is that employees here are evaluated based on the hours they work, rather than on the basis of the product or the final result of their work,” Muca said.

In his view, Albania lacks models that address the standardization of the internal organization of many companies.

“So, there is a lack of an appropriate organizational structure, as well as an appropriate organizational culture. By this I mean that many companies do not operate as modern businesses in terms of their internal organization, which means they are not sufficiently familiar with the rules of modern strategic business management. At its core, such management must include employee motivation and must stimulate employees' interest in working more, through its internal infrastructure, which starts with proper financial compensation for work performed and extends to the company's respect for and sensitivity to the needs and problems employees may have,” the professor said.

He said there must be opportunities for internal advancement within a company throughout an employee's career, which is another element that motivates workers.

“Finally, there must be continuous respect for contracts with employees. In the absence of these elements, it is difficult for an entrepreneur today to hold employees accountable for the results of their work and their productivity, because the entrepreneur has not done even the minimum that should have been done in terms of supporting employees, keeping them active at all times and treating an employee as an important partner in the business. That is why many companies today have difficulty finding capable employees,” our interviewee believes.

As for the state's investment in productivity, he said there has been some improvement and that this appears to be an important element related to the structure of Albania's labor market.

“We must bear in mind that many young people today work as ‘freelancers’, using the talent and skills they possess. These young people avoid full-time employment in a traditional company and offer their expertise through contractual arrangements with these companies. They cooperate with these companies by providing services and work based on their skills, according to a specified period of time and cost. In other words, they enter into a business partnership with traditional companies, offering them a specific project. This encourages young people to be productive when they offer a service based on a specific project, within specific deadlines, rather than working according to the traditional model of eight hours a day or 40 hours a week. They work on the basis of a specific product or a specific final result,” Muca said.

As he said, another element that negatively affects productivity is the lifestyle that some young people have become accustomed to.

“I am talking about those young people who do not want to work too hard, that is, who do not want to be too involved in their jobs and do not want to develop their skills. This mentality, which reaches the level of laziness, means that many of these young people are not committed to achieving high results and are not demanding enough of themselves to achieve certain professional goals. They want to work at a very slow pace, in jobs that are generally found for them by their mother or father, and remain there to collect a salary at the end of the month,” Muca concluded.